Sweden Foreign Workers: Increased Salary Threshold
Sweden has introduced a significant change for foreign workers by raising the salary threshold for work permits. This new regulation affects both new applications and extensions for work permits. The decision follows updated salary data from Statistics Sweden, which shows a notable increase in median salaries.
The threshold for foreign workers’ salaries will rise from 13,000 kronor in October 2023 to 28,480 kronor starting June 2024. This increase is nearly 120% in less than a year. Applicants for work permits will need to adjust their financial plans and employment discussions to meet the new requirements.
Impact of the New Salary Threshold for Sweden Foreign Workers
For Sweden foreign workers, this new salary threshold means re-evaluating their job offers and negotiating better compensation. If the proposed increase to 35,600 kronor is approved, workers will face even more challenges. They may need to negotiate higher salaries or find jobs that meet the new compensation standards.
As of June 18, 2024, the updated salary threshold for work permits will be set at 28,480 kronor per month. This amount represents 80% of the median salary, which has increased to 35,600 kronor. The previous threshold was 27,360 kronor based on a lower median salary of 34,200 kronor.
Future Plans for Sweden Foreign Workers and Salary Thresholds
Looking ahead, Sweden plans to raise the salary threshold further. The government intends to set the threshold at 100% of the median salary, with this change proposed to take effect on June 1, 2025. However, there will be exceptions for certain job categories. These exemptions aim to balance the new rules across different sectors.
To assist current permit holders, there will be a one-year grace period. During this time, the existing rule of 80% of the median salary will remain in place. This grace period will last until June 1, 2026, giving foreign workers time to adapt to the new salary requirements.
Applicability of the New Threshold for Sweden Foreign Workers
The new salary threshold will apply to all new work permit applications and renewals submitted from June 18, 2024. Any applications already in process will not be affected by this increase. Applicants should be aware that the salary threshold will be updated annually based on Statistics Sweden’s median salary figures. This means that future applicants must stay informed about potential adjustments to the threshold each year.
Requirements
In addition to meeting the new salary threshold, foreign workers must ensure their salaries align with industry standards or collective bargaining agreements. Even if the salary meets the threshold, it must also be appropriate for the job and sector.
Specific Rules for Seasonal Workers
For seasonal workers in Sweden, there are different rules. Workers on seasonal permits for up to 90 days must meet the old salary requirement of 13,000 kronor per month before taxes. However, these seasonal workers must still follow industry standards or collective agreements, which may be higher than this minimum salary.
Conclusion
The recent changes in salary thresholds for Sweden foreign workers reflect the government’s efforts to adjust immigration policies in line with economic conditions. The nearly 120% increase in the salary threshold from October 2023 to June 2024 is a significant development. The planned future increases will further impact foreign workers, requiring them to stay updated and be prepared for changes.
The new regulations and future plans emphasize the importance of financial readiness and understanding the evolving landscape of work permits in Sweden. Foreign workers and prospective applicants must adapt to these changes to meet the new requirements effectively.
By staying informed and preparing for future adjustments, Sweden foreign workers can navigate the evolving regulations and secure their positions in the Swedish job market.