Additional amending budget: Improved support to companies and reduced employers’ social security contribution for young people

3 February 2021 klockan 16.15

Uppdated 3 February 2021 klockan 16.42

The Riksdag voted in favour of the Government's proposal on a further additional amending budget for 2021 on account of the continued spread of COVID-19. Central government expenditure for 2021 will thus increase by SEK 18.6 billion, mainly due to increased economic assistance to companies.

The proposal includes these measures:

  • The appropriation for support in the event of short-time work will increase by SEK 8.7 billion in 2021. The term "short-time work" refers to companies reducing the working hours of employees by means of lay-offs.
  • It will be possible for companies to receive continued economic assistance in the event of short-time work from December 2020 until June 2021. It will be increased during January, February and March by means of the state assuming 75 per cent of the cost of the reduction in working hours and enabling companies to reduce working hours by up to 80 per cent for their employees.
  • SEK 5 billion will go to increased redeployment support to companies for the period January–February 2021.
  • SEK 4.2 billion in 2021 will go to a new type of assistance in the event of closures. This is a stronger form of redeployment support for companies that have to close down their operations if the Government decides to close down certain businesses as a result of the temporary Pandemic Act or COVID-19 Act.
  • The employers' social security contribution for people between the ages of 19 and 23 will be reduced during the period January 2021 to March 2023. The reduction in the employers' social security contribution had originally been planned to come into force from April 2021 onwards, but has now been brought forward since many of the sectors in which young people work have been severely affected during the pandemic.

The Government's proposal for an additional amending budget means that central government expenditure will rise by a total of SEK 18.6 billion in 2021. Central government revenue is expected to fall by SEK 1.4 billion in 2021 as a result of having brought forward the reduction in the employers' social security contribution for young people.