The Waiting Period Deduction and Its Significance for Businesses and the Labor Market
The waiting period deduction is part of the Swedish health insurance system and means that the employee bears a portion of the cost of sick leave through a one-time deduction from sick pay on the first day of the sick leave period.
The reason the waiting period deduction was originally introduced is that employers took over the Swedish Social Insurance Agency’s responsibility for sick pay during the first 14 days of a sick leave period.
At the same time, experience from the period when Sweden did not have a similar deductible showed that this led to unusually high rates of sick leave and that health insurance costs rose sharply.
The waiting period deduction is therefore an important part of the health insurance system and contributes to a long-term sustainable system.
Recently, proposals have been put forward to eliminate the waiting-period deduction. The Confederation of Swedish Enterprise believes that eliminating the waiting-period deduction would lead to increased costs for employers, higher rates of sick leave, and reduced ability for companies to plan and staff their operations.
Estimates show that costs for Swedish employers could rise by between 21 and 42 billion kronor in 2026. In addition to direct sick pay costs, increased absenteeism could also lead to lost production and greater challenges for companies that are already struggling to find the right talent.
For tech companies, which operate in a globally competitive market and rely on high productivity and specialized expertise, rising costs and higher absenteeism risk affecting both their competitiveness and growth opportunities.
TechSverige shares the Confederation of Swedish Enterprise’s view that the waiting period deduction serves an important function as a deductible in health insurance and contributes to a long-term sustainable system.
Calculate the impact on your business
The Confederation of Swedish Enterprise has developed a calculator that allows you to estimate how the elimination of the waiting-period deduction would affect your company’s sick pay costs.