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Sweden - Compensation & Benefit Legislation

CAPITAL

Stockholm

 

CLIMATE

Temperate in the south with cold, cloudy winters and cool, partly cloudy summers. Subarctic in the north.

 

LANGUAGES

Swedish (note: small Lapp- and Finnish-speaking minorities).

 

LEGAL SYSTEM

Civil law system influenced by customary law. Sweden accepts compulsory ICJ jurisdiction with reservations.

 

CURRENCY

Sweden Kronor (1 USD = 10.3140 SEK as of March 1, 2002)

 

SWEDEN - COST-OF-LIVING

ERI's Relocation Assessor is a recommended source for cost-of-living data.

 

SWEDEN - EMBASSY/CONSULATES

U.S. Embassy at Stockholm

Dag Hammarskjölds Vag 31

SE-11589

Stockholm, Sweden

Telephone: [46] (8) 783-5300

Fax: [46] (8) 661-1964

http://www.usis.usemb.se/

 

Embassy of Sweden at Washington D.C.

1501 M Street N.W.

Washington D.C. 20005

Telephone: (202) 467-2600

Fax: (202) 467-2656

E-mail: info@swedish-embassy.org

http://www.swedish-embassy.org/

 

SWEDEN - HOLIDAYS

 

SWEDEN - LEAVE

Annual Leave: Minimum 5 weeks paid annual leave each year.

 

Maternity Leave: 14 weeks of paid leave (paid for by social security).

 

Parental Leave: 450 days of paid leave: 360 days paid at 75% and 90 days at 100% (paid for by social security).

 

SWEDEN - MINIMUM AGE

The law permits full-time employment at age 16 under the supervision of local authorities. Employees under age 18 may work only during the daytime and under supervision. Children as young as 13 years may work part- time or in "light" work with parental permission. Union representatives, police, and public prosecutors effectively enforce these restrictions.

 

(Section 6.d. Status of Child Labor Practices and Minimum Age for Employment, Sweden - Report of Human Rights Practices, 2001, U.S. Department of State.)

 

SWEDEN - MINIMUM REMUNERATION

There is no national minimum wage law.

 

Wages are set by collective bargaining contracts, which nonunion establishments usually observe as well. Even the lowest paid workers are able to maintain a decent standard of living for themselves and their families through substantial benefits (such as housing or daycare support) provided by social welfare entitlement programs.

 

(Section 6.e. Acceptable Conditions of Work, Sweden - Report of Human Rights Practices, 2001, U.S. Department of State.)

 

SWEDEN - REMUNERATION

ERI's Geographic and Salary Assessors are recommended sources for international remuneration covering 189 countries.

 

SWEDEN - REPORT OF HUMAN RIGHTS PRACTICES (2001, U.S. DEPARTMENT OF STATE)

Section 6 Worker Rights

 

a.  The Right of Association

 

The law entitles workers to form and join unions of their choice, and workers exercise this right. In December the work force consisted of approximately 4.38 million persons, of which approximately 80 percent was unionized. Career military personnel, police officers, and civilian government officials, as well as private sector workers in both manufacturing and service industries, are organized. Most business owners belong to counterpart employer organizations. Unions and employer organizations operate independently of the Government and political parties (although the largest federation of unions has always been linked with the largest political party, the Social Democrats).

 

The law provides for the right to strike, as well as for employers to organize and to conduct lockouts. Within limits protecting the public's immediate health and security, public employees also enjoy the right to strike. The Government generally respects these laws in practice. In March two legal strikes and one illegal strike were reported.

 

Unions have the right to affiliate with international bodies. They are affiliated with the International Confederation of Free Trade Unions and the European Trade Union Confederation among others.

 

 b.  The Right to Organize and Bargain Collectively

 

The law provides for collective bargaining, and workers exercise this right. Cooperation between management and labor tends to be excellent and nonconfrontational. Labor and management, each represented by a national organization by sector (for example retailers and engineering industries), negotiate framework agreements every 2 to 3 years. More detailed company-level agreements put such framework agreements into effect at the local level. New framework agreements were signed during the year, resulting in a 3 percent wage increase per year for 3 years in most cases. Most agreements with labor unions provide for a degree of individualized pay, including merit bonuses.

 

The law provides both workers and employers with effective mechanisms for resolving complaints. The vast majority of complaints are resolved informally. The law protects union officials and members from dismissal or reprisals for official union activities. In some instances, unions even demand collective agreements regardless of the views and union status of employees. In 2000 a government agency, the National Mediation office, began working to strengthen the system of public mediation.   

 

Agreements were reached in 1997 between 12 employer associations and 8 unions representing 800,000 manufacturing employees on steps to prevent strikes and lockouts, such as requiring serious wage negotiations to start 3 months before a collective agreement expires and appointing a mediator if an agreement has not been reached after 2 months. Similar agreements were signed in the municipal sector, in the retail-commercial, and service sectors.

 

There are no export processing zones.

 

 c.  Prohibition of Forced or Compulsory Labor

 

The law prohibits forced or compulsory labor; however, women were trafficked to the country for the purpose of prostitution (see Section 6.f.).

 

The law prohibits forced and bonded labor by children, and there were no reports that such practices occurred.

 

d.  Status of Child Labor Practices and Minimum Age for Employment

 

The law permits full-time employment at age 16 under the supervision of local authorities. Employees under age 18 may work only during the daytime and under supervision. Children as young as 13 years may work part- time or in "light" work with parental permission. Union representatives, police, and public prosecutors effectively enforce these restrictions.

 

The law prohibits forced and bonded labor by children, and there were no reports that such practices occurred (see Section 6.c.).

 

e.  Acceptable Conditions of Work

 

There is no national minimum wage law. Wages are set by collective bargaining contracts, which nonunion establishments usually observe as well. Even the lowest paid workers are able to maintain a decent standard of living for themselves and their families through substantial benefits (such as housing or daycare support) provided by social welfare entitlement programs.

 

The standard workweek is 40 hours or less. Both the law and collective bargaining agreements regulate overtime and rest periods. For workers not covered by a labor agreement, the law stipulates a limit for overtime at 200 hours per year, although exceptions may be granted for key employees with union approval; some collective bargaining agreements put the limit at 150 hours. The law requires a rest period after 5 hours of work but does not stipulate a minimum duration; in practice it is usually 30 minutes. The law also provides all employees with a minimum of 5 weeks of paid annual leave; labor contracts often provide more, particularly for higher ranking private sector employees and older public service workers. Amendments to the labor law in 1997 made it easier for employers to hire workers for limited periods, as well as empowering local unions to agree to exceptions to last-in, first-out laws.

 

Occupational health and safety rules are set by a government-appointed board and monitored by trained union stewards, safety ombudsmen, and, occasionally government inspectors. These standards are very high, making workplaces both safe and healthy in general. Safety ombudsmen have the authority to stop unsafe activity immediately and to call in an inspector. An individual also has the right to halt work in dangerous situations in order to consult a supervisor or safety representative without endangering continued employment.

 

 f.  Trafficking in Persons

 

The law does not prohibit specifically trafficking in persons, although traffickers are prosecuted under other statutes; however, women were trafficked to the country for prostitution and sexual exploitation.

 

The purchase or attempt at purchasing sexual services is illegal. Law enforcement primarily uses laws against pandering and an offense called "placing in distress," which can be used in cases where traffickers lure women from other countries under false pretenses. Traffickers sentenced for pandering can face up to 6 years in prison, but most sentences are for 2 to 3 years. The Government prosecuted 11 cases against traffickers in 1998-99, which resulted in 6 convictions. All of the accused traffickers were Swedish residents with family and personal ties to Central and Eastern Europe and the Middle East.

 

Trafficked women in general do not receive temporary residence permits; in some cases they are deported immediately. Victims of trafficking rarely are detained; however, at times they are held for a short period prior to deportation by the police or in a camp run by the Migration Board. The Government provides funding to NGO's and international organizations that combat trafficking worldwide. For example, the Government provides funds to the Foundation of Women's Forums to combat trafficking in women in the Nordic and Baltic nations by creating interactive networks that link NGO's and research institutions that deal with prevention and the rehabilitation of trafficked women.

 

SWEDEN - STANDARD WORKWEEK

The standard workweek is 40 hours or less.

 

Both the law and collective bargaining agreements regulate overtime and rest periods. For workers not covered by a labor agreement, the law stipulates a limit for overtime at 200 hours per year, although exceptions may be granted for key employees with union approval; some collective bargaining agreements put the limit at 150 hours. The law requires a rest period after 5 hours of work but does not stipulate a minimum duration; in practice it is usually 30 minutes.

 

(Section 6.e. Acceptable Conditions of Work, Sweden - Report of Human Rights Practices, 2001, U.S. Department of State.)

 

SWEDEN - SOCIAL SECURITY

Social Security Office of International Programs:

 

http://www.ssa.gov/SSA_Home.html

 

SWEDEN - TOTALIZATION AGREEMENT WITH U.S.

NOTE: Sweden provides old-age, survivor, and disability benefits through two separate programs: A "basic" pension program based on how long the worker lived in Sweden and a "supplementary" pension program based on how long the person worked and the amount earned.

 

Effective Date of Agreement: January 1, 1987.

 

Coverage and Social Security Taxes - Sweden:

 

For employees sent by a Swedish employer to work in the U.S. for five years or less, taxes and coverage fall to Sweden. If the employee is sent to work in the U.S. for more than five years, was hired in the U.S., or is an U.S. citizen, taxes and coverage fall to the U.S.

 

Coverage and Social Security Taxes - U.S.:

 

Under the Swedish system, employers (but not employees) must pay Social Security taxes. Employers of workers sent from the U.S. to work in Sweden for five years or less will be exempt from paying social security taxes to the Swedish old-age, disability, and survivors benefit programs, but they will not be exempt from paying taxes to other Swedish benefit programs such as sickness and work injury insurance.

 

Certificate of Coverage Request: 

 

To establish exemption from coverage under the U.S. Social Security system, the employer in Sweden must request a certificate of coverage from the Swedish Regional Social Insurance Office for the region in which the Swedish employer is located, providing the same information required for a certificate of coverage from the U.S. except that the employee's Swedish social security number should be shown rather than the U.S. number.

 

Minimum Credits Needed:

 

An employee without enough work credits to qualify for Swedish benefits, but with at least one year of coverage under the Swedish system, may combine Social Security credits from the U.S. and Sweden to meet eligibility requirements.

 

Summary of Social Security Benefits:

 

Retirement or old-age benefits are payable (full pension) at 65. Disability benefits under the basic program are payable at 16 to 65, if at least 50% disabled and residency requirements are met; same benefits under the supplementary program with no nationality/residence requirements (three years' work required). Under family benefits there are no provisions to the spouse; however, a wife's supplement to the basic pension is payable if the marriage has lasted at least five years and there is little or no other income; and a child's supplement to the basic pension may be paid for children up to age 16. The basic widows' pension survivor benefit is payable if the widow is at least age 50 at husband's death, has a child in care, and the marriage lasted at least five years. Under the supplementary plan, the widow's pension is payable based on husband's eligibility, there must be a child in care, or the marriage must have lasted five years and been contracted before husband reached age 60. Survivor benefits are paid through the basic plan to children under 18, and under the supplementary plan to children under 19. There is no provision for a lump-sum death benefit.

 

Additional Information: For specific information on Sweden's Social Security program, visit any Social Security office in that country, or write to:

 

National Social Insurance Board

Lagbyran

S10351 Stockholm

 

See Totalization Agreements