Unemployment insurance to cost less

The Swedish government has promised to cut the cost of subscribing to unemployment insurance funds (A-kassa). Those on parental leave, sick leave or currently unemployed will also be allowed to join.

The cut in subscription costs, to be announced in the autumn budget, are expected to come into force from July 1st 2009.

“It is important that people have an income-related unemployment insurance in the event of unemployment. Lower premiums for unemployment insurance, temporary changes to membership conditions and simplified rules are three measures recommended by the government to help new and returning members,” finance minister Anders Borg said in a press release on Sunday.

The government proposes that it should also be easier to join an unemployment insurance fund. Membership conditions based on time worked will be removed in the new proposal. This means that those on parental leave, sick leave or currently unemployed can become members of an A-kassa.

The government has also said that the introduction of a mandatory unemployment insurance will be reviewed again. The new review will consider measures already proposed in the initial review.

“The proposed solution would involve an excessively technically complicated system,” according to employment minister, Sven Otto Littorin.