SHARE
COPY LINK
For members

POLITICS

Plans for 35-hour workweek unveiled by Sweden’s Social Democrats

A 35-hour working week has been suggested by Sweden’s biggest opposition party, however the proposal has been criticised by other parties and the business world.

Annika Strandhäll
A working group appointed by the Social Democrats has proposed introducing a 35-hour workweek in Sweden. Pictured is Annika Strandhäll at a press conference in Stockholm in 2022. Photo by: Maja Suslin / TT

The 35-hour workweek suggestion comes from a working group appointed by the centre-left Social Democrats.

The group is one of several such bodies tasked with developing new policy proposals for the party ahead of the 2026 election.

READ ALSO: ‘Reassess your cultural background’: Key tips for foreign job hunters in Sweden

Annika Strandhäll, former climate minister and spokesperson for the proposal, emphasised the potential benefits at a press conference.

“We want to prove that a reduced full-time measure is both possible and positive for society,” Strandhäll said.

“We believe that by shortening working hours, more tasks will need to be shared among more people. With Sweden’s high unemployment rate, a large reserve of labour is available to fill those roles.”

She explained that the proposal is rooted in the belief that a shorter workweek could lead to a more sustainable working life and improved health for workers, among other things.

A pilot research project

The working group has laid out a plan to test this reform through a research project involving 5,000 workers, who would work 35 hours per week for a year.

This trial, targeting public sector workers employed in the welfare state, will aim to gather data on the impacts of shorter working hours.

Based on the findings, the group will look into ideas for gradually introducing a 35-hour workweek across all sectors by 2035.

“We believe it’s important to implement this gradually over a reasonable period. When you look at our entire reform package, it creates more opportunities for more people to enter the labour market,” Strandhäll told the Swedish news bureau TT.

She also highlighted that studies on similar reforms, such as those conducted in France, showed positive social effects.

“This is a natural step to take if you look at how to create a more sustainable working life. We believe that this is something that Swedish wage earners want,” she said, according to the national broadcaster SVT.

Criticism and concerns

However, the proposal has already sparked criticism, particularly from the Liberal Party and Swedish business leaders.

Johan Pehrson, the leader of the Liberal Party (Liberalerna), said that reduced working hours would inevitably lead to lower productivity.

“If you work less, you also get less done. There is no getting away from it,” Pehrson told SVT.

He warned that the proposal could result in a loss of 250 billion kronor in tax revenue, a sum exceeding the combined costs of Sweden’s judiciary and defence sectors.

Swedish businesses share Pehrson’s concerns.

In a report published earlier this summer, the Confederation of Swedish Enterprise (Svenskt Näringsliv) suggested that such a reduction in working hours could lead to an 8.1 percent decrease in GDP.

“Swedes already have some of the shortest annual working hours in the OECD, yet the debate over reducing work hours has resurfaced. According to the report, cutting the workweek from 40 to 35 hours could lead to a long-term reduction in GDP by 509 billion kronor per year -equivalent to 8.1 percent of GDP or 46,000 kronor per person annually,” the organisation pointed out on its website.

The current framework

Today, around 80 percent of white-collar and 74 percent of blue-collar workers in Sweden are employed in roles requiring 40 hours of work per week.

The regulation of working hours in the country is governed by the Working Hours Act (Arbetstidslagen), which outlines the maximum number of hours an employee can work each week.

Under the current legislation (i.e., the “regular working time and on-call time” provisions, Section 5 of the Working Hours Act), a standard full-time workweek is set at a maximum of 40 hours.

Other proposed changes to working life

Strandhäll’s working group, which has been active throughout the year, is one of eleven groups tasked with developing new policy proposals for the Social Democrats ahead of the next parliamentary election.

Another notable proposal from this group is the introduction of a “security pension,” which would allow workers to retire after 40 years of work regardless of their age.

The proposals presented on Friday are not the Social Democrats’ final policy but will serve as a foundation for discussion at next year’s party congress.

Member comments

  1. It seems like what the Social D’s are saying is that room would be made in the job market for more people to accomplish the same amount of work. This should lower the number of people on the dole & add tax payers.

    It seems like the detractors are seeing the loss of 12.5% productivity per working person and they’re not seeing those hours replaced by anyone. This, not surprisingly, leads to economic catastrophe, per their descriptions.

    Am I missing something (not rhetorical – I often do 😉 )?

  2. Sounds like typical Strandhäll populism, perhaps to woo Vänsterpartiet and appease the left of her own party. But Centerpartiet, whose support the social democrats have needed in the past, are dead against shortening working hours. The idea would also go against the ‘Swedish model’ where working hours and salaries are the realm of the unions directly with employer organisations. SKR (Swedish Municipalities & Regions) would also be against the move. So, good luck to Strandhäll, she’ll need it.

  3. Assuming that employers would have to hire staff to fill the 12.5% reduced working hours to maintain production levels, then their payroll costs would also increase by 12.5% for same said productivity. How will this be financed? Also, the theory of using unemployed workers to fill the created vacant jobs sounds fine, but in practice it’s difficult to replace qualified professionals with (at least in part) reluctant unemployables. Many sectors are already screaming for qualified staff.

Log in here to leave a comment.
Become a Member to leave a comment.
For members

MONEY

How will Sweden’s new budget affect foreign residents?

The Swedish government will present its autumn budget on September 19th, but how will the proposals we know about so far, like measures to attract foreign talent and money for Swedish classes, affect foreigners?

How will Sweden's new budget affect foreign residents?

Measures to attract foreign talent

The budget will include a range of reforms with the aim of improving the Swedish economy and Swedish competitiveness, with special emphasis on attracting talent and promoting investment in the country.

This, among other things, includes 5 million kronor to Visit Sweden in order to promote Swedish tourism, 8 million kronor on attracting foreign talent in 2025, and 16 million kronor to Business Sweden in order to identify and contribute to solving obstacles to investment for Swedish companies and foreign companies in Sweden, as well as attracting strategic investment.

The government will also set aside 10 million kronor in 2025 for an international investment conference, in order to position Sweden as an attractive destination for foreign investment.

Money towards integration and Swedish classes

The government also plans to spend 196 million kronor on increased integration efforts, including three-year intensive courses for children who do not speak any Swedish at home and extra money for after-school fritids clubs to provide Swedish classes for children with foreign backgrounds.

Around 31 million kronor would go towards assisting integration for foreigners who are stay-at-home parents, especially women, in order to assist them in finding work. This would include language lessons, as well as study and career advice for refugees in particular, as well as other women born abroad.

Another 4 million kronor of the 196 million kronor total would go towards mapping foreigners’ Swedish skills – reading, writing and listening – in order to understand which integration measures would be useful.

Finally, 40 million kronor would go towards language courses for certain key workers, like staff in elderly care homes and preschools, a policy which was originally introduced by the former government in 2021. This would last until 2026.

Tax-free investment savings accounts

ISKs (Investment Savings Accounts) were introduced in 2012 as a way for people in Sweden to easily invest in shares and funds. An estimated 3.5 million people in Sweden have an ISK, with 75 percent of these accounts having a balance of 300,000 kronor or less.

Currently, they’re not subject to capital gains tax, but they are instead taxed at a fixed rate – known as schablonsskatt – an annual rate paid on the entire value of the sum held.

Under the new proposal, tax on ISKs, as well as KFs, another type of investment savings account taxed in the same way, would be scrapped for any accounts with a balance of less than 150,000 kronor from next year, rising to 300,000 in 2026. 

For foreigners living and working in Sweden, this will make saving in equities, bonds, and funds while resident in Sweden significantly more attractive.

As the new Pan-European Personal Pension Product (PEPP) is also included, anyone living in Sweden can even keep their tax-free savings accounts when moving to another EU country – even if they’re not an EU citizen.

Tax cuts

Sweden’s government has announced plans to increase jobbskatteavdraget or employment tax credit, a rebate given to everyone who has a job.

If you have a job in Sweden and do not depend on benefits for your income, you qualify for the tax credit, which was brought in in 2007 to ensure that people would always be better off in work than on benefits.

As a percentage of income, those on the lowest salaries get the biggest tax reduction, with the maximum tax reduction next year set at 10,633 kronor. 

You can see a breakdown of how people in different income brackets will be affected by the increase in this article.

People on the median salary of 462,000 kronor per year (38,500 kronor a month) will see their tax bill shrink by 3,671 kronor.

The reduction will be applied automatically and is available to everyone who works and does not receive benefits, whether you’re a Swedish citizen or not.

Pensioners won’t be left out either – they’ll see tax cuts equivalent to the employment tax credit, to ensure they’re not worse off than people in work.

Plans to curb migration

The government has also announced plans to allocate over 4.4 billion kronor to restricting migration over the next three years: 513 million in 2025, rising to 2.5 billion in 2026 and 1.35 billion in 2027.

A large share of this – 1.4 billion in 2026 – will go towards encouraging migrants to return home voluntarily, a scheme which is only available to refugees, quota refugees, people in need of subsidiary protection on the grounds of exceptionally distressing circumstances, or family of these groups.

The rest of the funds will go towards reducing fraud and misuse of the system and an increase in checks on foreigners in the country, the government has said.

Funds to combat unemployment

Sweden’s unemployment rate is currently at its highest level in ten years, not counting the pandemic. The government is therefore planning a package of budget measures to try and combat this, including 900 million kronor to regional vocational training for adults – around 11,000 more study places. 

The measures also include raising the grant for supervisors offering apprenticeship training, as well as 79 million kronor for the Public Employment Agency to support people who have been out of work for a long time.

SHOW COMMENTS