2024-03-07-KPMG_Global-Sweden_–_New_Proposals_Would_Limit_Hiring_of_Unskilled_Labour,_but_Attract_Those_with_Skills_4页_189kb

Summary of Sweden's New Labour Immigration Proposals

Core Content

Sweden's government has received a report titled "New Rules for Labour Immigration" on 15 February 2024, which outlines a series of new proposals aimed at reforming the country's immigration and work permit system. These changes are set to come into force from 1 June 2025 and are designed to limit the influx of low-skilled foreign workers while making Sweden more attractive to highly-skilled immigrants.

Main Proposals

1. Higher Minimum Salary for Work Permits

• The current minimum salary for work permits is 80% of the Swedish median wage (SEK 27,360).
• The proposed change would raise this to match the median wage (SEK 34,200), with annual adjustments based on Statistics Sweden (SCB) data.
• Certain groups may be exempt from this requirement:
  • Recent university graduates applying for work permits.
  • Individuals with residence permits for research.
  • Occupations where domestic labor is insufficient.
  • Specific areas in Sweden with labor shortages.
• Exempt individuals must still meet salary standards based on collective agreements or industry norms.

2. Exclusions from Work Permit Eligibility

• Certain low-skilled occupations will no longer be eligible for work permits, including:
  • Personal assistants.
  • Berry pickers.

3. Restrictions on Status Changes

• The possibility of changing status from asylum seeker to work permit holder will be abolished.

4. Increased Special Fee for Employers

• Employers hiring foreign nationals not permitted to reside or work in Sweden will face a higher special fee.

5. Health Insurance Requirement

• Foreign nationals granted work permits with a validity of less than one year will be required to have comprehensive health insurance.

6. Employer Reporting Obligations

• Employers must notify the Migration Agency if an employee with a work permit terminates their employment or if the employment does not commence.

7. Promoting Highly-Skilled Immigration

• The Blue Card permit will be extended from two to four years, making it more attractive for skilled workers.
• Recent graduates with residence permits will be able to apply for research residence permits from within Sweden, a change not previously available.

Key Information

• The proposals are part of a broader effort to adjust Sweden's labor immigration policy in line with economic and social needs.
• The government will determine exemptions based on data from the Migration Agency and the Public Employment Service.
• These changes are expected to impact industries reliant on low-skilled labor and increase costs for employers in such sectors.
• The new framework is anticipated to enhance Sweden's appeal to highly-skilled workers, potentially supporting economic growth and innovation.
• KPMG has noted that these proposals align with existing government intentions and may provide opportunities for businesses in specific regions and sectors.

Why This Matters

• Industries that rely on low-skilled labor may face challenges in hiring foreign workers, possibly leading to increased labor costs.
• The flexibility in Blue Card validity and research permits could encourage more skilled professionals to consider Sweden as a destination.
• The implementation of stricter rules and additional requirements is likely to affect both employers and employees, requiring adjustments in compliance and hiring practices.

KPMG Insights

• The new proposals are largely anticipated and reflect the government's long-term strategy to regulate labor immigration more effectively.
• The extended validity of the Blue Card is expected to increase its attractiveness.
• The criteria for salary exemptions remain to be defined in practice, which could influence the impact on businesses, particularly in northern Sweden.

Related Resources

• The report is available in Swedish: Nya regler för arbetskraftsinvandring SOU 2024:15.
• The article is excerpted from KPMG International's publication: Stricter Rules for Labour Immigration -- Sweden.

Contact Information

For further assistance, contact:

• Peter Lindström – Senior Manager
  Tel: +46 72 1458439
  Email: peter.a.lindstrom@kpmg.se
• Nina Dahlsten – Senior Manager
  Tel: +46 72 1869032
  Email: nina.dahlsten@kpmg.se

KPMG International member firms provide services in various jurisdictions, including the U.S. and Canada, but the U.S. firm does not offer immigration or labor law services. KPMG Law LLP in Canada can assist with U.S. immigration matters.