Sickness Benefit Waiting Period Abolition Could Cost Swedish Cities Millions

Abolishing the sickness benefit waiting period, a promise by the Social Democrats, could lead to significant cost increases for Sweden's major cities. Stockholm faces an estimated 205 million SEK, Gothenburg 164 million SEK, and Malmö 107 million SEK in higher wage costs if the change is implemented. Despite a collective surplus of 32 billion SEK last year, these municipalities are experiencing economic pressure, with Stockholm raising taxes and Gothenburg considering further increases without state aid.

Politicians in Stockholm, Gothenburg, and Malmö, all led by the Social Democrats this term, are now preparing for the potential impact of the party's election pledge to eliminate the sickness benefit waiting period. The Social Democrats argue that the current system unfairly penalizes hard-working individuals who cannot work from home, negatively affecting their wages and pensions. They aim to remove this perceived injustice.

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The waiting period punishes you if you work hard but cannot work from home. Both your salary and pension are negatively affected. It amounts to several thousand kronor every year for a police officer, assistant nurse, or teacher. We want to remove that injustice.

While criticism of the proposal has largely focused on its potential impact on businesses, with Svenskt Näringsliv estimating increased employer costs between 21 and 42 billion SEK, a substantial portion of the cost would fall on the state, municipalities, and regions. Center Party leader Elisabeth Thand Ringqvist highlighted that many of the affected professions are in the public sector, meaning the financial burden would be borne by public authorities. The government's own Chancellery estimated in 2023 that behavioral effects, such as increased sick leave, could raise costs by 11 to 25 percent, though the Social Democrats cite a lower figure of five to six billion SEK based on parliamentary research.

Recent calculations from the National Government Employee Relations Board suggest the cost to the state could rise to approximately 600 million SEK, equivalent to 338,700 waiting days. Municipal administrative departments have provided figures for the sickness benefit waiting periods incurred last year, including the general personnel cost supplement. These figures confirm the substantial financial implications for the country's largest cities should the waiting period be abolished.

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If I listened correctly, an absolute majority of those jobs are in the public sector. Then the bill should fall on municipalities, regions, and the state.