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Short-Time Work Allowance
Short-Time Work Allowance was one of the largest crisis supports during the corona-pandemic. The support meant that employers could reduce the working hours of the employees and receive support from the state to cover a large portion of the costs.
It is no longer possible to apply for the short-term work allowance
The last day for application for the short-time work allowance for July-September 2021 was November 30.
Support for Short-time work allowance is now available at the Swedish Tax Agency
From 1st of April 2022, it is The Swedish Tax Agency that handles ordinary support for Short-time work allowance. All applications received by The Swedish Agency for Economic and Regional Growth up to and including 31 March 2022 are handled by The Swedish Agency for Economic and Regional Growth until they are closed. Read more and apply for support from the Swedish Tax Agency.
Basic preconditions for being entitled to the financial support
- The employer must be registered with the Swedish Tax Agency as an employer during the comparison month and when the application for preliminary financial support is being reviewed.
- The financial support is available to both employers who are legal entities and natural persons who conduct a business enterprise or similar activity. Owners/employers are encompassed within the programme, and this includes limited liability companies, charitable/non-profit associations and foundations. A sole trader in a sole proprietorship, and certain governmental authorities, are not eligible to receive the financial support.
- Eligibility further requires that the company has suffered temporary, serious financial difficulties caused by circumstances beyond its control.
- It is only possible to obtain financial support for employees who were employed by the employer during all or part of the comparison month with the same or higher level of employment as during the month financial support is received for and for whom the employer was obligated to pay employer’s social insurance contributions pursuant to the Swedish Social Services Act (SoL) for the month financial support is received for.
- The company must have made efforts to reduce its labour costs
- The company may not be insolvent, under reorganisation nor subject to an obligation to prepare a Balance Sheet for liquidation purposes.
- The company may not have outstanding tax and/or employer contribution liabilities that have been submitted to the Swedish Enforcement Authority for collection. Preliminary financial support may not be granted to an employer who has debts relating to recovery of support provided as a short-time work allowance that has been submitted to the Swedish Enforcement Authority for collection.
- The company must have entered into an agreement for short-time work with its employees.
- The working hours and pay from employment must be reduced in accordance with the agreement on short-time working.
- The employer, or anyone with significant influence in the business operations, may not be subject to an injunction on engaging in business activities.
- During the months of financial support, the two calendar months immediately preceding the first month financial support is based on or the six calendar months immediately following the last month financial support is based on, the company may not decide to pay dividends or distribute dividends, or other extraordinary compensation, decide or engage in the acquisition of its own shares or decide to or effectuates a reduction of the share capital or reserve fund for repayment to the shareholders or members.
Important things to know before applying for a short-time work allowance in 2021
Your company
The financial support applies to employers that are legal entities or who are natural persons engaged in a business enterprise or similar activity and are registered as an employer with the Swedish Tax Agency during the comparison month and who are also registered as such when the application for preliminary financial support is being reviewed.
This financial support is not available to:
- The central government entities, Regions, municipalities or local municipal federations.
- Limited liability companies, partnerships, associations or foundations over which the central government, a Region, municipality or local municipal federation has controlling influence (ownership), unless the activities do not relate to commercial business activities.
Employees
The financial support covers only those who were employed at the time of the comparison month.
The support applies to employees for whom the employer has been obligated to pay employer’s social insurance contributions during the month financial support is received for.
Time not working
The employer manages and distributes the work during the working hours.
During the time the short-time work allowance for reduced working hours is being received, the employees are obligated to be present at the workplace when the employer requests this. Otherwise, the employees can use their time not working as they choose, unless provided otherwise for in local agreements, for example as it concerns skills enhancement initiatives or outside activities/side gigs.