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IMMIGRATION

What’s the latest on Sweden’s planned salary threshold for work permits?

The Swedish government is still planning to introduce a salary threshold for work permits, Migration Minister Maria Malmer Stenergard told The Local. But when? And how much? Here's what we know so far.

What's the latest on Sweden's planned salary threshold for work permits?
Swedish media report that the coalition parties can't agree on whether to make exceptions for certain jobs, such as assistant nurses. Photo: Fredrik Sandberg/TT

What’s the background?

In November parliament passed a bill put forward by the former Social Democrat-led government to raise the required salary that non-EU citizens have to earn to qualify for a work permit.

It stated that the new threshold would be introduced by a date to be decided by the government – which as of September 2022 is a new, right-wing government.

The exact figure hasn’t been set, but the government and its far-right Sweden Democrat partners have previously, in the Tidö coalition agreement after the September election, proposed setting it at the median Swedish salary, which is 33,000 kronor a month.

What now?

Not much has been announced since November, and Swedish media have been pressing the government for answers on when it is going to introduce the new salary threshold.

The Local did the same when we recently met Migration Minister Maria Malmer Stenergard for a sit-down interview in Malmö. She said she could not give us an exact date, but that the coalition parties were in the process of working on the final piece of legislation.

“We are really working this through thoroughly in order to have a well functioning system and we will also give organisations and other authorities the possibility to have their say before it goes into legislation,” said Malmer Stenergard.

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Swedish media report that the sticking point at the moment is that the government parties (Moderates, Christian Democrats and Liberals) and the Sweden Democrats can’t agree on whether or not to make exceptions for certain work permit applicants.

Critics of the salary threshold have argued that 33,000 kronor would effectively keep out a lot of highly qualified workers whose skills Sweden needs.

Liberal leader Johan Pehrson told Swedish news agency TT that he had been speaking with business and public sector leaders who were worried that the salary threshold would lead to a skills shortage, for example a shortage of assistant nurses.

“To manage the green transition in northern Sweden, we don’t just need people who make batteries, work in the mines or in the forest,” said Pehrson.

He did not want to say exactly what the exceptions should look like, but said they could potentially apply to “protected professional titles or niche sectors”.

But the Sweden Democrats are understood to be against exceptions.

“SD wants to throttle immigration at any cost,” an unnamed source told business site Dagens Industri, adding that the ongoing negotiations are “very tough”.

The Local’s interview with Maria Malmer Stenergard, discussing topics including salary threshold for work permits, waiting times at the Migration Agency, and exit visas for those waiting for a permit renewal will feature in the next episode of The Local’s podcast, Sweden in Focus, out this Saturday.

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For members

WORK PERMITS

Business leaders: Work permit threshold ‘has no place in Swedish labour model’

Sweden's main business group has attacked a proposal to exempt some jobs from a new minimum salary for work permits, saying it is "unacceptable" political interference in the labour model and risks seriously affecting national competitiveness.

Business leaders: Work permit threshold 'has no place in Swedish labour model'

The Confederation of Swedish Enterprise said in its response to the government’s consultation, submitted on Thursday afternoon, that it not only opposed the proposal to raise the minimum salary for a work permit to Sweden’s median salary (currently 34,200 kronor a month), but also opposed plans to exempt some professions from the higher threshold. 

“To place barriers in the way of talent recruitment by bringing in a highly political salary threshold in combination with labour market testing is going to worsen the conditions for Swedish enterprise in both the short and the long term, and risks leading to increased fraud and abuse,” the employer’s group said.   

The group, which represents businesses across most of Sweden’s industries, has been critical of the plans to further raise the salary threshold for work permits from the start, with the organisation’s deputy director general, Karin Johansson, telling The Local this week that more than half of those affected by the higher threshold would be skilled graduate recruits Swedish businesses sorely need.   

But the fact that it has not only rejected the higher salary threshold, but also the proposed system of exemptions, will nonetheless come as a blow to Sweden’s government, and particular the Moderate Party led by Prime Minister Ulf Kristersson, which has long claimed to be the party of business. 

The confederation complained that the model proposed in the conclusions of the government inquiry published in February would give the government and political parties a powerful new role in setting salary conditions, undermining the country’s treasured system of collective bargaining. 

The proposal for the higher salary threshold, was, the confederation argued, “wrong in principle” and did “not belong in the Swedish labour market”. 

“That the state should decide on the minimum salary for certain foreign employees is an unacceptable interference in the Swedish collective bargaining model, where the parties [unions and employers] weigh up various needs and interested in negotiations,” it wrote. 

In addition, the confederation argued that the proposed system where the Sweden Public Employment Service and the Migration Agency draw up a list of exempted jobs, which would then be vetted by the government, signified the return of the old system of labour market testing which was abolished in 2008.

“The government agency-based labour market testing was scrapped because of it ineffectiveness, and because it was unreasonable that government agencies were given influence over company recruitment,” the confederation wrote. 

“The system meant long handling times, arbitrariness, uncertainty for employers and employees, as well as an indirect union veto,” it added. “Nothing suggests it will work better this time.” 

For a start, it said, the Public Employment Service’s list of professions was inexact and outdated, with only 179 professions listed, compared to 430 monitored by Statistics Sweden. This was particularly the case for new skilled roles within industries like battery manufacturing. 

“New professions or smaller professions are not caught up by the classification system, which among other things is going to make it harder to recruit in sectors which are important for the green industrial transition,” the confederation warned. 

Rather than implement the proposals outlined in the inquiry’s conclusions, it concluded, the government should instead begin work on a new national strategy for international recruitment. 

“Sweden instead needs a national strategy aimed at creating better conditions for Swedish businesses to be able to attract, recruit and retain international competence.”

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