Introduction
From today, Sweden’s unemployment insurance, known as a-kassan, changes from an hours-based condition to an income-based one. The government calls it the largest reform in four decades, aiming to broaden coverage while unions warn that protections may be eroded and inequality could rise.
How the new rules work
The heart of the reform is the shift to an income-based eligibility criterion. To qualify, you must have earned at least 120,000 kronor in the last 12 months and earned at least 11,000 kronor in four of the 12 months. Once you meet these thresholds, your income history helps determine how long you can receive benefits.
Replacement rates and duration
The replacement rate is stepped based on membership duration. For anyone with at least 12 months of membership, the benefit starts at 80 percent, then drops to 70 percent after 100 days and to 65 percent after 200 days. The design is intended to taper support as a worker transitions back to work.
Cap and real value
The cap for the 80 percent portion has risen from 33,000 kronor to 34,000 kronor. But critics argue that this is not a real rise, because wages have climbed faster than the cap, meaning many high earners in effect receive less protection than before. If the cap had tracked wage growth, it would have been around 39,440 kronor, according to union estimates.
Union reactions and concerns
LO’s critique
LO says the system’s income-based design makes it faster for higher earners to secure coverage, leaving lower earners with a longer wait. The union also cautions that the rapid tapering could hit long-term unemployed workers particularly hard, and that the higher income thresholds may not reflect the financial reality for many families.
Fairness and real-world impact
Beyond the equity question, LO notes that the cap drift reduces real protection. TCO has reported that only about one third of current recipients get 80 percent of their prior income, with even fewer among civil servants. A Novus survey, conducted for TCO, suggests that two of three workers would see a meaningful difference in their finances if they became unemployed, with potential cuts to groceries, housing, and even changes to living arrangements for some.
What this means for workers
In practical terms, that means the reform changes the path to benefits. People with higher past earnings may qualify more quickly and access a longer payout window, while those with lower earnings could face a steeper climb. The overall effect is a trade-off between broader eligibility and the challenge of maintaining a robust safety net in a high-wage, high-cost economy.
Looking ahead
Officials say the reform strengthens the social safety net by standardizing access, while critics warn it could erode protection for vulnerable groups. As the new rules take effect, policymakers, unions, and researchers will monitor actual benefit uptake, the speed of transition, and real-world costs for households across Sweden.
