• Sweden edition
 
The comments below have not been moderated in advance and are not produced by The Local unless clearly stated.
Readers are responsible for the content of their own comments. Comments that breach our terms and conditions will be removed.
4 Pages V  < 1 2 3 4 >   Reply to this topic

Parental leave benefit, payment level CHANGED!

Your previous salary in the EU will be used

ahm
post 19.Nov.2012, 01:48 PM
Post #31
Joined: 3.Sep.2012

Puffin , yorkshimire , you both are very nice and you have excellent knowledege ,

Thanks
Go to the top of the page
+
ahm
post 19.Nov.2012, 02:14 PM
Post #32
Joined: 3.Sep.2012

It is not 80% of salary. It is 80% of your SGI (sjukgrundinkomst) which is 97% of your current annual salary. And depending upon how much you earn is capped at 10 x price base amount = 440.000:- /year, so do the math yourself 0.97 x Your-annual-salary x 80% = max. If your income is greater than 440.000 :- /year, everything over 440 is excluded from the calculation.
,,, The minimum is 8 months even if u worked for 8 months and above will be calculated using (sjuk grund inkomst=ill basic income) , if im right .,,

And what they will do for the number exceeding 440,000 kr ,might be another category !

All that benefits for parents for 480 days within 4 years of child age ,but not for benefits of job seekers of course ,or jobless people .
Go to the top of the page
+
Puffin
post 19.Nov.2012, 07:01 PM
Post #33
Location: Dalarna
Joined: 5.Apr.2006

QUOTE (ahm @ 19.Nov.2012, 02:14 PM) *
All that benefits for parents for 480 days within 4 years of child age ,but not for benefits of job seekers of course ,or jobless people .

It is currently available until the child is 8 - not 4 - although there is a proposal that in future you will only be able to carry forward 95 days to use after the age of 4

People who are jobless get parental leave according to their SGI if they have one or the guarantee level of 180kr per day if they do not
Go to the top of the page
+
Yorkshireman
post 20.Nov.2012, 12:35 PM
Post #34
Joined: 22.Nov.2011

QUOTE (ahm @ 19.Nov.2012, 02:14 PM) *
And what they will do for the number exceeding 440,000 kr ,might be another category !All that benefits for parents for 480 days within 4 years of child age ,but not for b ... (show full quote)

If you have an income of say 600.000:- per year (50.000 /m) and go for parent leave, Your parental leave monies are capped and based upon an amount as though your income was 440.000 /year.

If You are the member of a Union that has a collective agreement with the employer, and in that agreement it states that the employer will top up whatever you get from Försäkringskassan to actual 80% of real salary. This is more common in large companies, and also normally requires a reasonable number of years employment before being valid.

Despite what is the stereotyped picture of Sweden being a High-Benefit country ... it actually has some of the worst in Europe. What most people refer to as benefits, are classed a insurance, and these are mainly valid for those that are/just-have work(ed).

For Benefits, whilst many say how high Swedens child benefit is, 1050:- in Germany it is 184 Euro/m and can be entitled to it until the child is 25 if they are still in education!

Unemployment benefit in Sweden is again, insurance with strict conditions. The figures that always show Sweden high in the list with regards unemployment payments compared to other European countries is actually incorrect. Sweden has one of the worst in Europe compared to other countries. The Government provides data for the statistics that includes an assumption that everyone working has taken the option for the 80% of SGI (income related) amount ... when in fact, if you have been watching the news recently there are hundreds of thousands that are without insurance at-all!!! The Gov. provides a rosy picture, than it really is.
Go to the top of the page
+
Taxalien
post 20.Nov.2012, 09:37 PM
Post #35
Joined: 24.Dec.2009

I would have to disagree a bit about your description here.

Insurance works in such a way that you loose when you win and if you loose then you win something back.

In other words, you pay a little in insurance which you usually never get back unless something happens to you that makes you a claimant on the insurance policy. Most of us will hopefully never have to claim anything against an insurance policy because the mere fact we have to, means we have lost something.

Now, a lot of things by the Swedish state is called "insurance" but it isn't. It's the opposite of the insurance model. In most cases you pay a lot more than you ever expect to get back.

A typical example is parental leave benefit.The "insurance premium" is 2.2% on the whole income of employment over your entire lifespan. Even at very low interest rates, the accrued policy value is far beyond what any one individual will ever be able to claim back by procreation and catering for resultant offspring when off work.

I once calculated that it would take 7+ children to actually break even.

Consequently we cannot even call Sweden an insurance model. It is rather just a tax model in which "lavish benefits" are waved in front of the people, which are then later over charged for by the state.

The contrast is how it works elsewhere. In other countries families retain more of their income allowing them to plan and deal with parenthood in a way that they choose as they see fit.

In Sweden this choice is no longer available because families are forced to conform into the a system they cannot opt out of.

2.2% may not sound much. But depending upon what the interest rate would be on that money if it was invested elsewhere, it could amount to as much as all you need to be able to retire at 65 years of age.

Then, considering that 2.2% is just a small part of the whole 31.42% that is charged it should be obvious to everyone that every resident would be able to retire much earlier in life than 65 years of age and since we all know we can't then this difference between when we can and what we pay in, is in fact all the money that are wasted on all the nonsensical ideas and programmes that the political nobility are running with.
Go to the top of the page
+
redblue
post 21.Nov.2012, 03:57 AM
Post #36
Joined: 27.Jul.2007

As mentioned below, if you have 6 children you will get around 600 000 SEK in parental leave benefits. To make it simple, I assume the growth rate of income, and hence of parental benefits, equals the discount rate. Hence, the Net Present Value (NPV) of parental leave benefits = 600 000 SEK.

Assuming your income is 315 000 SEK per year, you will work for 40 years, and the growth rate of income equals the discount rate, the NPV of the "insurance premium" = 2.2% x 315 000 SEK x 40 years = 300 000 SEK.

Since 600 000 SEK >> 300 000 SEK, I believe your calculation "that it would take 7+ children to actually break even" is wrong.

So how much money does one six-child-parent get from the government (taxpayers)?

Parental leave benefits for six children is worth 19140 SEK/month x 6,5 months/parent x 6 children = 744 000 SEK before tax, if your income is 26100 SEK/month. Assuming you pay 25% tax on this amount, but also get pension contributions on it, your after tax benefits equals to 600 000 SEK.

On top of that you will get child allowance and large family supplement (barnbidrag and flerbarnstillägg) of about 50% (your share) x 1300 SEK/child x 6 children x 12 months x 18 years = 800 000 SEK.

You will also get temporary parental leave benefits (VAB ersättning) to take care of a sick children. Assuming you will stay at home 6 days per year, per child under its first 10 year, and not thereafter, you will get an additional 200 000 SEK after tax. If you are a single parent, you could get millions more on top of this (bostadsbidrag, underhållsbidrag etc). On top of this you get VERY subsidised childcare etc...

In short, as a parent in Sweden you will get plenty of money in subsidies.
Go to the top of the page
+
skogsbo
post 21.Nov.2012, 07:38 AM
Post #37
Joined: 20.Sep.2011

QUOTE (redblue @ 21.Nov.2012, 03:57 AM) *
As mentioned below, if you have 6 children ...In short, as a parent in Sweden you will get plenty of money in subsidies.

or if you have only 2 kids, but earn above the threshold, you will more than pay your way and the paternity / maternity leave helps subsidise things a little bit, while you care for your kids?

Plus, for those who are self employed it's more complex and if I took pappa leave, I would get the bare minimum as I have no Swedish tax record until after the end of this year. It's just not a logical option for me to not work and to claim it.

Plus, how many people who have paid into the system are likely to have 6 kids? I would imagine the number of people in this catergory is very very small. They would have to have been in Sweden a number of years and been fully employed during that time and the lassie would feel like she lived in a puppy farm, not a house!
Go to the top of the page
+
Yorkshireman
post 21.Nov.2012, 08:34 AM
Post #38
Joined: 22.Nov.2011

Tax system, benefits via social insurance is not designed, nor ever implied, to be break even for the individual.

The very fact that you cannot show what the tax monies you have paid individually have been used for invalidates the argument with regards not being able to opt out of parental leave monies and make your own arrangements for child care. You Can, since maybe 100% of your tax is always used to pay for, for example, road cleaning or the police etc...

There are 2 points that something like parental leave monies are designed for:

1. If you were to take time out to care for a child, if there was no financial support, given your own calculations, parent would have to save for a lifetime before being able to cover their lost income! Parental leave monies allows the comfort that the monies are available immediately.

2. The primary purpose is not about money directly, it is to remove the pressure of employers upon employees that wish to spend time caring for their children. This is done in 2 ways, by giving the right in law to take parental leave and protecting your position at work, and secondly, removing the possibility of the employer to pressure you to work as they are paying you ...by removing the employer-pay-employee connection for the duration of parental leave.
Go to the top of the page
+
redblue
post 21.Nov.2012, 11:46 AM
Post #39
Joined: 27.Jul.2007

QUOTE (skogsbo @ 21.Nov.2012, 08:38 AM) *
or if you have only 2 kids, but earn above the threshold, you will more than pay your way and the paternity / maternity leave helps subsidise things a little bit, while you care for your kids?

Even if you have an average income, say 25000 SEK/month, and have two children you will receive quite a lot. Get hundreds of thousands of kronor in benefits from the government (much much more if you are a single parent with a deadbeat ex), no need to pay +10000 SEK/month for kindergarten, free education, no need to save for college etc.

However other groups, such as childless people and those earning much above the threshold, obviously pay more than they get back with regards to governmental child support.
Go to the top of the page
+
Puffin
post 21.Nov.2012, 11:56 AM
Post #40
Location: Dalarna
Joined: 5.Apr.2006

QUOTE (redblue @ 21.Nov.2012, 11:46 AM) *
However other groups, such as childless people and those earning much above the threshold, obviously pay more than they get back with regards to governmental child support.

Obviously with regard to child support if you have no children you do not get anything - but this is a sort of obvious and "duh"!

But it doesn't necessarily mean that high income earners/childless are necessarily "losers" in the tax system - it is so individual
- high income earners have often had expensive university taxpayer-funded educations and not joined the workforce until 10 years after others who left school after high school
- who knows which medical problems people have had and what these cost?

taxes pay for a lot of things that you may never personally use - such as nuclear power accident simulations - but it would be a very narrow view to not have these just because you personally do not benefit
Go to the top of the page
+
skogsbo
post 21.Nov.2012, 01:15 PM
Post #41
Joined: 20.Sep.2011

QUOTE (redblue @ 21.Nov.2012, 11:46 AM) *
Even if you have an average income, say 25000 SEK/month, and have two children you will receive quite a lot. Get hundreds of thousands of kronor in benefits from the governmen ... (show full quote)

My point was that if you both earn above the threshold you are almost certainly still net contributors.

You think a good education should not be free? Only going to those who can afford it?

cheap Childcare, aren't those on low incomes allowed to work?

University, I presume nobody needs a higher education or only those with rich parents?

I think you might have moved to the wrong country to suit your ethos, try the UK home counties. wink.gif
Go to the top of the page
+
redblue
post 21.Nov.2012, 03:03 PM
Post #42
Joined: 27.Jul.2007

QUOTE (skogsbo @ 21.Nov.2012, 02:15 PM) *
You think a good education should not be free? Only going to those who can afford it?

There are some very wrong things with Sweden, but taxpayer-funded education is not one of them.
Go to the top of the page
+
jeff9556
post 21.Nov.2012, 10:21 PM
Post #43
Location: Skåne
Joined: 5.Oct.2012

redblue: your arguments are not making any sense, if you have kids here in Sweden you get a lot of benefits. So what, big deal, its good for parents and of course the children who get their mums and dads at home for an extended period. That is what we value and that is what we are prepared to pay for. You come across as someone not really down with Swedish values and culture.
Go to the top of the page
+
Taxalien
post 22.Nov.2012, 10:59 PM
Post #44
Joined: 24.Dec.2009

QUOTE (redblue @ 21.Nov.2012, 03:57 AM) *
As mentioned below, if you have 6 children you will get around 600 000 SEK in parental leave benefits. To make it simple, I assume the growth rate of income, and hence of pare ... (show full quote)

You are also assuming 0% interest on any money that could have been invested elsewhere.

You are assuming that both parents are working? 315 000 kr is very low for two incomes.
Go to the top of the page
+
Yorkshireman
post 23.Nov.2012, 08:30 AM
Post #45
Joined: 22.Nov.2011

QUOTE (Taxalien @ 20.Nov.2012, 09:37 PM) *
Then, considering that 2.2% is just a small part of the whole 31.42% that is charged it should be obvious to everyone that every resident ...would be able to retire much earli ... (show full quote)

And here is the flaw in your argument, the 31.42% is not the employee paying tax for föräldrapenning, it is the employer that is paying. There is no evidence, normally quite the contrary, that removing the 2.2% from the Employers Social Taxes would result in a 2.2% additional salary increase to the employee.

For the employee to be able to put aside this so-called 2.2% you claim, the employer would have to increase a salary by 3.14% (to take into account income tax on the employee, approximated at 30%). Which again is less likely to happen.
Go to the top of the page
+

4 Pages V  < 1 2 3 4 >
Reply to this topic
1 User(s) are reading this topic (1 Guests and 0 Anonymous Users)
0 Members:

 

Swedish Down Town
Consulting & Productions

We are an innovative business company which provides valuable assistance with the Swedish authorities, Swedish language practice, and general communications.
Call 0731 004 781 or visit:
swedishdowntown.com
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
psdmedia.se
If you want to drink, that’s your business. If you want to stop, we can help.
Learn more about English-language Alcoholics Anonymous in Sweden. No dues. No fees. Confidentiality assured.
aa-europe.org/sweden
The Local Spain is hiring!
The Local is seeking a new editor for our site in Spain to join our growing team of internationally-minded, driven, ambitious and clued-up journalists.
Details and how to apply