Tillväxtverket

Short-Time Work Allowance 2021, for the Period July–September

This is where you can learn more about how to apply for the allowance and report short-time working and skills enhancement initiatives for the period July–September 2021. Applications are only being accepted between 3 and 30 November.

It is a good idea to prepare your application as thoroughly as possible before submitting it, so that your application can be processed as smoothly as possible. If you applied previously in 2021 and have not yet received a decision regarding your application, you may still submit an application for the allowance for the period July–September.

This is how to prepare your application

1. If this is the first time you are applying for the allowance, complete our online test

The test will give you some idea of whether or not you are entitled to short-time work allowance for the period July–September.

Complete our online test (information in Swedish)

2. Make sure you have a short-time working agreement with your employees

Short-time working must be provided for in a central/local collective agreement or a separate agreement.

Further information on agreements and agreement templates (information in Swedish)

3. Make sure that the company’s representative can sign the application

Unfortunately, we are unable to process signatures with BankID from multiple applicants. The person signing the application must therefore be authorised to sign on behalf of the company.

It is however possible to share an application with others if you need to collaborate.

What to keep in mind when applying

We will be able to process your application more quickly if it is correctly filled out and has the correct documentation attached.

Information you need to include with your application

The application for short-time working allowance consists of several parts. As you also need to complete the reconciliation statement, your application may take longer to fill out. You can learn more about the information we ask for in the application below.

Background information about your company

Company information for first-time applicants

First-time applicants will be asked to provide information about the company applying for the allowance. You will need to state your:

  • company registration number (10 digits);
  • Swedish Standard Industrial Classification (SNI) code, which you can find using a search tool in the application); and
  • bank account details for payment if you are granted the allowance. Please note that you can only enter a bankgiro or plusgiro number linked to an account belonging to the company on behalf of which you are applying for the allowance.

Companies that have applied previously in 2021 need only check that the information is correct.

Comparison month

The comparison month for short-time working during July, August and September 2021 is April 2021 for all applicants. The change to everyone having the same comparison month has been made so that new employees hired during the crisis will also be able to benefit from the allowance.

Employers are entitled to the allowance for personnel employed no later than April 2021, provided that all other criteria for the allowance are met. Any pay increases awarded up until April 2021 are included in the employee’s regular wage/salary.

Supplementing information for the comparison month

You will need to provide us with information in your application if you want to claim the allowance for employees covered by a short-time working agreement but who were absent for some valid reason during the comparison month. Complete the Excel file (Reporting valid absence Excel, 216.6 kB, opens in new window.) and attach it to your application.

Valid reasons for absence are:

  • sick leave
  • annual leave
  • parental leave
  • care of a child (VAB)
  • care of a close relative
  • illness
  • leave of absence for:
  • trade union assignment
  • studies
  • civil and military conscription
  • political appointments
  • starting a business.

The Swedish Agency for Economic and Regional Growth accepts these reasons for absence as long as the other preconditions for the allowance are satisfied, including that the employee has been employed during the comparison month and returned from his/her absence to the same position and level of employment (or lower). It is also possible to obtain the allowance for new employees who were employed during the comparison month and who are paid in arrears.

General leave of absence is not regarded as a valid cause for absence.

Please note that the Swedish Agency for Economic and Regional Growth may ask you to submit other documentation, such as proof that sick pay has been paid, doctor’s certificates, certification of authorised leave with proof of employment, etc.

Reporting valid absence, Excel Excel, 216.6 kB, opens in new window.

Background Questions

  • You will need to answer some basic questions about your company and business activities along with the situation the company is presently in. The questions require a “yes” or “no” answer. These questions will already be filled in if the company has submitted a previous application during 2021. Please check to make sure the information is still correct.
  • In order to receive the allowance, the company must have suffered temporary, serious financial difficulties caused by circumstances beyond its control. What does “financial difficulties” mean? (Information in Swedish)
  • You are not entitled to the allowance if during the two months prior to the first month or six months after the final month you claim the allowance, the company decides on or executes the payment of dividends or other extraordinary payments, share repurchase or a reduction in share capital or reserve funds to repay shareholders or members. If the company is part of a Group, the same rules apply to the parent company(s) that are part of the Group. However, the company can make Group contributions during the period the allowance is being received.
  • If your company is applying for short-time working allowance for the first time in 2021, and has a payroll cost of at least SEK 400,000 during the comparison month, you will need to attach an auditor’s statement to your application. The auditor’s statement must be signed in writing by an authorised or approved auditor or a registered public accounting firm. The total payroll cost is the remuneration reported by the company in its PAYE tax return for all employees, including those who are not on short-time working. Further information on auditor’s statements (information in Swedish).

Information about employees: short-time working and skills enhancement initiatives

When you apply for short-time working allowance, you must provide details of your collective agreements and employees. If you wish to claim back money for skills enhancement initiatives, you should do so at the same time.

If you have more than 25 employees, you can use our Excel template Calculation Tool. The template is available here (information in swedish).

What you need to include in your application:

  1. Collective agreements and agreement periods.
  2. The employees you are claiming the allowance for.
  3. The periods during which the employees are on short-time working.
  4. If applicable, details of your skills enhancement initiatives.
  5. The signature of an authorised signatory.

Collective agreements and agreement periods

Fill in details of your collective agreements and agreement periods in your application. Short-time working hours must be provided for in a central/local collective bargaining agreement or in a written agreement between the employer and employees.

If you intend to claim for skills enhancement initiatives, these must also be provided for in your central/local collective bargaining agreement or in a written agreement between the employer and the employees. Detailed conditions may also be set out in substitute agreements or sub-agreements linked to the agreement for short-time working.

Further information on agreements and templates for short-time working and skills enhancement agreements (information in Swedish).

Employees

In your application, you need to provide information on your employees and reductions to their working hours.

Normal working hours

Normal working hours are the hours the employer would have worked were they not on short-time working.

Working hours during short-time working

Fill in the total number of hours worked by the employee while on short-time working.

A single day off does not affect how you calculate the employee’s working hours while on short-time working. In other words, if the employee was absent for one day (for example, to care for a sick child) you should count that day as part of their scheduled short-time working.

You only need to provide information about those employees who have been on short-time working during the month in question; for example, if an employee’s hours were shortened during July and August but not during September, you do not need to provide any information about that employee for September. Any absences are to be entered in a separate column in the application.

Example 1:

An employee has worked 6 hours, instead of 8 hours. While on short-time working
they are scheduled to work 6 hours that day.

Example 2:

An employee’s normal working hours are 40 hours per week and they are on short-time working for 4 weeks at agreed level 1 (20%). Their normal working hours for the four-week period are 160 hours and their scheduled short-time working hours are 128 hours.

Scheduled working hours: 8 hours per day, Monday to Thursday

Reduced working hours on Fridays: 8 hours

The employee is off sick on one Thursday during the short-time working period. This absence is not included when calculating short-time working hours: enter the scheduled 128 working hours.

Regular monthly wage/salary

The regular monthly wage/salary refers to the pay that the employee would have received in the absence of you receiving a short-time work allowance. Pay increases received by the employee after the comparison month are not to be included in the regular wage/salary.

If the normal monthly wage/salary is higher than SEK 44,000, the allowance will be calculated based on SEK 44,000, as this is the maximum amount. State the normal wage/salary, even if it is higher than SEK 44,000.

The comparison month for all companies applying for the allowance is April 2021. Monthly wage/salary during short-time working

State the employee’s monthly pay while on short-time working for each month for which you are claiming the allowance.

Their pay is their normal wage/salary minus the pay reduction pursuant to your agreed level of short-time working. Fill in the wage/salary for the month in which it was paid. This applies even if wage/salary was paid in arrears.

If the employee was on short-time working for part of a month, for example from 16 July to 31 July, you will still need to fill in the full monthly wage/salary.

Even if the employee was absent on some days (e.g. to care for a sick child (VAB), etc.) and this has resulted in a pay deduction, you must enter their monthly pay for the scheduled working hours.

Example:

An employee has a regular monthly salary of SEK 44,000.

During one month, the employee has been on level 3 (60%) short-time working. You as an employer had planned to pay 92.5% of their salary, i.e. SEK 40,700.

The employee has been absent with VAB for two days and salary has been deducted accordingly.

You nevertheless fill in “monthly wage/salary under the short-time work arrangement ” as it was planned, in other words SEK 40,700.

Absence due to illness, VAB, annual leave, etc.

If your employees have been absent from work, you must fill this in on your application form.

Learn more about valid and invalid reasons for absence (information in Swedish).

Leave such as paid time off, time off in lieu or taking out flexible working hours

For the purposes of your application, reduced working hours, paid time off, time off in lieu and flexible working hours are counted as being in attendance. This is because any such leave is based on hours earned by the employee and does not change the employer’s costs for the employee.

  • Paid leave in the form of time off in lieu or withdrawals against a flexible working hours account is working hours allocated to a different point in time, normally to compensate for the employee having previously worked extra hours.
  • Permission to attend doctor’s appointments, funerals, etc. is a form of paid leave agreed between the employer and employee for which the same costs accrue to the employer as if the employee had been at work.

Annual leave, on the other hand, is specifically regulated in the Swedish Annual Leave Act (SFS 1977:480) and is a statutory right. This implies that no reduction to working hours and pay may be made for annual leave.

Paid leave other than statutory annual leave is therefore considered to be attendance eligible for the allowance and covered by the same rules on reduced working hours and pay as normal pay and working hours.

Actual reduction in working hours and pay

Actual reduction in working hours

The total of the reduced working hours, divided by the ordinary working hours. The actual reduction in working hours is shown as a percentage and is an average reduction in working hours for the total period.

Actual reduction in pay

Fill in the employee’s wage/salary during short-time working. If the employee was on short-time working for part of a month, for example from 16 July to 31 July, you will still need to fill in the full monthly wage/salary.

Even if the employee was absent on some days (e.g. to care for a sick child (VAB), etc.) and this has resulted in a pay deduction, you must enter the wage/salary for the planned working hours.

How we calculate the allowance

Regular monthly salary (max. SEK 44,000 per month) x part of a month x agreed level x attendance ratio x 98.6%

And where:

  • a “part of a month” equals “days with short-time working” divided by “days of the month”;
  • the “attendance ratio” is “days with short-time work” minus “days absent” divided by “days with short-time working”; and
  • the figure of 98.6% is calculated on the basis that the allowance is to meet 75% of the employer’s costs for short-hours working. In addition to their wage/salary, the employer must also pay the employer’s social insurance contributions amounting to 31.42% and 75% of (wage/salary + employer contributions), corresponding to 98.6% of the regular monthly wage/salary (0.75 x 1.3142 = 0.98565, i.e. 98.6%).

Example:

  • Pernilla has applied for the allowance from 1 July until 30 September.
  • Her regular monthly wage is SEK 22,240.
  • Her working hours have been shortened by 80% during July and August and 60% during September.
  • She has 15 days holiday booked in August.

If we insert these values into the formula for calculating the allowance for a single month as described above, we arrive at:

  • 1 July–31 July (31 days):
  • SEK 22,240 x (31/31) x 80% x ((31 − 0)/31 x 98.6% = SEK 17,543
  • 1 August–31 August (31 days):
  • SEK 22,240 x (31/31) x 80% x (( 31 − 15) / 31) x 98.6% = SEK 9,054
  • 1 September–30 September (30 days):
  • SEK 22,240 x (30/30) x 60% x (( 30 − 0 ) / 30) x 98,6% = SEK 13,157

Companies with more than 25 employees on short-time working

If your application relates to more than 25 employees who are on short-time working, you may submit details of your agreements, employees and short-time working periods using our Calculation Tool July–September.

Calculation Tool July–September (information in Swedish).

Auditor’s statements (where applicable)

For the 2021 allowance, employers with payroll costs for all employees of at least SEK 400,000 during the comparison month are required to attach an auditor’s statement to their application. The following applies to applications in November:

  • If you have previously received the allowance in 2021 and have already been granted an extension for July–September when you received a decision regarding your first reconciliation report, you do not need to submit a new auditor’s statement.
  • Nor do you need to submit a new auditor’s statement with your application for July–September if you have previously received the allowance in 2021 and have not yet been granted an extension. We will contact you if we need an auditor’s statement and you will be given time to submit it.
  • If you have not previously applied for the allowance during 2021 and your payroll is at least SEK 400,000 during the comparison month, you will need to attach an auditor’s statement to your application.

You can find further information about auditor’s statements and templates here (information in Swedish).

Skills enhancement initiatives

As a business owner, you can claim for skills enhancement initiatives attended by your employees while they were off work on short-time working. Skills enhancement initiatives can be an opportunity for companies not only to survive the serious financial difficulties they are now facing, but also a means to invest in skills that can strengthen the company in the short term and long term. For the individual, it can also be an opportunity to strengthen their position, both in the workplace and in the labour market as a whole.

Further information about skills enhancement initiatives

Attach files You must attach copies of the agreements the company has with employees regarding short-time working to your application. If you have a collective bargaining agreement, you must attach both central and local collective bargaining agreements regarding short-time working.

First-time applicants with payroll costs over SEK 400,000

If you are applying for the allowance for the first time during 2021, you need to submit an auditor’s statement. You only need to submit an auditor’s statement if your payroll during the comparison month was in excess of SEK 400,000.

Discrepancies in your application

If there is a discrepancy between the information you enter on your application and the data we have retrieved from the Swedish Tax Agency, an error message will appear. This may be due to one of several reasons. Below you can learn more about what the problem might be and how you can submit the correct information with your application.

Employees are missing from the comparison month

Data from the Swedish Tax Agency shows that one or more employees were not included in the employer’s PAYE declaration for the comparison month, April 2021.

Please note:

  • If you have already been approved for the same employee(s) and period, you should not submit additional documentation. The allowance cannot be paid to sole traders or partners in limited partnerships or trading partnerships.
  • If you do not adjust your application to correct the stated discrepancy, it will take longer to process and approve your claim and the amount you receive may decrease.
  • If you have attached documentation proving that the person(s) in question were employed during the comparison month, you may disregard the abovementioned discrepancy.

Absence for a valid reason

Supplementary documentation

The allowance can be paid for employees who have been absent for valid reasons. You can find is about what constitutes a valid reason for absence during the comparison month on Tillväxtverkets, the Swedish Agency for Economic and Regional Growth, website.

New employees paid in arrears

Supplementary documentation

The allowance can also be paid for persons employed during the comparison month who are paid in arrears.

In such cases, you should submit documentation showing:

  1. that the employee was employed during the comparison month;
  2. that they are paid in arrears; and
  3. their regular wage/salary.

Documentation may be in the form of an employment contract, together with a bank statement and payslip for the comparison month. You also need to submit documentation from the Swedish Tax Agency showing that employer contributions have been paid for the employee in question for the month after the comparison month.

Transfer of employment

Supplementary documentation

One valid reason for an employee being missing from the comparison month may be that their employment contract has been transferred during the transfer of the business.

In such cases, you need to attach:

  1. a statement describing the transfer and information regarding the companies and employees involved;
  2. documentation proving that the business has been transferred, such as a transfer agreement and registration certificate issued by the Swedish Companies Registration Office; and
  3. documentation from the Swedish Tax Agency showing that employer contributions have been paid for the employee for the comparison month.

Payroll information is missing for certain months

Data from the Swedish Tax Agency shows that you have not paid the employees for the months for which you are claiming the allowance. Check that you have paid wages/salaries to the employees for the specified periods. If necessary, adjust the periods for which you are claiming the allowance.

Please note:

  • Tillväxtverket, the Swedish Agency for Economic and Regional Growth, only pays the allowance for employees that have received a wage/salary and for whom employer contributions have been registered for the month in question.
  • If you have already been approved for the same employee(s) and period, you should not submit additional documentation. The allowance cannot be paid to sole traders or partners in limited partnerships or trading partnerships.
  • If you do not adjust your application to correct the stated discrepancy, it will take longer to process and approve your claim and the amount you receive may decrease.
  • If you have attached documentation verifying that you have paid the employees in question for the months for which you are applying for the allowance, you can disregard the aforementioned discrepancy.

Supplementary documentation

If you have paid wages/salaries in the months for which we are currently paying out the allowance, you can submit documentation to verify your payments. Wage/salary payments must have been made in the above months.

Documentation may be in the form of payslips and bank statements together with proof from the Swedish Tax Agency that employer contributions have been registered for those employees for the months in question.

What happens once your application has been submitted?

  • Once you have submitted your application, you will receive a confirmation e-mail and can see on "Mina sidor" (My pages) that your application has a changed status to “Submitted.”
  • An administrator will be processing your application. In the event we need additional information from you, you will be contacted. At the moment, we do not have any information on the length of processing times.
  • If your application is approved, the payment will be disbursed to the bank account you specified in the application. Keep in mind that it may take a few banking days for the money to be credited to the bank account. If your application is not approved, this will be stated the decision.

If you need to supplement your application

If something in your application is incorrect or you need to provide supplementary information, it is important that you do not submit a new application but supplement the one you have already submitted. It might be useful to know that, unfortunately, supplementation may mean that it takes longer to deal with your case.