Many of the industries where young people work have been severely affected during the pandemic, which has reduced employment opportunities and part-time work for young people. The proposal is expected to make it easier for young people to retain their jobs or find new employment.

The accelerated initiative means that additional costs can be lifted from companies negatively affected by new restrictions introduced due to the pandemic.

The employer contributions will be reduced to a level of 19.73% between January 2021 and March 2023. The proposal covers individuals who have turned 18 but not 23 years of age at the beginning of the year. The reduction will apply to compensation up to 25,000 SEK per month.

The proposal has a public financial impact of -9 billion SEK in 2021 and 2022, and -1.4 billion SEK in 2023, and will be included in a supplementary amendment budget. Compared to the announced proposal in the 2021 budget bill, the acceleration means an additional cost of 1.4 billion SEK.

The rules are proposed to take effect in February 2021 and will be applied retroactively to compensation paid after December 31, 2020. The rules will cease to apply at the end of March 2023.