Tillväxtverket

Short-Time Work Allowance 

Note that we will update the FAQ on an ongoing basis as we have new information.

Short-time working means that employers can reduce their employees’ working hours and receive financial support from the central government to compensate for a significant part of the costs for retaining the employee.

This form of financial support has not existed previously and we are urgently working to get everything set up to make it available. We will provide additional information on an ongoing basis as it becomes available.

Starting 7 April, it will be possible to apply for the financial support, however it will be retroactively applied to as early as from 16 March. All applications received prior to 7 April will be disregarded.

The short-time work allowance programme will remain in effect throughout 2020.

This is how you as a business owner can prepare yourself

You as a company can prepare yourself by ensuring that you have the possibility for short-time working in your central and local collective bargaining agreement.

Employers whose employees are not working under a collective bargaining agreement must instead sign an agreement for short-time working with at least 70 percent of the employees at the operating unit.

How can I enter into such an agreement?

What are the steps to complete the application process?

The application opens 7 April and will consist of a few simple steps.

What are the steps required to complete the application process?


This is how the costs for a reduction in pay and working hours are apportioned. (The salary ceiling is SEK 44,000 per month)‌

Level

Reduced working hours

Reduced wages

Employer

State

Employer costs

1

20%

4%

1%

15%

-19%

2

40%

6%

4%

30%

-36%

3

60%

7.5%

7.5%

45%

-53%

Click here for an image that shows the apportionment of costs.opens in new window

Click here for an image that shows the percentage apportionment.opens in new window

See the calculation example under the heading “How are the costs for a reduction in pay due to reduced working hours apportioned in 2020?”

Questions and answers about the short-time work allowance

NOTE! Additional information can be found on the Swedish webpage on the short time work allowance. New Questions and Answers added will be posted in English as soon as possible, although some delay is inevitable.

Swedish webpage on the short-time work allowance

About the short-time work allowance

What does short-time working mean?

Short-time working means an employee’s hours are cut, i.e. where a reduction in regular working hours occurs due to a partial release from work, such as unpaid leave, is introduced for a limited period of time as allowed for under a central collective bargaining agreement (or - in the absence of a collective bargaining agreement - on the basis of an agreement with the impacted employees under certain preconditions). The wages received will therefore be slightly lower than the regular wages the employees have been receiving.

Short-time work is work where the working time is shorter than the regular working time, where partial work release is introduced with the support of a collective agreement

The State support means that the employer’s personnel costs can be reduced by one-half at the same time as the employee will receive 90 percent of his or her wages. The temporary increase in the State's share of the costs over the course of 2020 makes the system more favourable to both employees and employers.

Why is the short-time working allowance being introduced now?

The objective is for companies impacted by an external unforeseen crisis such as the outbreak of COVID-19 to have the financial means to be able to retain their personnel and to be able to gear up quickly again when the situation turns around.

Might it occur that your funding for the short-time work allowance will run out, where our company will not be able to access this and take advantage of this programme?

The scenario you mention cannot occur; there is no overall limit to the funds. The financial support for short-time working an entitlement support for those companies that fulfil the criteria in the regulations to receive the support, and funds will be available to finance all requests approved.

Who is eligible to apply

Who can apply for compensation under the short-time work allowance programme?

Companies that can show temporary and serious financial difficulties in coping with the challenges that have arisen in the wake of the COVID-19 pandemic. Thus the difficulties must have been caused by a relationship outside of the employer’s control and specifically negatively impacting the company’s business operations.

All employers, with the exception of certain governmental entities, may receive support in the event of short-time work if the requirements for the support are fulfilled.

What does it mean that an employer who is in bankruptcy/insolvent is ineligible to receive the support?

A fundamental precondition for being eligible to apply for support for the short-time work allowance is that at the time of filing the application the employer is not in bankruptcy/insolvent, nor subject to an obligation to prepare a Balance Sheet for liquidation purposes, nor undergoing restructuring.

Being in bankruptcy/insolvent means that the company is incapable of paying its debts and that this ability is not merely temporary.

A Balance Sheet for liquidation purposes must be prepared when there is reason to assume that the company’s equity is less than half of its registered share capital.

Which employers can take advantage of the short-time work support?

The support applies both to employers who are legal entities or natural persons, and conduct a business enterprise.

However, the support does not apply to:

  • The central government, county councils, municipalities and local government associations,
  • limited liability companies, partnerships, associations and foundations over which the central government, a county council, municipality or association of local authorities has controlling influence (ownership), unless the activities relate to commercial business activities; and
  • employers whom their activities are primarily financed from public funds.

Are sole traders / gig workers able to obtain the financial support?

You are not entitled to this financial support if own the business and your form of company is a sole proprietorship. However if you are the sole employee of any other form of company and all other preconditions are fulfilled, you may receive the financial support.

However, these business owners are critically important to Swedish enterprise and economic activity. We at Tillväxtverket, the Swedish Agency for Economic and Regional Growth, are investigating and preparing information about how it is impacting Swedish business and industry, and we are engaged in a dialogue with our mandator, the Government of Sweden, proposing measures to mitigate the difficult circumstances for self-employed persons who are suffering financial consequences from the coronavirus pandemic.

See additional information under the heading "Which employees are encompassed within the short-time work allowance?"

Can staffing agencies receive support under this programme?

Staffing agencies are encompassed within the possibility of applying for support from 16 March to 31 December 2020.

Can companies that are disbursing dividends or who have made a disbursement of dividends be eligible for the support?

Tillväxtverket, The Swedish Agency for Economic and Regional Growth, is of the understanding that it is inappropriate for a company to be paying out large amounts in dividends and at the same time to be taking advantage of the support from the State in the form of the short-time work allowance.

If we see that a company that has received the support is behaving in such a manner that it clearly appears not to be facing a difficult financial situation, we have the possibility to adjust the support with the reconciliation that occurs after the support has been granted.

Is it only Swedish employers who are eligible to receive this financial support?

The financial support is only available to companies/organisations registered in Sweden and for those of their employees it pays an employer social insurance contribution for in Sweden.

About introducing short-time working

What are the requirements to be eligible for the short-time work allowance?

• The possibility for short-time working must exist within their central and local collective bargaining agreement.

• In the event the company is not encompassed within a collective bargaining agreement, at least 70 percent of the employees in the operating unit must consent to and participate in the short-time working. The reduction in working hours and wages that has been agreed upon must be the same for all participating employees within the operating unit.

• The employer must have made use of other available measures to reduce its labour costs. Such measures may involve making changes to the scheduling of work shifts plus the use of other measures to reduce labour costs, such as the dismissal of staff who are not employed as permanent employees and who are not regarded as being critical to the business operations, for instance consultants, leased personnel, or temp staff. Thus in the assessment, the employer must take the role and position of the employee in the company into consideration. Even consultants and leased personnel may be critical to the operations of the business activities and there is no general requirement to lay off consultants or leased personnel. The assessment may be made on a case-by-case basis taking the particular circumstances of the employer concerned into consideration.

• Companies that at the time of the application are under the obligation to prepare a Balance Sheet for liquidation purposes, undergoing restructuring, or are in bankruptcy/insolvent are ineligible to receive the support.

There are three fixed levels of reduction in working hours: 20%, 40% or 60%, which means reduced costs of 19%, 36% and 53% respectively for the employer in the three different cases. It is only in the case of a reduction of working hours within these levels that the short-time work allowance will be available.

You can find a table for the apportionment of the costs under the heading "How are the costs for a reduction in pay due to reduced working hours apportioned in 2020?"

Who decides on the introduction of short-time working, and who decides when to end the short-time working?

The employer makes decisions concerning both the introduction and withdrawal of short-time working. The circumstances at this occasion should be clarified in the local collective bargaining agreement, or alternatively an agreement with 70 percent of the employees in the situation where a there is no collective bargaining agreement.

Is participation voluntary for employees?

Partly. The collective bargaining agreement governs if this applies. Otherwise, an approval and consent is required in an agreement with the respective employees.

How can I enter into such an agreement?

If you as an employer have signed a collective bargaining agreement and want to be able to utilise the option of short-time working, you will need to negotiate this with the trade union.

At this stage now you can inform the trade union and call for a co-determination in the workplace negotiation and then reach an agreement with the trade union concerning short-time working, provided that there is a provision in your central collective bargaining agreement concerning short-time working. Contact your employer’s organisation for more info about this!

Employers whose employees are not working under a collective bargaining agreement must instead sign an agreement for short-time working with at least 70 percent of the employees at the operating unit. The agreements can only be entered into when the employees have been temporarily laid off or otherwise paid less due to reduced working hours. Such an agreement must state which employees it encompasses and the fixed percentage the working hours are to be reduced by (according to applicable levels).

The agreement may be entered into so that it will apply retroactively.

Tillväxtverket, The Swedish Agency for Economic and Regional Growth, has prepared a suggested agreement template. However this is only available in Swedish.

Draft agreement template in Swedish - under the heading “Hur tar jag fram ett avtal?”

To fill out the form, first download it to your computer. Then open it in Adobe Acrobat and fill in the information.

Adobe Reader can be downloaded for free from here .external link, opens in new window

It is also possible to download the Adobe Reader app from Google Play Store or Apple’s App Store.

What does it mean that is possible to establish an agreement for short-time working with retroactive effect?

This means that what is agreed upon applies from a specified date, even if that date was prior to when the agreement was signed.

Can personnel who have been given notice of termination or actually laid off be included in the agreement for short-time working?

Pursuant to the ordinary legislation, financial support can only be obtained for personnel who have been given notice of termination, however during the exemption period 2020, this is also possible for also for personnel whose employment has been terminated. Personnel who have been given notice of termination and personnel laid off should be included in the agreement on the same terms and conditions as other employees.

If all of the employees do not fall within one single central collective bargaining agreement, is the employer required to have multiple agreements?

No, this is not necessary. In practice, the collective bargaining agreement applies to all employees. It does not matter if some of the employees are not a member of a trade union or if they belong to different union with which the employer does not have a collective bargaining agreement with.

Is it possible to have different percentages of short-time working for different groups or individual employees?

The rules vary, depending upon whether one is encompassed within a collective bargaining agreement in effect or not.

If there is a central collective bargaining agreement in effect, the application of short-time working and which employees are to be covered by it is governed in a local agreement. Which employees are encompassed within the financial support and the extent to which working hours and wages are reduced is governed by this local agreement.

Therefore it may be different between different groups of employees.

In the event the company is not encompassed within a collective bargaining agreement, at least 70 percent of the employees in the operating unit must consent to and participate in the short-time working. The reduction in working hours and wages that has been agreed upon must be the same for all participating employees within the operating unit.

Is it possible to change the scope after some time, or even return to normal working hours?

Yes, it is possible for the employer to change the scope of short-time work. This should be governed in a new local collective bargaining agreement (or an agreement with the participating 70 percent of the employees in the absence of a collective bargaining agreement). Similarly, it is possible to return to regular working hours. This will affect the degree of financial support received.

How long can a company receive the support?

An employer may receive the support for a period of six months, with the possibility of extension for an additional three months. After this period, there will be a waiting period of 24 months from the date of Tillväxtverket’s, the Swedish Agency for Economic and Regional Growth’s, approval of the financial support. In addition, the total time period the support is received may not exceed 24 calendar months over a period of 36 calendar months.

Who will be paying the salary to those who are on short-time working?

The employer pays the applicable reduced amount of the salary to the employee. The financial support from Tillväxtverket, the Swedish Agency for Economic and Regional Growth, is granted to the employer, not to the employee.

Can employees do whatever they want with the time they are released from working?

During the time the short-time work allowance is being received, the employees are obligated to be present at the workplace when the employer requests this. In general, they have unrestricted control over their time they are not working, unless stipulated otherwise in a local agreement, for example with regard to in-service training/skills development initiatives or secondary employment/side gigs.

Can the employer require the employee to work more hours than what was agreed upon in the agreement for short-time working?

No, the employer may not require an employee to work more than the agreed number of hours per week. The short-time work allowance is intended to support the costs the employer incurs for reduced working hours. If the employer requires the employee to work the hours which the financial support relates to, this would be in violation of the regulations governing support, and the employer would then be required to repay the allowance.

How are the remaining working hours allocated?

The employer manages and distributes the work during the working hours. The reduced hours are calculated on the basis of a calendar month.

What are the possibilities of organising skills development initiatives during the time released from work?

Tillväxtverket, The Swedish Agency for Economic and Regional Growth, looks favourably upon skills development efforts during the time released from working, considering that business sector’s supply of skills and expertise is crucial for growth from a long-term perspective.

The allowance for short-time working is paid out provided that the hours are not regarded as working hours. Thus the local parties have the possibility to agree that skills development initiatives will be conducted during short-time working. For example, it is possible to arrange for internal or external training or educational courses, sitting next to a co-worker and learning from them, or working on validation of skills/expertise.

Is it possible for the employer to introduce short-time working and then dismiss the staff? Or on the other side of the coin, could the employer lay off staff and introduce short-time working for them?

Yes, according to the exception rules for 2020, it is fully possible to receive financial support even during the notice period for personnel who are laid off for whom short-time working has been introduced. In the same way, it is also possible to introduce short-time work in 2020 for employees that have already been laid-off. However, according to the ordinary rules, the financial support cannot be paid during the notice of termination period.

Which costs is possible to receive the financial support for?

Which employees are encompassed within the short-time work allowance?

  • The allowance encompasses those who were employed 3 months prior to Tillväxtverket’s, the Swedish Agency for Economic and Regional Growth’s, approval of the application.
  • The support applies to employees for whom the employer has been obligated to pay employer’s social insurance contributions during the month the support is received.
  • Employees belonging to the employer’s family are not eligible under Section 11 of the Swedish Act (2013:948) on Support Related to Short-Time Working (Lagen om Korttidsarbete). Tillväxtverket has made an interpretation in this regard that the only employers who can be considered to have a “family” in the context of the law are sole proprietorships/self-employed persons, due to that only these are natural persons. This is a broad interpretation against the background of the purpose and intention with the new short-time working allowance system and the very exceptional situation that now prevails. The interpretation means that employed owners and employees belonging to their family may also be encompassed within the system, with the exception of the sole proprietorship form of company. (However if a sole proprietorship has any employees other than the owner, these employees are encompassed within the short-time work allowance programme.) That the other criteria for support are fulfilled remains a prerequisite for receiving the financial support.

This financial support for short-time working is based on the Swedish Act on Support Related to Short-Time Working (Lagen om Korttidsarbete), which encompasses companies with employees. All of these business enterprises are critically important to Swedish trade and industry. We at Tillväxtverket are investigating and preparing information about how it is affecting Swedish business and industry, and we are engaged in a dialogue with our mandator, the Government of Sweden, proposing measures to mitigate the difficult circumstances for all companies and business owners that are suffering financial consequences from the coronavirus pandemic.

Can I get support for personnel who have been given notice of termination or have been permanently laid off?

Yes. Under the ordinary legislation, support can only be obtained for personnel who have been given notice of termination, however during the exemption period 2020, this is also possible for also for redundant personnel.

Can owners employed by their own company receive financial support?

Everyone except owners of a sole proprietorship are encompassed within the possibility of applying for support. The owners/employers are encompassed within the programme, and this includes limited liability companies, partnerships, charitable/non-profit associations and foundations.

This financial support for short-time working is based on the Swedish Act (2013:948) on Support Related to Short-Time Working (Lagen om Korttidsarbete), which encompasses companies with employees and thus does not cover companies that are sole proprietorships.

However, these business owners are critically important to Swedish enterprise and economic activity. We at Tillväxtverket, the Swedish Agency for Economic and Regional Growth, are investigating and preparing information about how it is affecting Swedish business and industry, and we are engaged in a dialogue with our mandator, the Government of Sweden, proposing measures to mitigate the difficult circumstances for all companies and business owners that are suffering financial consequences from the coronavirus pandemic.

Is it possible to lay off personnel who are employed on a permanent basis, while other parts of the workforce are on unpaid leave or otherwise encompassed within the short-time working rules?

Yes, it is entirely possible. Ordinary seniority rules must be followed.

How are the costs for a reduction in pay due to reduced working hours apportioned in 2020?

This is how the costs for a reduction in pay and working hours are apportioned.‌

Level

Reduced working hours

Reduced wages

Employer

State

Reduced employer costs

1

20%

4%

1%

15%

-19%

2

40%

6%

4%

30%

-36%

3

60%

7.5%

7.5%

45%

-53%

Click here for an image that shows the apportionment of costs.opens in new window

Click here for an image that shows the percentage apportionment.opens in new window

The support is intended to correspond to 75% of the employer’s costs after the reduced working hours.

The basis of calculation is ordinary salary (or wage for hourly employees) excluding the employer’s social insurance contributions, however to still take the statutory employer’s social insurance contributions of 31.42% into account, the share of support will be 98.6%, i.e. 75% of 1.3142 = 98.565%

Examples of calculation of provisional support for one month:

In this case, the employer and employees have agreed that the staff should reduce their working hours by 60%.

  • Engineer Sara’s regular salary is SEK 60,000 per month, however the support calculation has a cap of SEK 44,000.
  • The preliminary support for Sara will be SEK 44,000 x 60% x individual working ratio x 98.6% = SEK 26,030.
  • Karl’s regular salary is SEK 30,000 per month.
  • The preliminary support for Karl will be SEK 30,000 x 60% x individual working ratio x 98.6% = SEK 17,748.

The individual working rate is 1.00 for a person who works full-time and has no absences from work during the period the support is being made available.

For example, if a person has time off 2 days in a month consisting of 20 working days, the individual working ratio is (20 – 2) / 20 = 18 / 20 = 0.90, i.e. 90%.

Is there a ceiling on the maximum number of employees that an employer can receive support for?

No, there is no ceiling.

Can this financial support be combined with other types of support?

As a general rule, the financial support for short-time work does not affect the possibilities to obtain other types of support.

Is there a salary cap for the short-time work allowance?

The support is calculated based the employee’s regular base salary, up to a maximum of SEK 44,000 per month. This also applies to employees whose salary is more than SEK 44,000. Even when as it applies to the percentage reduction in salary, the support is calculated on a salary of a maximum of SEK 44,000 per month.

In addition, the amounts are not governed by law and therefore may be agreed up between the labour market parties.

Is an increase in salary or wages that became effective after the comparison month taken into regard here?

No. The base salary or hourly wage from the comparison month applies.

What is the maximum amount of financial support possible to obtain per employee/per month?

The maximum amount financial support may be is SEK 26,030 per person/per month. This is the amount if the regular base salary is SEK 44,000 or more and the reduction in working hours is 60%.

Calculation example:

The employee Stina is a full time employee (i.e. working 100% of full-time employment) with a monthly salary of SEK 60,000.

With short-time working, the parties have agreed between themselves that Stina will only work 40% of her regular time, i.e. a 60% reduction in working hours. (There has been no absence due to illness, taking of annual leave days nor parental leave during the month the financial support is received for).

Stina has a salary that exceeds the ceiling amount. The employer may only use the figure SEK 44,000 to calculate the amount of financial support.

The support is intended to correspond to 75% of the employer’s costs after the reduced working hours. The basis for the calculation is the ordinary base salary (or wage for hourly employees) excluding the employer’s social insurance contributions, however in order to still take the statutory employer social insurance contributions of 31.42 percent into account, the share of the financial support will be 98.6 percent, i.e. 75 percent times 1.3142, which equals 98.565 percent.

Calculation of the financial support: SEK 44,000 x 0.6 x 1 x 0.986 = SEK 26,030

Explanation: SEK 44,000 x 60% reduced working hours x 100% presence during the shortened working hours x 98.6% in compensation level = SEK 26,030 in financial support.

SEK 26,030 per month is also the maximum amount of financial support per employee.

Stina’s reduced salary is based on the ceiling amount of SEK 44,000 and will – unless agreed otherwise between the parties – be reduced by 7.5% of 44,000, i.e. SEK 3,300.

Are the levels of financial support for short-time working affected by the announced reductions in social insurance contributions?

No, the financial support levels are not affected by these. Nor are they affected by the fact that certain groups have a lower employer’s social insurance contribution even with the current rules in effect.

What about employees who receive unemployment benefits or a recruitment incentive from Arbetsförmedlingen, the Swedish Public Employment Service?

Short-time working does not affect unemployment benefits or recruitment incentives received via Arbetsförmedlingen, the Swedish Public Employment Service. Unemployment benefits is not financial support to business enterprises, but rather financial support linked to an individual.

Tillväxtverket, The Swedish Agency for Economic and Regional Growth, is aware that the combination of short-time working and employment support may result in a negative wage cost.

How are ordinary salaries calculated for those who have, for example, have an unsocial working hours allowance or commission-based wages?

Ordinary salary is the regular cash payment that would have been disbursed to the employee during the month for the calculation of financial support if he or she had not participated in short-term working.

Regular salary paid means such compensation and benefits that are normally part of the monthly salary and would be paid but for the employee’s participation in short-time working. For example, it may normally occur that the employee receives payment for unsocial working hours (allowances for inconvenient working hours, or supplements for shift work), and to the extent that they would have in fact been earned during the relevant month. Commissions that are regularly paid every month are included.

Can this financial support also be received for fixed-term employees?

Yes, the financial support may apply to fixed-term employees if they have been employed during the comparative month and if the employer is assessed have fulfilled the basic requirements that exist for the support in general, for instance having taken measures to reduce personnel costs.

Is the sickness benefit qualifying income affected by the reduced salary?

No, during the short-time working, the sickness benefit qualifying income (SGI) is protected. However, the employee should inform Försäkringskassan, the Swedish Social Insurance Agency, that they are participating in short-time working when applying for a social insurance benefit.

Is the pension affected by the reduced salary?

Yes, the pension is affected. However it is estimated that this will be marginal, due to that the short-time working is only for a brief period of time over the course of one’s working life.

Does the employer receive financial support during the employee’s absence due to illness, parental leave or annual leave?

The financial support provided the employer will be calculated based on the employee’s not being on leave or otherwise unavailable for work. What the financial support reimburses the employer is for hours worked. Illness, parental leave and annual leave are absences from work and are not included in the financial support.

Can the employer receive financial support, let’s say for 60%, but have the employee take a full 100% unpaid leave?

The legislation fully allows the employer to make a temporary layoff reducing the number of the employee’s working hours to zero. However the short-time work allowance is payable for a maximum of 60% of the working hours.

Can I hire additional employees after I have introduced the short-time working?

Employers shall, to the fullest extent feasible, staff the needs within the company with employees participating in the short-time work allowance programme.

On the other hand however, if there is a true need for a certain type of skill or expertise that none the employees whose work hours have been reduced have, for example due to that an individual with a business-critical expertise has quit, it can however be necessary to recruit and hire a new person. However, the new employee is not encompassed within the short-time work allowance programme.

Does the financial support for short-time working also apply to those only working part-time?

Yes. In such cases the reduction in working hours and salary paid is to be calculated on the basis of the extent of the part-time work (percentage of full-time) and the regular salary they would be paid for the part-time work.

What this means is that if an employee works part-time at 50 percent of full-time and receives a reduction in working hours of 60 percent, they will then be working 20 percent of a full-time job.

Are “red days” (holidays) counted as absence from working?

The attendance rate is calculated based on how the employee would normally have worked during the month.

How does the financial support affect probationary employees?

The employer can also receive financial support for probationary employees, as long as the employer otherwise fulfils the requirements for receiving the support. One of the basic requirements is that employers must have made efforts to the extent possible to reduce their cost of labour.

Can employees who have changed their form of employment after the comparative month be encompassed within in the short-time work working?

A basic requirement to be able to apply for financial support for short-time working is that the employer has done what is reasonably feasible to reduce the cost of labour. If the employee with a new form of employment remains working for the company after these measures, with a lower or equal percentage of full-time employment compared to the comparison month, they can be encompassed within the programme providing financial support.

Practical questions

When can I apply for the financial support?

The first date the applications will be accepted is 7 April 2020. However, the financial support can begin from 16 March 2020.

Support may be granted for a maximum of six consecutive months, with the possibility of applying for three additional months (within a statutory time limit).

What do I do to apply?

The application period opens on 7 April, when procedures will be in place for companies to apply for the financial support. At that time, we will update the information on how the application procedures will proceed, and will update it as things change.

The applications can be submitted via tillvaxtverket.se. The process consists of several steps, such as submission, then approval, and then decision on preliminary financial support. The first month in the support period that the financial support is to be received must commence no later than 45 days after receiving the approval. Otherwise, the support will not be dispersed. We will return later with details concerning how you can submit your application.

Preliminary financial support can not be disbursed until Tillväxtverket, the Swedish Agency for Economic and Regional Growth has approved the application and granted the support. Applications will be processed promptly.

After preliminary financial support has been granted, the employer is obligated to make a reconciliation at regular intervals (in accordance with the provisions of the Act on Support Related to Short-Time Working) in order to establish the definitive amount of financial support.

How quickly will the request for financial support be able to be processed?

We will do our utmost to accomplish a speedy processing. However, presently we are unable to estimate how many applications will be received and hence the volume related to available resources. Therefore we cannot say right now what the exact time period for processing will be.

Is it possible to apply before April 7?

No, it is not possible to submit the application for the financial support prior to 7 April. All applications received prior to 7 April will be disregarded.

The application is to be made in accordance with the instructions that will be available prior to the opening of the application period.

Does Tillväxtverket, the Swedish Agency for Economic and Regional Growth, accept digitally signed agreements between employers and employees?

Yes. However the employer will need to be able to verify the digital signature (meaning the signature of the specified person who has signed the document), at the request of Tillväxtverket.

What are the steps required to complete the application process?

The application consists of a few simple steps. These are briefly described here:

Your Information:

You will need to fill in the details here for the company you are seeking financial support for. You will need to specify:

  • Company registration number (or Org. registration number), (can be typed in or searched for via a search tool in the application).
  • Industry code (SNI code, can be searched for via a search tool in the application).
  • Bank details for disbursement of the financial support if you are granted this support.
  • Contact information.
  • Amount in kronor, time period, and the number of employees you are applying for financial support for. There will be a calculation tool to assist you in calculating the correct amount.
  • If you have fewer than 50 employees, you will need to attach the calculation you obtained from the calculation tool. If you have more than 50 employees, you can attach your own calculation data and documents.

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’ response.

Review your application details

Now is the time to verify all of the information you entered before submitting your application. Keep in mind that it is very important that all information is correct. Take some time to verify all the information one more time; an incomplete application will result in a longer processing time.

Sign and submit

The application is signed with your bank ID. When you sign your application, you must also certify that you have the right to represent the applicant, that the information contained in the application is accurate and full and complete, that you are aware that false information will result in an obligation to repay the allowance plus a criminal offence punishable by law, and that you provide your consent that Tillväxtverket, the Swedish Agency for Economic and Regional Growth, verifies the information in the application against registries at Skatteverket (the Swedish Tax Agency), Bolagsverket (Swedish Companies Registration Office) and Kronofogdemyndigheten (Swedish Enforcement Authority).

We look forward to receiving your application.

Definitions

If a Group has several different subsidiary companies, will each unit/company be considered as separate?

Yes. In addition, it is also possible to regard the various operating units within a company as separate.

Is the short-term work allowance regarded as “state aid”?

No, it is not considered to be state aid due, to that the measure is not selective.

How do you define an “operating unit”?

An operating unit is a geographically defined or separated unit, not an organisational unit. For example, a retail shop, factory, fenced industrial area. An operating unit does not have to be an independent sustaining financial unit, but rather what is meant here is a fixed starting point for the work.

Collected information relevant to you as an owner or manager of a company

Many of Sweden’s business enterprises severely impacted by the COVID-19 pandemic. Verksamt.se has gathered together information that may be of value for you to know as an owner or manager of a company.

Collected information at verksamt.seexternal link, opens in new window