Sweden Introduces Income-Based Unemployment Insurance Rules Effective 1 October 2025

Starting on 1 October 2025, Sweden’s unemployment insurance system will transition to being income-based rather than time-based. This means the way benefits are calculated and eligibility determined will change significantly.

Key Changes for Companies and Individuals

Eligibility based on income: Instead of measuring how many hours or how long you have worked, eligibility now depends on your taxed income over a specified qualification period.

Membership length matters: Your length of membership in an unemployment insurance fund (a-kassa) will influence the benefit level you receive.

Qualification period and months with income: To qualify, you must meet new rules regarding your income in the 12 months preceding your unemployment claim, adjusted for certain life events such as illness or parental leave. For example, under the main rule, you must have earned at least SEK 120,000 in total, and at least SEK 11,000 in at least four months during that 12-month period.

Benefit duration based on income months: The number of months during which you had income above the qualifying threshold affects how many benefit days you are entitled to.

Transitional rules: If you have a benefit entitlement decision dated 30 September 2025 or earlier, the old rules will continue to apply. For new decisions made on or after 1 October 2025, the new income-based law applies — even if unemployment began before that date.

Administrative simplification for employers: Under the reform, some employer certificate requirements (e.g., reporting of hours worked) will be simplified. Data from the Swedish Tax Agency (Skatteverket) will increasingly be used instead of separate declarations.

Why This Matters for Employers and Workers

For employers: This reform means you need to be aware of the new income-based criteria when assisting former employees with unemployment fund matters. The simplification of employer certificates may reduce administrative work, but payroll and HR systems may need adjustments to ensure compliance.

For employees: It’s more important than ever to ensure your income is accurately reported and taxed, and that you are a member of an unemployment insurance fund if you want to receive the best benefit level. Joining early and maintaining membership could make a significant difference to your financial protection.

Looking Ahead

As Sweden moves toward an income-based unemployment system, both employers and employees are encouraged to stay informed and prepared. Understanding how the new rules affect benefit eligibility and reporting requirements will help ensure a smooth transition when the reform takes effect on 1 October 2025.

Let’s simplify your HR compliance, no matter where your business operates.

Connect with us today to learn how we can help. Email: info@linkcompliance.com.

—

Sources:

• The Unemployment Insurance Act (2024:506) — Official English translation published by the Swedish Unemployment Insurance Inspectorate (IAF). View document
• Akademikernas a-kassa — an officially recognised Swedish unemployment insurance fund, regulated by and operating under the supervision of the Swedish Unemployment Insurance Inspectorate (IAF). akademikernasakassa.se
• Alfa-kassan — one of Sweden’s approved national unemployment insurance funds. alfakassan.se

––-