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Swedish inquiry to conclude on median salary threshold for work permits

Sweden's migration minister will tomorrow receive recommendations on how to implement the planned median salary threshold for work permits, opening the way for it to come into force by the start of next year.

Swedish inquiry to conclude on median salary threshold for work permits
Nurses and other health workers are liable to fall beneath the median salary threshold. Photo: Jessica Gow/TT

The Inquiry on a needs-based work permit system is set to deliver its conclusions to Maria Malmer Stenergard at a press conference at 2pm on Thursday afternoon, the minister’s press secretary Erik Engström, confirmed, although he said the exact time of the press conference might still change. 

“We are not going to have a list of professions in our conclusions,” the inquiry’s secretary, Ulrika Mossberg, told the Local. “We will propose a system which can determine how certain professions, which do not have a particularly high salary but which are still required, can be excused from the salary requirement.” 

Sweden’s government changed the instructions given to the “Inquiry on a needs-based work permit system” in February last year, calling for it to develop “proposals for measures that tighten the conditions for labour immigration”, with the starting point that work permits should in normal cases “only be granted for work which has a salary level equivalent to the median salary”. 

Sweden’s median salary was 34,200 kronor in 2022, meaning the new proposal will make the minimum salary for a work permit significantly higher than the the 27,360 kronor threshold which came into force last November. 

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The inquiry had been launched by the former Social Democrat-led government in June 2022, with a remit to look into reinstating the system of labour market testing, under which unions worked with employer organisations to agree a list of skills and jobs which are in demand. 

Mossberg said that the terms of the inquiry’s instructions meant that its chair, the judge Ann-Jeanette Eriksson, could not question the government’s proposal to raise the minimum salary to the median salary. 

“It should be close to the median salary,” she said, “but maybe we have some small possibility to suggest minor adjustments.” 

While representatives from the Justice Department have been part of a group of stakeholders kept briefed on the inquiry’s progress, Mossberg said that the press conference would mark the first time Malmer Stenergard will have seen the recommendations in full.     

EXPLAINED: How a new law gets made in Sweden

Once the inquiry is delivered, it will open the way for the government to push forward with its plans to bring in a median salary for work permits, drafting proposals which will then be sent out to consultation before a bill is submitted to parliament. 

The new work permit salary threshold is likely to come into force in early 2025. 

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SPOTIFY

Taxes, schools and housing: Three reasons Spotify staff may reject Sweden

Spotify's HR boss has said lower taxes, better schools and available housing are needed to stop a 'skills exodus' from Sweden.

Taxes, schools and housing: Three reasons Spotify staff may reject Sweden

High taxes on share payouts, low-quality schools and Stockholm’s housing shortage are the main factors making it harder for Spotify to recruit foreign talent to Sweden, the streaming giant’s HR boss, Katarina Berg, told Swedish news agency TT in an interview.

She called it a “skills exodus” which pushes not only foreign workers, but even Swedes to move abroad.

Stockholm remains the company’s HQ, but today it employs more people in New York, where there’s a greater pool of skilled engineers, Berg said. Engineers make up around 50 percent of Spotify staff, and Sweden’s homegrown talent isn’t enough to fill those positions.

Almost half of Spotify’s Sweden-based staff are foreigners from 76 countries around the world, with the top nationalities being Brazil, the UK, the US, India, France, Russia, Iran, Italy, Spain and Germany.

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One of the perks that Spotify uses to attract people to the company is a share-based rewards programme that employees can take part in. But Berg said that Sweden’s high taxes on stock incentive plans cancel out a lot of the benefits that such a scheme offers.

“Depending on where in the world you work, you could get taxed 17 percent, 33 percent – or 56 percent, like in Sweden. Of course that could determine where an employee wants to work. You don’t choose Sweden then,” she said.

The housing shortage and lack of elite schools, in particular senior high schools, are also key factors, Berg argued.

“We get a lot of families who come here. They settle down. They want to stay here. They like the Swedish philosophy, with quite a lot of parental leave, another type of holidays and balance in life. But then when their children get so big that they need their grades to apply to a university somewhere, perhaps a US college, our Swedish schools are not up to scratch,” she said.

What are the positives and negatives about working in Sweden? Let us know in the comments.

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