Direct Request (CEACR) - adopted 2023, published 112nd ILC session (2024)

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In order to provide a comprehensive view of the issues relating to the application of the ratified Conventions on social security, the Committee considers it appropriate to examine Conventions Nos 102 (social security, minimum standards), 121 (employment injury benefits), 128 (invalidity, old-age and survivors’ benefits), 130 (medical care and sickness benefits) and 168 (employment promotion and protection against unemployment) together.

The Committee notes the observations of the Swedish Confederation for Professional Employees (TCO) communicated with the Government’s report on Convention No. 130.

The Committee takes note of the information provided by the Government regarding the application of Articles 8, 10(1)(3), 14, 15, 24(4), 43, 69 and 71(3) of Convention No. 102; Articles 6, 9(1)(2), 10, 11, 16 and 22 of Convention No. 121; Articles 18, 23, 29 and 32 of Convention No. 128; Articles 7, 9, 13, 19, 28 and 30 of Convention No. 130; and Articles 18 and 26 of Convention No. 168.

Article 9(3), in conjunction with Articles 14(2) and 22 of Convention No. 121. Duration of employment injury benefits. The Committee takes note of the Government’s indication in its report that the work injury annuity is provided up to the age of 65 at the latest, or one month before reaching the age of 68 if a person continues to work. The Committee recalls that Article 9(3) of the Convention requires the benefits to be granted throughout the contingency. The Committee further recalls that Article 22 of the Convention does not provide for the possibility to suspend the benefits upon reaching a certain age. The Committee requests the Government to provide information on: (i) the benefits provided to injured persons after they have reached the age of 65 and stopped working; (ii) whether these benefits are paid at the level required by Article 14(2) of the Convention; and (iii) whether there are any qualifying conditions for the entitlement to such benefits.

Article 19(2) of Convention No. 121. Calculation of employment injury benefits. The Committee takes note that the amount of the work injury annuity is determined based on the sickness benefit qualifying income (SGI). The Committee further notes that the SGI is considered as an income from employment which is expected to last for at least six consecutive months, according to section 3(2) of Chapter 25 of the Social Security Code of 2010. The Committee requests the Government to provide information on how the SGI is determined for persons with employment shorter than six months in case of permanent loss of earning capacity or corresponding loss of faculty due to employment injury.

Article 15(3), in conjunction withArticles 17(a), 18(1)(a) and 26 of Convention No. 128. Reduction of pensionable age. The Committee notes the Government’s indication that there are no specific provisions concerning the retirement age of persons who have been engaged in arduous and hazardous occupations under the public pension system. The Committee further notes that the retirement age for the old-age income pension is flexible and starts at the age of 63 in 2023 (section 3 of Chapter 56 of the Social Insurance Code of 2010). The Government also indicates that from 2026, the retirement age will be linked to the increase in life expectancy. The Committee requests the Government to indicate the replacement rate of the old-age income pension drawn at the earliest retirement age, by a skilled manual male employee who has completed 30 years of contribution or employment, in accordance with Titles I and III of the report form for Article 26 of the Convention.

Article 23(a), in conjunction with Articles 24(1)(a) and 26 of Convention No. 128. Replacement rate of survivors’ benefits. The Committee notes the Government’s indication that the adjustment pension provided to a surviving spouse is 55 per cent of the deceased’s pension base. In addition, the reduced guarantee pension is provided to persons who have resided in Sweden for at least three years. The Government further indicates that the child pension is equal to 35 per cent of the deceased’s pension base for one child and increases by 25 per cent for each additional child. The child pension may be supplemented by the surviving children’s allowance of 40 per cent of the price base amount in case the child pension is low. The Committee requests the Government to calculate the replacement rate of survivors’ benefits provided to a standard beneficiary (a surviving spouse with two children) in case the deceased spouse completed 15 years of contribution or employment, in accordance with Titles I and IV of the report form for Article 26 of the Convention.

Article 25, in conjunction with Articles 1(h) and 21 of Convention No. 128. Duration of survivors’ benefits. The Committee notes the Government’s indication that the adjustment pension is provided to a surviving spouse aged under 65 for a period of 12 months, or as long as the surviving spouse lives with a dependent child aged under 12. The Committee recalls that the right to a survivors’ benefit is provided to surviving spouses who are caring for a dependent child of the deceased (Article 21(2)(3)(b) of the Convention). According to Article 1(h) of the Convention, the term “child” covers a child under school-leaving age or under 15 years of age, whichever is higher or a child who is an apprentice or student or has a chronic illness or infirmity disabling him/her for any gainful activity, under prescribed conditions. The Committee requests the Government to provide information on the measures taken to extend the duration of the adjustment pension provided to a surviving spouse who is caring for a dependent child older than 12 years of age.

Article 15 of Convention No. 102 and Article 19 of Convention No. 130. Coverage of the self-employed. The Committee notes the Government’s indication that the conditions for entitlement to sickness benefits are the same for self-employed persons and employees. The Committee further notes the TCO’s observations indicating that the entitlement to sickness benefits and their amount depend on the verification of the SGI by the National insurance board. In this respect, the TCO points out that such verification is particularly problematic for self-employed persons, whose SGI is often much lower than their actual income. The Committee requests the Government to provide information on the measures taken or envisaged to ensure that self-employed persons are entitled to benefits based on the SGI determined from their actual income.

Article 11(1) of Convention No. 168. Persons protected by unemployment benefits. The Committee notes that in its 2022 conclusions on the application of the European Code of Social Security by Sweden, it noted as regards the income-loss insurance coverage that 78 per cent of the work force held membership in the unemployment insurance funds. The Committee requests the Government to provide information on the measures taken or envisaged with a view to increasing the income-loss insurance coverage up to at least 85 per cent of all employees. It further requests the Government to provide statistical data on the number of persons covered by the income-loss insurance.

Article 15 (1)(b) of Convention No. 168.Replacement rate of unemployment benefits. The Government indicates that a daily basic amount of unemployment benefit is SEK510 (approximately €43) in 2023. The Committee requests the Government to indicate whether the basic amount of the unemployment benefit is fixed at not less than 50 per cent of the statutory minimum wage, if it exists, or of the wage of an ordinary labourer, or at a level which provides the minimum essential for basic living expenses, whichever is the highest.

Direct Request (CEACR) - adopted 2017, published 107th ILC session (2018)

The Committee has examined the reports on the abovementioned Conventions received in 2016, as well as the 50th annual report on the application of the European Code of Social Security received in 2017 and the Consolidated report (CR) on the application of the Code and certain ILO social security Conventions ratified by Sweden (Conventions Nos 12, 102, 121, 128, 130, 168) for the period 2006–16. The Committee has also taken note of the observations submitted in August 2016 by the Swedish Trade Union Confederation (LO), the Swedish Confederation for Professional Employees (TCO), and the Swedish Confederation of Professional Associations (SACO) concerning the application of Conventions Nos 102 and 130.

Part II of the CR (Medical care). Articles 8 and 69 of Convention No. 102 and Article 7(a) of Convention No. 130. Contingencies covered. The Committee requests the Government to confirm that medical care includes preventive care, is provided for “any morbid condition, whatever its cause”, and is not limited to emergency care only in certain cases such as, for example, in cases of attempted suicide, intoxication by alcohol or drugs, participation in a fight, etc.

Article 10(1) of Convention No. 102 and Article 13 of Convention No. 130. Types of medical care. The Committee requests the Government to indicate what types of medical care are covered by the public health insurance, in particular with respect to domiciliary visiting, dental care, medical rehabilitation, supply, maintenance and renewal of prosthetic and orthopaedic appliances, and specify how the list of “the essential pharmaceutical supplies” is established in Sweden.

Article 10(3) of Convention No. 102; Article 9 of Convention No. 130. Objectives of medical care. The Committee requests the Government to state how the objectives of medical care are defined.

Part III of the CR (Sickness benefit). Article 14 of Convention No. 102; Article 7(b) of Convention No. 130. Contingency covered. The Committee requests the Government to indicate the definition of “sickness” and “capacity to work” established in the national legislation.

Article 15 of Convention No. 102; Article 19 of Convention No. 130. Coverage of the self-employed. The Committee notes that persons protected under Convention No. 102 are defined by reference to its Article 15(b), which covers classes of the economically active population, including self-employed. The Committee requests the Government to provide information on the conditions of entitlement and level of benefit of self-employed persons under the national legislation.

Article 71(3) of Convention No. 102; Article 30 of Convention No. 130. Due provision of benefits. The CR states that for the first 14 days of illness the responsibility to pay sick pay is on the employer, from the 15th day of the sickness cash benefit is paid by the Swedish Social Insurance Agency. The Committee requests the Government to indicate how the payment of sickness benefit to the beneficiary is ensured in case of the employer’s failure to pay.

Part IV of the CR (Unemployment benefit). Article 24(4) of Convention No. 102; Article 18 of Convention No. 168. Waiting period. The Committee requests the Government to indicate the measures taken or envisaged to reduce the waiting period for unemployment benefit to the first six calendar days.

Article 26 of Convention No. 168. Special provisions for new applicants for employment. The Committee requests the Government to specify what categories of new applicants for employment among those listed in Article 26(1) of Convention No. 168 are protected by the national legislation. The Committee requests the Government to indicate the nature and conditions of social benefits provided to these categories.

Part V of the CR (Old-age pension). Article 15(3) of Convention No. 128. Reduction of pensionable age. The Committee requests the Government to indicate the pensionable age established for the persons engaged in occupations deemed to be arduous or unhealthy.

Article 18 of Convention No. 128. Minimum qualifying period. The Committee requests the Government to indicate the length of the qualifying period required for obtaining the full and the reduced old-age pension benefits and confirm that, in calculating the replacement rate of the old-age benefit for the standard beneficiary (man with wife of pensionable age), the income related pension of the husband is calculated on the basis of 30 years of insurance and the guaranteed pension for the wife – on the basis of 20 years of residence.

Part VI of the CR (Employment injury benefits). Insufficient information. In its direct request of 2011 on Convention No. 121, the Committee requested the Government to include in its next report due in 2016 detailed information requested in the report form on the status of application in law and practice of the provisions of the following Articles of the Convention: 8 (list of occupational diseases); 9 (conditions of entitlement to benefits); 11 (offsetting of the cost of medical care); 14 (prescribed degrees of incapacity); 15 (lump sum compensation); 16 (helper’s allowance), 17 (review of incapacity); 22 (grounds for the suspension of benefits); and 26 (prevention, rehabilitation and placement services). The Committee observes that the report of 2016 provided clear answers on the status of application of Articles 8, 14, 15 and 16, stating that there is no list of occupational diseases, no degrees of incapacity in work injury insurance, no lump sum compensation, and no helper’s allowance in the insurance scheme. The Committee points out that such answers suggest that these Articles might not be applied in the national law and practice. The Committee also observes from the CR that the information supplied by Sweden since 2006 with respect to employment injury benefits is insufficient to conclude on the application of a number of other provisions of the Convention mentioned below. This concerns in particular medical care and sickness benefit, which are provided in case of employment injury not by the work injury insurance but by other insurance schemes having different conditions of entitlement, on which the required information is also lacking in the reports on Convention No. 130. The Committee notes in this respect that the LO, the TCO and the SACO point out in their observations concerning Convention No. 118 that an EU citizen who plans to work in Sweden for less than one year has difficulty gaining access to health care in Sweden, and that a governmental investigation is currently analysing the Swedish legislation’s coherence with international standards. In view of the insufficient information available, the Committee requests the Government to indicate in detail the manner in which effect is given to all Articles of Convention No. 121.

Reform of the work injury insurance. The TCO points out in its observation that work injury insurance has become increasingly under debate and the inquiry has been launched for a more equal and legally secure occupational injury insurance (dir. 2016: 9), but the Government’s report does not contain any account of the application of the existing legislation in practice. In this respect, the SACO and the TCO highlight a dramatic decrease in the number of approved life annuities by the Swedish Social Insurance Authority from 7,375 in 2008 to 2,009 cases in 2015, which cannot be explained by a better working environment and a healthier population. The TCO also points out that the requirement to prove that the reduction in the working capacity is expected to last at least one year for being entitled to insurance compensation, effectively means that many victims of employment injuries stand without compensation. In this respect the Government’s report of 2016 states that annuity can be granted if the incapacity for work is deemed to be lasting a year or more and is reduced by one fifteenth. The Committee requests the Government to reply in detail to the observations made by the trade unions. The Committee requests the Government to describe the objectives and the findings of the abovementioned inquiry for a more equal and legally secure occupational injury insurance and add a general appreciation of the manner in which Convention No. 121 is applied in Sweden, including for instance extracts from official reports as well as information concerning the practical difficulties encountered in the application of the Convention, in accordance with Part V of the report form.

Article 6 of Convention No. 121. Contingency covered. The Committee requests the Government to explain how the work injury insurance compensates the loss of income in cases where the working capacity is reduced by less than one quarter.

Article 9(1)(2) of Convention No. 121. Qualifying period. The Committee requests the Government to confirm that there is no qualifying period for entitlement to each benefit provided in case of employment injury. In this connection, the Committee notes from the observations made by the TCO that according to existing legislation only incomes that are predicted to last at least six months may be included in the calculation of sickness benefits. According to the TCO, this effectively means that employees with employment shorter than six months are not eligible for sickness benefits. The Committee asks the Government to explain how employees with employment shorter than six months are protected against incapacity for work resulting from employment injury.

Article 9(3) of Convention No. 121. Duration of benefit. The Committee requests the Government to confirm that employment injury benefit is paid throughout the contingency and to indicate whether there is a waiting period in respect of incapacity for work.

Article 10 of Convention No. 121. Medical care and allied benefits. The Committee requests the Government to confirm that medical care includes in particular types of care specified in points (c)(e)(f)(g) of Article 10.

Articles 11 and 16 of Convention No. 121. Cost-sharing and avoidance of hardship. According to the CR, the same rules of cost-sharing are applied regardless if there has been a work injury or not. The Committee requests the Government to demonstrate that the rules of cost sharing applied under the general health insurance scheme would not cause hardship for the standard beneficiary (a family of four persons) in case of a long term hospitalization and medical rehabilitation after a severe employment injury requiring the constant help of another person over the period of one year.

Part VII of the CR (Family benefit). Article 43 of Convention No. 102. Length of the qualifying period. According to the CR, all children residing in Sweden are covered by the child allowance. The Committee requests the Government to confirm that a child ordinarily residing in Sweden for six months will be automatically entitled to the child allowance.

Part IX of the CR (Invalidity benefits). In its reports, the Government refers to two benefits paid in the event of incapacity for work: the activity compensation paid for a maximum of three years during the period of incapacity from 19 to 29 years of age, and the income-related sickness compensation paid until the achievement of pension age during the period of incapacity from 30 to 64 years. The Committee requests the Government to confirm that Part IX is applied to these two benefits, which together constitute Invalidity benefit in terms of Part IX, and demonstrate how they complement each other to ensure protection throughout the contingency in case full invalidity has been acquired at the age of 25 years.

Part X of the CR (Survivors’ benefit) Article 23 of Convention No. 128. Calculation of benefit. The Committee notes that the calculation of the survivors’ benefit is done on the basis of the adjustment pension and the child pension. The Committee requests the Government to explain the rules of calculation of these two benefits and provide calculations in case the breadwinner had completed only 15 years of insurance.

Part XI of the CR (Standards to be complied with by periodical payments). Article 29 of Convention No. 128. Adjustment of the old-age, invalidity and survivors’ benefits to the cost of living. The Committee requests the Government to provide statistics requested in the report form under this Article for the period 2011–17 and explain the Government’s policy in this regard.

Part XIII of the CR (Common provisions). Article 69 of Convention No. 102; Article 22 of Convention No. 121; Article 32 of Convention No. 128; Article 28 of Convention No. 130. Suspension of benefit. The Committee requests the Government to indicate how these provisions are applied in national law and practice with regard to medical care, sickness benefit, old-age benefit, employment injury benefit, family benefit, maternity benefit, invalidity benefit, and survivors’ benefit. Recalling that sickness, invalidity and unemployment benefit schemes are subjected to the common labour market activation rules with a view to increasing the employment rate, the Committee requests the Government to explain the regime of sanctions applied in cases of refusal to participate in prescribed activation measures.

Observation (CEACR) - adopted 2017, published 107th ILC session (2018)

Article 10(3) of the Convention. Part-time work. In its previous comments, the Committee referred to observations received from the Swedish Confederation for Professional Employees (TCO) and the Swedish Confederation of Professional Associations (SACO) criticizing the reform of 2008, which reduced the entitlement to unemployment benefits for unemployed persons who agreed to work part time, to 75 days, while continuing to grant fully unemployed persons 300 days of benefits. The Committee asked the Government to reconsider the reform in the light of the social rationale of the Convention and its objective to promote employment, including part-time, by means of social security benefits. The Committee notes that the Government indicates that it is aware of the importance of providing support for part-time workers who seek full-time employment in this respect. The Committee notes with satisfaction, from the 50th annual report on the application by Sweden of the European Code of Social Security, that, from 15 May 2017, the provisions about part-time work have been changed: a person who performs or declares part-time work will, from this date on, be paid unemployment benefit for a total maximum of 60 weeks in a benefit period.

The Committee is raising other matters in a request addressed directly to the Government.

Direct Request (CEACR) - adopted 2011, published 101st ILC session (2012)

Part VII. Article 44 of the Convention (Family benefit). The Committee notes from the 44th annual report on the application of the European Code of Social Security that the child allowance (allmänt barnbidrag) is a tax-financed universal scheme covering all children resident in Sweden providing a flat-rate benefit and a supplement for large families. The benefit consists of periodical payments until the child is 16 years old. A similar allowance is given for children in upper secondary schools. The child allowance is 12,600 Swedish krona (SEK) per child and year (SEK1,050 per month). In case of two or more children, an additional benefit is paid amounting to SEK1,800 per year (SEK150 per month) for the second child. The total amount of child allowance paid in 2009 by the Social Insurance Agency was SEK23,400,000. The Committee would like the Government to show in its next report that this amount attains the level required by Article 44 of the Convention. The Committee also wishes to point out that benefits provided by the parental insurance in Sweden do not fall under the definition of the family benefit given in Article 40 of the Convention.

Part VIII (Maternity benefit). The Committee notes from the 44th annual report on the application of the European Code of Social Security that female employees and self-employed are covered by the pregnancy benefit scheme and can be entitled to pregnancy benefit (graviditetspenning). A woman is entitled to pregnancy benefit if she has a physically strenuous job and her work capacity has been reduced by at least a quarter due to pregnancy. She is also entitled to pregnancy benefit if she has a work which she may not perform due to risks in the working environment, but she can only receive pregnancy benefit if her employer cannot transfer her to lighter or less risky work. A woman receiving pregnancy benefit due to physically strenuous work can receive the benefit for at most 50 days, at the earliest from the 60th day before the expected delivery date. In case she has been prohibited from continuing her work due to risks in her working environment, she receives pregnancy benefit for every day the prohibition applies. However, pregnancy benefit is paid at the longest until and including the 11th day before the expected delivery date. The amount of pregnancy benefit the woman can benefit from per day depends on how much her work capacity has been reduced. The benefit is paid in four different levels; a quarter, a half, three-quarters, or a full benefit, which ensures the same replacement level as the sickness benefit (73 per cent in 2010 according to the calculations given in the report).

The Committee further notes, from the fact sheet on Swedish family policy appended to the report on Convention No. 102, that female employees are entitled to a parental benefit, which is payable to the child’s mother or father for a total of 480 days and may be granted to the mother at the earliest 60 days before the expected date of confinement, the rest being taken by either of the parents until the child is 8 years old. Parents sharing custody of the child are entitled to half of the total number of benefit days each. This right can be transferred to the other parent with the exception of 60 benefit days that are reserved exclusively for each of the parents; 390 days of the parental benefit, including 60 reserved days, are paid at the level of the sickness benefit; the remaining 90 days are paid at the minimum rate of SEK180 per day.

The Committee understands that Part VIII of the Convention is applied in Sweden by the complex mix of the pregnancy benefit and the parental benefit. It would therefore like the Government to show in its next report, on the basis of practical examples, that the maternity cash benefit at the level specified in Article 50 of the Convention will be in fact granted to all women protected throughout the whole period of abstention from work due to pregnancy and confinement and their consequences authorised by national laws or regulations.

Direct Request (CEACR) - adopted 2011, published 101st ILC session (2012)

The Committee notes that the Government’s detailed report contains statistical data and calculations required under Articles 4, 13, 18, 21 and 26 of the Convention. The Committee invites the Government to include in its next report detailed information requested in the report form on the status of application in law and practice of the provisions of the following Articles of the Convention: 8 (list of occupational diseases); 9 (conditions of entitlement to benefits); 11 (offsetting of the cost of medical care); 14 (prescribed degrees of incapacity); 15 (lump sum compensation); 16 (helper’s allowance), 17 (review of incapacity); 22 (grounds for the suspension of benefits); and 26 (prevention, rehabilitation and placement services).

Direct Request (CEACR) - adopted 2011, published 101st ILC session (2012)

Article 3 of the Convention. Consultations and cooperation with organizations of employers and workers. The Committee notes that a number of measures have been taken during the reporting period such as, for example, legislation to promote employment for refugees and new provisions on unemployment benefits for part-time workers (1 January 2009 and 5 July 2010) and self-employed persons (5 July 2010). In this connection, the Committee would like the Government to describe the manner in which the consultation and cooperation with the employers’ and workers’ organizations called for in Article 3 are ensured when implementing the provisions of the Convention in Sweden.

Article 8(1). Employment promotion. The Committee notes that, since 1 December 2010, legislation has been adopted to promote the employment of refugees, and other persons in need of protection who hold a residence permit, and their family members who have applied for a residence permit within two years. The Committee would like the Government to specify whether special programmes exist for other identified categories of disadvantaged persons, such as those listed in Article 8(1) of the Convention, having or liable to have difficulties in finding lasting employment and, if this is the case, it invites the Government to describe these special programmes.

Article 10(3). Part-time work. In a message received on 26 September 2008, the Swedish Confederation of Professional Employees (TCO) and the Swedish Confederation of Professional Associations (SACO) state that the description given by the Government on the restriction on the number of days that unemployment benefits can be paid in the event of partial unemployment as a means to prevent people from being trapped in part-time employment, does not give the right picture. This reform puts all the responsibility and all the costs of part-time unemployment on the individual worker, while it should be the employers’ responsibility to offer full-time work to those who wish to work full time. The Committee understands that unemployment benefits for persons who previously worked full time and who are looking for a full-time job but who were only able to find part-time work, have been reduced from 300 to 75 days on 7 April 2008, while in case the person remains fully unemployed, the period during which unemployment benefits are paid remain unchanged (maximum 300 days or 450 days for beneficiaries with a child under the age of 18). The person working part time may, after the expiry of these 75 days, either choose to continue working part time without receiving unemployment benefits or may resign from the part-time work and, if certain conditions are met, obtain unemployment benefits based on the income received from the part-time work for the remaining 225 days. The resignation from a part-time job after 75 days shall not be considered a reason to suspend unemployment benefits as it is the case for persons that left their full-time job without valid cause. According to the Government, its decision to reduce unemployment benefits from 300 to 75 days was aimed to encourage part-time workers to get full-time work. The Committee considers however that this decision may seriously undermine the incentives for the fully unemployed persons to take up part-time employment instead of remaining on full unemployment benefit. “Rewarding” unemployed persons for taking up part-time work by depriving them of the right to the full amount and duration of unemployment benefit which they have acquired in their previous employment would go against the logic of the Convention, which aims at offering additional protection against unemployment for part-time workers without reducing the level of protection guaranteed to full-time workers. The Committee wishes to refer in this regard to Paragraph 15 of Recommendation No. 176 which clearly states that, if an unemployed person has agreed to accept part-time work in the circumstances covered in Article 10(3) of the Convention, the level and duration of the unemployment benefit paid at the end of such employment should not be adversely affected by the earnings of the unemployed person from that employment. The Committee would like the Government to reconsider the situation in the light of the above social rational of the Convention and its objective to promote employment, including part-time, by means of social security benefits, detaching itself from the purely financial objective of seeking immediate cuts in the overall cost of unemployment protection.

Article 11. Persons protected. The Government states that it is difficult to estimate how many persons are actually covered by the income-related unemployment insurance since there is a lack of statistics on the membership of the unemployment insurance funds and estimates that about 3.4 million persons are members, assuming they are all entitled to benefits in the event of unemployment; and that there are about 1.3 million persons in the basic unemployment insurance, which covers persons that are not members of an unemployment insurance fund. In a letter dated 28 September 2011, the Ministry of Employment transmits a comment on these figures from the Swedish Confederation of Professional Associations (SACO) stating that the number of 4.7 million persons covered by unemployment insurance compared to the 4.9 million persons of the Swedish workforce, is exaggerated since not all members of the unemployment insurance qualify for benefits. SACO observes that there is a problem in Sweden since the proportion of the unemployed that are entitled to benefits is falling and refers to a 2009 Report of the Swedish Unemployment Board (IAF) “Job seekers with and without unemployment benefits”, according to which in 2008, the proportion was 55 per cent, and this downward trend has continued according to the Swedish Fiscal Policy Council Report of 2010 (p. 275). According to SACO, this reduction is due to the fact that students are not anymore eligible for benefits and benefits for part-time unemployed persons have been limited and benefits for full-time unemployed persons have been limited to maximum 300 days. In its 43rd report on the European Code of Social Security in 2010, the Government reported the substantial drop in the number of members of the unemployment insurance funds and the extensive efforts it was taking to help stimulate the number of new applications for admission to the funds not only from previous members who have resigned from membership, but also from individuals who have never applied for membership. In particular, throughout 2009, conditions for membership in unemployment insurance funds have been eased and each month of membership was counted double. The Committee invites the Government to reply to the comments of the SACO and to assess the effectiveness of the measures taken to increase membership of unemployment insurance funds.

Article 18. Waiting period. The Committee notes that since 7 July 2008, the waiting period to receive unemployment benefits has been increased from five to seven days. The Committee notes that seven days correspond to seven working days which means that the waiting period would correspond to nine calendar days (sections 20 and 21 of the Unemployment Insurance Act). The Committee would like the Government to indicate the measures it intends to take to bring national legislation into conformity with the Convention which limits the waiting period to a maximum of seven calendar days.

Article 21. Suitable employment. Since 2 July 2007 the possibility for jobseekers, during the first 100 days of benefit, to limit the search for work within their profession and vicinity was abolished and jobseekers must be prepared to accept any suitable work. According to the information provided by the Government in its report of 2008, the kind of work a jobseeker must seek and accept, and the limitations applicable thereto are specified in the regulations on suitable work (IAFFS 2004:3) issued by the Swedish Unemployment Insurance Board, which entered into force on 1 September 2004. It appears that jobseekers, after 100 days on unemployment benefit, must accept any suitable job even if it was outside their previous profession and training. If a jobseeker rejects an offer of suitable work without acceptable reasons, the daily unemployment benefit will be reduced for the first refusal by 25 per cent for the period of 40 days of compensation and for the second refusal by 50 per cent for the next 40 days; in case of the third refusal the entitlement to the benefit is terminated. In determining the suitability of the work offered on such conditions reasonable consideration is given to the applicant’s capacity for the work and other personal circumstances, such as age, health and local family ties. No additional information was provided on these new developments in the 2011 report of the Government. The Committee observes that the above changes might devoid the concept of “suitable employment”, on which the Convention is based, of its role of protecting the professional and social status of jobseekers during the prescribed initial period of unemployment.

As regards the situation in law, the Committee notes that, according to section 3 of the Swedish Unemployment Insurance Board’s Regulations on the application of section 11 of the Unemployment Insurance Act (1997:238) regarding suitable work, IAFFS 2004:3, as amended, the applicant must apply for and accept available and suitable work. An assessment of what may be deemed to constitute work that is suitable for the applicant shall be made taking into consideration the supply of job opportunities throughout the entire labour market. The Unemployment Insurance Board’s Annotations on section 11 of the Unemployment Insurance Act specify that unemployment insurance is not an insurance of one’s profession. This means that the applicant may not limit the search for work within their profession or education. What is deemed to be suitable work shall be assessed in the light of the labour market supply of vacant jobs and demand for labour. While the applicant’s experience shall be taken into account so as to avoid unnecessary changes of occupation, section 7 of the Regulations stipulates that an offer of work or directed work that does not correspond to the applicant’s training and occupational experience is not unsuitable for that reason alone, and section 8 makes it clear that, if the employer considers that the applicant’s qualifications are sufficient and wishes to employ him or her, the work shall be deemed to be suitable even if the applicant makes another assessment of his or her knowledge and skills. The Committee observes that the above provisions have the effect of depriving the worker of the possibility of protecting his education, professional skills and experience during the initial period of unemployment limited by Article 19(2) of the Convention to 26 weeks. They also formally relieve the Swedish Public Employment Service (PES) of its responsibility under Part II of the Convention to assist unemployed persons to obtain new work which is suitable to their professional qualifications through directing its efforts to maintaining and improving the professional quality of the labour force. The Committee wishes to stress that the concept of suitable employment works as a guarantee against the deregulation of the labour market to the point when it will compel jobseekers to accept any unsuitable job, as well as against the reduction of the role of the PES to act only as a labour supply agency satisfying the demands of the employers irrespective of the jobseekers’ own assessment of their professional and social status.

When it comes to the practical application of the above legal rules, the Government’s report explains that the PES official and the jobseeker discuss what constitutes a suitable job, so as to be able, within 30 days of the start of unemployment, to draw up an action plan that identifies the fastest and best way of finding a new job for the unemployed person. In this action plan, the jobseeker can specify an interest in different fields of work within a geographical area. After a discussion with the jobseeker, the PES makes an assessment of the jobs that are suitable based on the jobseeker’s experience and training. An instruction from the PES to the jobseeker to take up a suitable job is issued if the job in question is compatible with the jobseeker’s skills. While noting that these practices satisfy the requirements of the Convention, the Committee observes the existence in Sweden of the mismatch between law and practice, where the law has been changed to formally abolish the protection of the jobseekers’ professional qualification, while the PES continues to base its job offers on matching them to the jobseeker’s actual experience and training. As regards the situation in practice, the Government gives examples of determining the suitability of employment by the Public Employment Service and expresses the opinion that the applicant’s opportunity to protect his/her education, working skills and working experience during the initial period of unemployment is met through the existing arrangements. In order to make this opportunity clear also from the legal point of view, the Committee asks the Government to inform the Public Employment Service of the international obligation assumed by Sweden under Article 21(2) of the Convention, to determine the suitability of employment by taking into account to an appropriate extent, alongside the labour market situation, the applicants’ acquired experience and length of service in their former occupation. The Committee would also like to request the Government to provide statistical information on the number of persons whose unemployment benefits have been reduced or suspended according to section 45(a) of the Unemployment Insurance Act.

Article 25. Adjustment of social security schemes to part-time workers. Since 1 January 2009, unemployment benefits are also being paid to part-time workers who have been granted unpaid leave in order to perform other work at an equal or higher rate, provided that the positions cannot be combined. Also, as of 5 July 2010, a new regulation was introduced which codifies a practice of the Unemployment Insurance Funds that entitles workers to unemployment benefits when they combine part-time work for at least 17 hours per week with self employment for a maximum of ten hours per week. The Committee would like the Government to indicate the period during which unemployment benefits shall be paid in these cases.

Article 27. Complaints and appeals procedures. In its 2008 report, the Government provided information on the applicable procedures in the Unemployment Insurance Funds. The Committee would be grateful if the Government would provide information about the procedures available to persons who are covered by the basic unemployment insurance.

Direct Request (CEACR) - adopted 2007, published 97th ILC session (2008)

Article 15, paragraph 1(a), of the Convention. The report states that the daily unemployment benefit payable by the income loss insurance depends on the beneficiary’s earnings prior to unemployment, subject to a maximum of SEK680 per day (SEK730 per day during the first 100 days) and a minimum of SEK320 per day. Unemployment benefit is paid for five days per week and is taxable. The Committee notes that the earnings-related unemployment benefit in Sweden is subjected to both types of limitation permitted under Article 15(1)(a) of the Convention as to the maximum for the amount of the benefit itself, as well as for the earnings taken into account for the calculation of the amount of the benefit. It recalls in this respect that the said maximums should be related, for example, to the wage of a skilled manual employee so as to ensure that the replacement level of the benefit attains at least 50 per cent of previous earnings for this category of workers. In order to assess that this is indeed the case, the Committee would like the Government to indicate the maximum amounts of previous earnings taken into account for the calculation of the level of daily unemployment benefit in relation to the wage of a skilled manual employee. It observes that, calculated on a monthly basis, the maximum amount of the unemployment benefit itself is fixed much below the monthly earnings of a skilled manual employee (SEK22,840 in 2006) given by the Government in its latest report on Convention No. 102. It therefore asks the Government to calculate on a monthly basis the real replacement level of the earnings-related unemployment benefit paid to a skilled manual employee after 100 days of compensation, taking into account the provisions of Article 15(3) of the Convention, if appropriate. Please indicate also cases in which the income loss insurance pays out only the minimum benefit of SEK320 per day.

Article 15, paragraph 1(b). According to the report, unemployment benefits in the obligatory basic insurance are paid at a basic rate of SEK320 per day. Please indicate whether this basic rate attains the level prescribed by the Convention in respect of benefits which are not based on contributions or previous earnings.

Article 20(b), (c) and (e). The report indicates that the entitlement to benefit shall be suspended if the applicant has left work without valid cause or owing to improper conduct, or denied if the applicant deliberately or by gross negligence has provided incorrect or misleading information concerning his or her entitlement. Taking into account numerous amendments of the legislation during the period covered by the report (1998–2006), the Committee would like the Government to indicate any changes that might have occurred in the definitions of the abovementioned concepts of “valid cause”, “improper conduct” and “gross negligence”, in the light of the corresponding provisions of this Article of the Convention.

Article 21 of the Convention (in relation to Article 19, paragraph 3). The report indicates that the daily unemployment benefit will be reduced if an applicant has rejected an offer of suitable work without acceptable reasons. For the first refusal, the benefit is reduced by 25 per cent for the period of 40 days of compensation; for the second refusal, the reduction will amount to 50 per cent for the next 40 days; and in case of the third refusal, the entitlement to the benefit is terminated. In determining the suitability of the work offered on such conditions, reasonable consideration shall be given to the applicant’s capacity for the work and other personal circumstances. The kind of work a jobseeker must seek and accept and the limitations applicable thereto are further specified in the regulations on suitable work (IAFFS 2004:3) issued by the Swedish Unemployment Insurance Board, which entered into force on 1 September 2004. It appears in particular that a jobseeker, after 100 days on unemployment benefit, must accept any suitable job even if it was outside the previous profession and training of the jobseeker. The benefit being paid for five days per week, the Committee understands that 100 days of payment of unemployment benefit would correspond to the period of 20 calendar weeks. It would therefore like the Government to explain to what extent, in assessing the suitability of employment offered during the initial period of protection of not less than 26 calendar weeks prescribed in Article 19(3) of the Convention, account is taken of such criteria mentioned in its Article 21(2) as the length of service of unemployed persons in their previous occupation, their acquired experience and the current labour market situation in their place of residence. In this respect, the Committee draws the Government’s attention to the fact that, in the six weeks following the first 100 days of unemployment benefit, applying sanctions for refusal to accept a job offer which, in terms of the said criteria, could not be considered suitable might come in contradiction with the said Articles of the Convention, which aim at protecting the professional and social status of jobseekers during the prescribed period of unemployment. In order to be able to assess the practical impact of the above regulations on suitable work, the Committee would like the Government to provide detailed statistical data since their entry into force in 2004, on the number of cases in which sanctions were applied for refusal of “suitable” work offers before and after the first 100 days of compensation, as well as on the number of appeals lodged and upheld against these decisions. Please provide a copy of these regulations and of any additional guidelines for the deciding officers determining the suitability of the work offered, the limitations applicable thereto and the reasons for refusing it which might be deemed acceptable according to the established practice.

Article 26. Taking into account that the report does not contain any information on the application of this Article of the Convention for the whole period under review (1998–2006), the Committee hopes that the Government would provide such information for examination at its next session in November 2008.

[The Government is asked to reply in detail to the present comments in 2008.]

Direct Request (CEACR) - adopted 2006, published 96th ILC session (2007)

In its previous comments, the Committee asked the Government to explain the new design of the employment injury benefit covered by sickness insurance and work injury compensation, as well as the trends showing substantial reduction in the number of claims submitted and accepted for compensation. In this connection, the Committee notes an extract from the Annual Report 2005 of the new Swedish Social Insurance Agency, which has administered the national social insurance schemes since 1 January 2005, and the other publications supplied by the Government together with its report. Concerning compensation for incapacity for work, the Annual Report states (page 18) “the Government’s long-term target is to halve absence from work due to ill health by 2008, based on the figure for 2002. At the same time, the number of new cases of sickness benefit and activity allowance should decline”. The statistics show that the number of work injury annuities, which dropped sharply after 1993 due to the introduction of much stricter criteria for approval of a work injury, continued to decline. However, the Report concludes (page 19) that “the result development for occupational injury insurance is unsatisfactory. The Swedish Social Insurance Agency has not achieved its target of consistency in decision-making on annuities and the processing time in the country as a whole is unacceptably long. The work of change has been going on throughout the year under the management of the new collective authority”. In view of the ongoing changes in the organization and management of the employment injury branch in Sweden, the Committee would like the Government to request the Swedish Social Insurance Agency to explain its targets and criteria in administering the schemes concerned as regards both the quantity and the quality of the benefits provided.

Observation (CEACR) - adopted 2006, published 96th ILC session (2007)

In its previous observation, the Committee asked the Government to abolish a one-day waiting period for the payment of the incapacity benefit to a victim of an employment injury, in accordance with Article 9, paragraph 3, of the Convention. The Committee notes with satisfaction that, according to the Government’s report, persons with work injuries occurring after 1 January 2003 can obtain compensation for the waiting day under the Sick Pay Act.

Direct Request (CEACR) - adopted 2004, published 93rd ILC session (2005)

The Committee notes that the Government’s report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its previous direct request, which read as follows:

The Committee notes the information provided by the Government in its report, as well as its reply to the Committee’s previous comments. It has also taken into account the information contained in the annual reports on the application of the European Code of Social Security by Sweden.

1. Pension reform. The Committee notes the important changes brought to the old-age, invalidity and survivors’ benefits by the pension reform adopted by the Parliament in 1998, which has introduced such new concepts as basing pensions on lifelong earnings, including income from employment, business activities and social security benefits; crediting of amounts for periods of child care, national service and disability for which pension contributions are paid in full by the State or the relevant social insurance scheme; flexible retirement age with no upper age limit; indexation of pensions to real income growth; guaranteed state pensions for those who have not earned pensions considered to be sufficient; calculating actual pension with regard to the remaining life expectancy of the person concerned; possibility for the capital accumulated in individual savings accounts to be claimed in the form of a pre-funded pension or used for investment in security funds; transferability of pre-funded pension rights between married or registered partners, etc. The new pension system includes three components: (1) PAYG public pension scheme providing income-related pensions, which have replaced a former national supplementary pension (ATP); (2) premium reserve funds providing a pre-funded pension financed from the savings on individual pension accounts; and (3) a guaranteed pension provided from the state budget as basic security for low income earners, which has replaced the former basic pension (FP). Out of the total pension contributions representing 18.5 per cent of the individual’s lifetime income, 16 per cent is used to finance pension payments under the PAYG scheme in the same year, while 2.5 per cent is saved and earns interest in an individual premium reserve account. While the old supplementary pension system was a typical defined benefit system, the reformed PAYG scheme and the premium reserve scheme are defined contribution schemes. The reformed old-age pensions system, which came into force on 1 January 1999, is being introduced gradually over an extended transitional period. Those born in 1937 and earlier will receive their ATP pension entirely according to old rules. Those born between 1938 and 1953 will have part of their pension calculated according to the rules of the old system and part according to the new rules, subject to a special guarantee rule that they will be entitled to at least the pension they have earned under the old rules up to the adoption of the pension reform by Parliament in 1994. Those born in 1954 or later will receive pensions entirely according to the new rules. The first payment under the reformed old-age pension system took place in January 2001.

The reform of the old age-pension was followed by changes in other social security branches. The new legislation on survivors’ pensions and support for children adopted in 2000 will enter into force from 1 January 2003, together with other laws related to the pension reform in Sweden. Under this legislation, the text of which has been supplied by the Government, the special survivors’ pension will be abolished, while the adjustment pension will be paid to a surviving spouse who at the time of the death of the other spouse lived together with a child under 18 years of age, instead of 12 years as before. In the spring of 2001, the Government put forward proposals designed to bring existing disability pensions into line with the new old-age pension system and the new rules are expected to enter into force from January 2003. A further government proposal to reform work injury insurance was to be presented in the autumn of 2001. Furthermore, a new Social Insurance Act, the text of which has been also supplied by the Government, entered into force on 1 January 2001 and divided the social security system (except unemployment insurance) into two parts: a residence-based insurance scheme providing guaranteed amounts and benefits and a work-related insurance scheme against loss of income. The dividing line corresponds largely to the difference between contributory and non-contributory benefits schemes. Both categories of benefits apply equally to all persons regardless of nationality who are habitually resident or work in Sweden. Work-related benefits are no longer related to residence in Sweden and the Act contains provisions on work, studies or stays abroad.

The Committee takes due note of this information. It notes that the reform measures have been accompanied by changes in the nature and methods of calculation of certain benefits. Taking into account that many of the new provisions concerning long-term benefits have not yet entered into force, the Committee would like the Government to continue to supply information on the reform process and to present a detailed report on the state of its legislation and practice in the invalidity, old-age and survivors’ benefit branches in 2004. Please also explain the new methods of the calculation of benefits and provide the necessary statistics in the manner requested by the report form on the Convention, together with an English translation of the new legislation, if available.

2. New mechanism for the revision of benefits. Article 29 of the Convention in relation to Parts III (Old-age benefit) and IV (Survivors’ benefit). According to the final report on "The pension reform in Sweden", June 1998, the old benefit formula for calculating pensions demanded an economic growth of approximately 2 per cent annually; with slower growth increased contributions to the system were necessary. While during the 1960s GDP increased by over 3.7 per cent per year, since 1975 average annual growth has been less than 2 per cent. Furthermore, the fluctuations in the business cycle have been increasingly large. The low rate of growth in the past two decades combined with growing instability and an increasing number of pensioners receiving higher pensions has exposed the weakness of the system and the need to reform it. Consequently, the mechanism of the adjustment of pensions has been changed. In the old system, to ensure that pensions did not depreciate as a result of inflation, both earned pension rights and pension payments were adjusted to price trends on the basis of changes in the consumer price index. This was done automatically by indexing the base amount used for the calculation of pensions. However, such indexation of pensions, which maintained their purchasing power in conditions of the decline or very small increase in real earnings in the country, has sharply increased the cost of the pension system for the working population. In the new pension system designed for conditions of low growth, contributions to the PAYG scheme as well as the payouts from that scheme were linked directly to economic growth. In place of price trends the value of pensions shall now follow the development of average income for the working population, so that the costs of the pension system will be automatically adjusted to the overall resources of the national economy. This is done by adjusting the base amount not to changes in the consumer price index but to changes in the new economic adjustment index, which reflects average income growth in the economy.

Thus, as regards the PAYG scheme, if real average income increases, the value of the income-related pension rights will also increase. If real earnings fall, the value of the rights will also decrease; in fact, it may be lower in terms of purchasing power than at the time of payment of the contribution. When the new pension is computed, the pensioner will be credited with an assumed future growth in real wages; the adjustment of the pension will be done subsequently on the basis of how actual growth compares with the assumed growth for this year. At present, indexation of pension payments is based on a notional future growth rate of 1.6 per cent, which is called the "norm". If real growth is equal to the norm, pensions will be adjusted upwards by a percentage equal to that of inflation. If real growth is higher than the norm, pensions will be adjusted upwards by the rise in prices plus the rate of real growth in excess of 1.6 per cent, which will give pensioners not only full compensation for inflation but also a share of the growth in real wages enjoyed by the economically active. However, if real growth is lower than the norm, full compensation will not be made for price increases and inflation, which means that pensions will fall in real terms.

According to the Government, the new adjustment mechanism relates only to old-age pensions and, from 2004, to survivors’ benefits, and that other benefits that were part of the former pension system, such as injury and invalidity benefits, have been separated from the new pension system. These benefits are still recalculated every year in accordance with changes in consumer prices. Furthermore, in the new pension scheme there is a guaranteed pension, which is designed to secure a minimum standard of living for pensioners and is also recalculated every year in accordance with changes in consumer prices. The existence of the guaranteed pension protects not only those with low lifetime incomes in respect of the level of their pensions, it also protects those with the lowest pensions from any decline in the real value of their pensions due to a growth in real wages of less than 1.6 per cent. On the other hand, these individuals will not benefit from any real growth in average wages of over 1.6 per cent. The guaranteed pension is calculated on the basis of the price-related base amount, which is adjusted every year in line with changes in consumer prices. It is reduced to zero for persons receiving a public earnings-related pension worth 3.07 price-related base amounts per year, who are therefore the only category of pensioners fully exposed to the risks of a slower growth in real average wages than 1.6 per cent per year. According to the Government, it is inevitable that pensioners in normal/higher income brackets are exposed to the risk of slow economic growth in view of the size of the earnings-related pension liability, which amounts to 250.6 per cent of GDP. A liability of this order cannot be guaranteed by public funds and the Government/taxpayers cannot guarantee the purchasing power of all earnings-related pensions irrespective of the rate of economic growth in Sweden. The Government considers that the above system represents a good balance between social and financial concerns, which automatically directs more resources to maintaining the purchasing power of low-income pensioners when growth is slack.

The Committee notes this information. It appears from the above explanations that, in difference with the old pension system, which was established in a rapidly and stably growing economy, the new pension system in Sweden is designed to function in conditions of low and unstable economic growth and to absorb the frequent fluctuations in the business cycle, subject to inflation being kept under control. This is achieved by replacing the defined benefit system with the defined contribution system, which permits to contain pension costs by turning the real value of pension assets from a "constant" into a "variable" depending upon the overall economic performance. Changing the adjustment principle from indexation to prices to indexation to real economic growth appears to be the logical consequence of this reform. The new mechanism for the revision of benefits however concerns only one of the three components of the reformed pension system, namely income-related pensions provided by the PAYG scheme. In the premium reserve scheme there is no need to index the pension capital because the interest is straightforward and consists of the yield from investments, while the new guarantee pension, in the same way as the basic pension before it, continues to be pegged to changes in consumer prices, thereby maintaining the purchasing power of pensioners of small means. To better appraise the design of the new pension system, the Committee would like the Government to provide statistics on the number of persons receiving the guaranteed pension in relation to the total number of old-age pensioners in Sweden.

As regards the new adjustment mechanism for income-related pensions, the Committee observes that, where the rate of economic growth in the country over the previous year does not reach the established norm (currently 1.6 per cent), pensions are adjusted downwards, decreasing their real purchasing power at the moment when it particularly needs to be safeguarded. It further notes that during the transitional period until 2030, this "norm" in economic adjustment indexing will be financially important, as the index will also apply to pensions calculated according to the old rules and will directly affect their value. In view of the fact that establishing a relatively high "norm" of economic growth would mean a relatively high risk of successive decreases in the real value of the pension, the Committee would like the Government to explain how this "norm" is determined in order to ensure the most realistic assumption of future economic growth.

Finally, as regards the consequences of the new adjustment mechanism, the Committee notes that, as stated in the final report on "The pension reform in Sweden", "when times are bad, pensioners bear their share of the burden. In good times, they benefit from the rise in living standards" (page 14). The Committee wishes to recall in this respect that the aim of the mechanism of the adjustment of benefits established by Article 29 of the Convention consists both in maintaining the purchasing power of benefits "when times are bad" by adjusting pensions to substantial changes in the cost of living, and raising the standard of living of pensioners "in good times" by adjusting pensions to substantial changes in the general level of earnings. With this in mind, the Committee would like the Government to explain in its next report the manner in which current periodical payments in respect of old age and death of a breadwinner were reviewed and to provide detailed statistics required by the report form under Article 29, for the same time period, based not only on the new economic adjustment index, but also on the traditional cost-of-living indices reflecting changes in consumer prices. As regards old-age benefit, please give data separately for the income-related pension and the guaranteed pension.

[The Government is requested to report in detail in 2005.]

Direct Request (CEACR) - adopted 2002, published 91st ILC session (2003)

The Committee notes the information provided by the Government in its report, as well as its reply to the Committee’s previous comments. It has also taken into account the information contained in the annual reports on the application of the European Code of Social Security by Sweden.

1. Pension reform. The Committee notes the important changes brought to the old-age, invalidity and survivors’ benefits by the pension reform adopted by the Parliament in 1998, which has introduced such new concepts as basing pensions on lifelong earnings, including income from employment, business activities and social security benefits; crediting of amounts for periods of child care, national service and disability for which pension contributions are paid in full by the State or the relevant social insurance scheme; flexible retirement age with no upper age limit; indexation of pensions to real income growth; guaranteed state pensions for those who have not earned pensions considered to be sufficient; calculating actual pension with regard to the remaining life expectancy of the person concerned; possibility for the capital accumulated in individual savings accounts to be claimed in the form of a pre-funded pension or used for investment in security funds; transferability of pre-funded pension rights between married or registered partners, etc. The new pension system includes three components: (1) PAYG public pension scheme providing income-related pensions, which have replaced a former national supplementary pension (ATP); (2) premium reserve funds providing a pre-funded pension financed from the savings on individual pension accounts; and (3) a guaranteed pension provided from the state budget as basic security for low income earners, which has replaced the former basic pension (FP). Out of the total pension contributions representing 18.5 per cent of the individual’s lifetime income, 16 per cent is used to finance pension payments under the PAYG scheme in the same year, while 2.5 per cent is saved and earns interest in an individual premium reserve account. While the old supplementary pension system was a typical defined benefit system, the reformed PAYG scheme and the premium reserve scheme are defined contribution schemes. The reformed old-age pensions system, which came into force on 1 January 1999, is being introduced gradually over an extended transitional period. Those born in 1937 and earlier will receive their ATP pension entirely according to old rules. Those born between 1938 and 1953 will have part of their pension calculated according to the rules of the old system and part according to the new rules, subject to a special guarantee rule that they will be entitled to at least the pension they have earned under the old rules up to the adoption of the pension reform by Parliament in 1994. Those born in 1954 or later will receive pensions entirely according to the new rules. The first payment under the reformed old-age pension system took place in January 2001.

The reform of the old age-pension was followed by changes in other social security branches. The new legislation on survivors’ pensions and support for children adopted in 2000 will enter into force from 1 January 2003, together with other laws related to the pension reform in Sweden. Under this legislation, the text of which has been supplied by the Government, the special survivors’ pension will be abolished, while the adjustment pension will be paid to a surviving spouse who at the time of the death of the other spouse lived together with a child under 18 years of age, instead of 12 years as before. In the spring of 2001, the Government put forward proposals designed to bring existing disability pensions into line with the new old-age pension system and the new rules are expected to enter into force from January 2003. A further government proposal to reform work injury insurance was to be presented in the autumn of 2001. Furthermore, a new Social Insurance Act, the text of which has been also supplied by the Government, entered into force on 1 January 2001 and divided the social security system (except unemployment insurance) into two parts: a residence-based insurance scheme providing guaranteed amounts and benefits and a work-related insurance scheme against loss of income. The dividing line corresponds largely to the difference between contributory and non-contributory benefits schemes. Both categories of benefits apply equally to all persons regardless of nationality who are habitually resident or work in Sweden. Work-related benefits are no longer related to residence in Sweden and the Act contains provisions on work, studies or stays abroad.

The Committee takes due note of this information. It notes that the reform measures have been accompanied by changes in the nature and methods of calculation of certain benefits. Taking into account that many of the new provisions concerning long-term benefits have not yet entered into force, the Committee would like the Government to continue to supply information on the reform process and to present a detailed report on the state of its legislation and practice in the invalidity, old-age and survivors’ benefit branches in 2004. Please also explain the new methods of the calculation of benefits and provide the necessary statistics in the manner requested by the report form on the Convention, together with an English translation of the new legislation, if available.

2. New mechanism for the revision of benefits. Article 29 of the Convention in relation to Parts III (Old-age benefit) and IV (Survivors’ benefit). According to the final report on "The pension reform in Sweden", June 1998, the old benefit formula for calculating pensions demanded an economic growth of approximately 2 per cent annually; with slower growth increased contributions to the system were necessary. While during the 1960s GDP increased by over 3.7 per cent per year, since 1975 average annual growth has been less than 2 per cent. Furthermore, the fluctuations in the business cycle have been increasingly large. The low rate of growth in the past two decades combined with growing instability and an increasing number of pensioners receiving higher pensions has exposed the weakness of the system and the need to reform it. Consequently, the mechanism of the adjustment of pensions has been changed. In the old system, to ensure that pensions did not depreciate as a result of inflation, both earned pension rights and pension payments were adjusted to price trends on the basis of changes in the consumer price index. This was done automatically by indexing the base amount used for the calculation of pensions. However, such indexation of pensions, which maintained their purchasing power in conditions of the decline or very small increase in real earnings in the country, has sharply increased the cost of the pension system for the working population. In the new pension system designed for conditions of low growth, contributions to the PAYG scheme as well as the payouts from that scheme were linked directly to economic growth. In place of price trends the value of pensions shall now follow the development of average income for the working population, so that the costs of the pension system will be automatically adjusted to the overall resources of the national economy. This is done by adjusting the base amount not to changes in the consumer price index but to changes in the new economic adjustment index, which reflects average income growth in the economy.

Thus, as regards the PAYG scheme, if real average income increases, the value of the income-related pension rights will also increase. If real earnings fall, the value of the rights will also decrease; in fact, it may be lower in terms of purchasing power than at the time of payment of the contribution. When the new pension is computed, the pensioner will be credited with an assumed future growth in real wages; the adjustment of the pension will be done subsequently on the basis of how actual growth compares with the assumed growth for this year. At present, indexation of pension payments is based on a notional future growth rate of 1.6 per cent, which is called the "norm". If real growth is equal to the norm, pensions will be adjusted upwards by a percentage equal to that of inflation. If real growth is higher than the norm, pensions will be adjusted upwards by the rise in prices plus the rate of real growth in excess of 1.6 per cent, which will give pensioners not only full compensation for inflation but also a share of the growth in real wages enjoyed by the economically active. However, if real growth is lower than the norm, full compensation will not be made for price increases and inflation, which means that pensions will fall in real terms.

According to the Government, the new adjustment mechanism relates only to old-age pensions and, from 2004, to survivors’ benefits, and that other benefits that were part of the former pension system, such as injury and invalidity benefits, have been separated from the new pension system. These benefits are still recalculated every year in accordance with changes in consumer prices. Furthermore, in the new pension scheme there is a guaranteed pension, which is designed to secure a minimum standard of living for pensioners and is also recalculated every year in accordance with changes in consumer prices. The existence of the guaranteed pension protects not only those with low lifetime incomes in respect of the level of their pensions, it also protects those with the lowest pensions from any decline in the real value of their pensions due to a growth in real wages of less than 1.6 per cent. On the other hand, these individuals will not benefit from any real growth in average wages of over 1.6 per cent. The guaranteed pension is calculated on the basis of the price-related base amount, which is adjusted every year in line with changes in consumer prices. It is reduced to zero for persons receiving a public earnings-related pension worth 3.07 price-related base amounts per year, who are therefore the only category of pensioners fully exposed to the risks of a slower growth in real average wages than 1.6 per cent per year. According to the Government, it is inevitable that pensioners in normal/higher income brackets are exposed to the risk of slow economic growth in view of the size of the earnings-related pension liability, which amounts to 250.6 per cent of GDP. A liability of this order cannot be guaranteed by public funds and the Government/taxpayers cannot guarantee the purchasing power of all earnings-related pensions irrespective of the rate of economic growth in Sweden. The Government considers that the above system represents a good balance between social and financial concerns, which automatically directs more resources to maintaining the purchasing power of low-income pensioners when growth is slack.

The Committee notes this information. It appears from the above explanations that, in difference with the old pension system, which was established in a rapidly and stably growing economy, the new pension system in Sweden is designed to function in conditions of low and unstable economic growth and to absorb the frequent fluctuations in the business cycle, subject to inflation being kept under control. This is achieved by replacing the defined benefit system with the defined contribution system, which permits to contain pension costs by turning the real value of pension assets from a "constant" into a "variable" depending upon the overall economic performance. Changing the adjustment principle from indexation to prices to indexation to real economic growth appears to be the logical consequence of this reform. The new mechanism for the revision of benefits however concerns only one of the three components of the reformed pension system, namely income-related pensions provided by the PAYG scheme. In the premium reserve scheme there is no need to index the pension capital because the interest is straightforward and consists of the yield from investments, while the new guarantee pension, in the same way as the basic pension before it, continues to be pegged to changes in consumer prices, thereby maintaining the purchasing power of pensioners of small means. To better appraise the design of the new pension system, the Committee would like the Government to provide statistics on the number of persons receiving the guaranteed pension in relation to the total number of old-age pensioners in Sweden.

As regards the new adjustment mechanism for income-related pensions, the Committee observes that, where the rate of economic growth in the country over the previous year does not reach the established norm (currently 1.6 per cent), pensions are adjusted downwards, decreasing their real purchasing power at the moment when it particularly needs to be safeguarded. It further notes that during the transitional period until 2030, this "norm" in economic adjustment indexing will be financially important, as the index will also apply to pensions calculated according to the old rules and will directly affect their value. In view of the fact that establishing a relatively high "norm" of economic growth would mean a relatively high risk of successive decreases in the real value of the pension, the Committee would like the Government to explain how this "norm" is determined in order to ensure the most realistic assumption of future economic growth.

Finally, as regards the consequences of the new adjustment mechanism, the Committee notes that, as stated in the final report on "The pension reform in Sweden", "when times are bad, pensioners bear their share of the burden. In good times, they benefit from the rise in living standards" (page 14). The Committee wishes to recall in this respect that the aim of the mechanism of the adjustment of benefits established by Article 29 of the Convention consists both in maintaining the purchasing power of benefits "when times are bad" by adjusting pensions to substantial changes in the cost of living, and raising the standard of living of pensioners "in good times" by adjusting pensions to substantial changes in the general level of earnings. With this in mind, the Committee would like the Government to explain in its next report the manner in which current periodical payments in respect of old age and death of a breadwinner were reviewed and to provide detailed statistics required by the report form under Article 29, for the same time period, based not only on the new economic adjustment index, but also on the traditional cost-of-living indices reflecting changes in consumer prices. As regards old-age benefit, please give data separately for the income-related pension and the guaranteed pension.

[The Government is requested to report in detail in 2004.]

Observation (CEACR) - adopted 2000, published 89th ILC session (2001)

In its previous observation the Committee asked the Government to provide full information, including statistics, permitting an assessment of the changes in the definition of employment injury and in the burden of proof introduced since 1993, in the light of Article 8 of the Convention, as well as the abolition of a one-day waiting period for the payment of the cash benefits for incapacity for work due to a victim of an employment injury, in accordance with Article 9(3). In reply, the Government indicates that a new Work Injuries Commission was appointed in 1997, which had in particular to analyse the last few years’ changes in the work injury insurance legislation and to consider the definition of a work injury. This Commission dealt also with the problem of the waiting day rule applied to cases where short-term sickness was related to employment and presented various solutions which could be considered in order to meet the requirements of the Convention. The report of the Commission has been circulated for comment. While new demands have been made for changes to the insurance, adequate solutions have proved hard to find as regards both the waiting day question and certain other matters. For these reasons, work is still in progress on work injury insurance and its future design. In conclusion, the Government states its intention to introduce a bill on the subject in the spring of 2000.

The Committee notes this information, as well as certain judicial decisions and detailed statistics on the number of work injury claims filed, assessed, accepted and rejected over the last 18 years supplied by the Government with its report. It observes that since the introduction of the new rules in 1993, in 1998 the total number of reported work injury insurance cases and of those reported for decision decreased by more than half, while the number of accepted claims decreased by two-thirds. The Committee would like the Government to explain in its next report the reasons for such a drastic reduction in the number of claims submitted and accepted for compensation. The Committee would also like to be kept fully informed on the results of the discussions on the future design of the work injury insurance and on the measures taken in consequence. It trusts that in elaborating the new structure of sickness and work injury insurance, the Government will be able to find solutions which will ensure payment of the employment injury cash benefit from the first day of incapacity, in accordance with Article 9(3) of the Convention, and in all cases covered by Article 8 and Schedule I to the Convention.

Observation (CEACR) - adopted 1999, published 88th ILC session (2000)

The Committee notes that the Government's report has not been received. It must therefore repeat its previous observation which read as follows:

With reference to its previous observation, the Committee notes the detailed report of the Government, requested as a follow-up of the recommendations made by the committee set up to examine the representation made under article 24 of the ILO Constitution by the Swedish Trade Union Confederation (LO), the Swedish Confederation of Professional Employees (TCO) and the International Confederation of Free Trade Unions (ICFTU), approved by the Governing Body at its 258th Session (November 1993). Article 8 of the Convention. In reply to the questions raised in paragraph 47(b) of the report of the above-mentioned committee concerning changes in the definition of employment injury and in the burden of proof in such cases, the Government states in its report that no test cases have been decided and no evaluation has yet been made of the effects of the changes in the work injury concept and the burden of proof in work injury cases. However, in its report on Convention No. 102, the Government adds that "it can be assumed that in a considerably greater number of cases compensation will be denied in the future that has been the case to date". In this situation, the Committee trusts that the Government would not fail to supply in its next report full information on all the points mentioned in the said paragraph 47(b), including judicial decisions and statistics on the number of cases in which compensation has been denied according to the new rules, as soon as this information is available. Article 9, paragraph 3. As regards the abolition of a one-day waiting period for payment of employment injury cash benefit, the Government indicates that such a measure would entail a far-reaching and administratively burdensome change of system. The resulting obligation for the social insurance service to assess all work injuries reported, and not only those entailing a permanent reduction of working capacity and an entitlement to an annuity, as it is done now, would limit the benefits resulting from the coordination with health insurance, increase the cost and the administrative overheads of work injury insurance. Due to the present state of government finances, the Government has not found it possible to introduce such special arrangements for short and medium-length illnesses resulting from work injuries and, hence, to abolish the waiting day. On the other hand, the Government indicates that in its Spring Economic Policy Bill (Prop. 1995/96:150), it announced an increase in benefit level, as from 1998, to 80 per cent of qualifying income. Moreover, in the final report of the committee for a new structure for sickness and occupational injury insurance (SAK) it is recommended that, while there should be a 90-day period of coordination with health insurance, in the event of accidental injury, a work injury sickness benefit should be introduced which, together with regular sickness allowance, will equal 98 per cent of the qualifying income. The comments on this report are currently being processed by the Government which will be taking a policy decision on the future structure of work injury insurance. The Committee notes this information. It also notes that, in its comments on the Government's report, dated 9 April 1997, the Swedish Trade Union Confederation finds the maintenance of a one-day waiting period with respect to employment injury benefit unacceptable and in violation with the Convention and states that the Government still has no plans to give compensation from the first day. The Committee is fully aware of the financial and administrative costs involved in suppressing a one-day waiting period, as well as of the efforts taken by the Government to restore the level of benefits which was previously reduced due to the state of government finances. In this respect it notes, in particular, the abovementioned proposal of SAK to introduce, in addition to the regular sickness allowance, a special work injury sickness benefit for those suffering employment injuries. The Committee hopes that, in considering this proposal in the overall new structure of sickness and occupational injury insurance, it will be possible for the Government to implement it in such a manner as to ensure that the cash benefits for incapacity for work due to a victim of an employment injury are paid from the first day of incapacity, in accordance with Article 9, paragraph 3, of the Convention. The Government is asked to indicate the progress made in its next report.

The Committee hopes that the Government will make every effort to take the necessary action in the very near future.

Direct Request (CEACR) - adopted 1997, published 86th ILC session (1998)

Part VII (Family benefit), Article 44 of the Convention. The Committee notes, from the Government's report, that, with effect from 1 January 1996, the basic child allowance was lowered from SEK9,000 to SEK7,680 per child and year. In order to ascertain that the total value of the family benefits granted in Sweden continues to attain the level prescribed by the Convention, the Committee would like the Government to supply in its next report the statistical information requested by the report form under this Article of the Convention.

Direct Request (CEACR) - adopted 1997, published 86th ILC session (1998)

The Committee notes the information provided by the Government in its report as well as its reply to the Committee's previous comments.

1. Article 41 (in light of Article 21, paragraph 3(b), and Article 1(h)) of the Convention. (a) With reference to its previous comments, the Committee recalls that, in accordance with section 5 of Chapter 8 of the Act of 30 June 1988 to amend the National Insurance Act, entitlement for an adjustment pension is maintained for as long as the surviving spouse lives with a dependent child under 12 years of age, whereas under Article 21, paragraph 3(b), and Article 1(h) of the Convention, the right of a widow to a survivors' pension must be maintained for as long as she is caring for a dependent child of the deceased under school-leaving age or under 15 years of age, whichever is the higher, or under such higher age as may be prescribed when the child is an apprentice or student or is an invalid. In its latest report the Government indicates in this respect that in Sweden the compensation is linked to the child and not to the surviving spouse, and since, in the great majority of cases, the survivor is custodian, in practice the compensation goes to the family. It adds that survivors' pension in the form of child pension is paid to children aged under 18 years or 20 years, if the child is studying.

While noting this information, the Committee observes that there has so far been no change in the situation in law. Regarding the level of the survivors' pension in the form of child pension for two children over 12 years of age, it further observes that, according to the statistics provided by the Government, this pension would not attain the level of the survivors' benefit prescribed by the Convention for a standard beneficiary (a widow with two children). In this situation, the Committee would once again express the hope that the Government's next report will indicate progress achieved in national law and practice to secure full application of Article 21, paragraph 3(b), of the Convention. In the meantime, the Committee ventures to draw the Government's attention to the two possibilities opened in this respect which might consist in taking measures either to prolong the widow's entitlement to an adjustment pension until the child she is caring for reaches at least the school-leaving age, or such higher age as mentioned above, or to raise the amount of the child pension for children over 12 years of age, so that the amount of such pension for the children would attain the level of the survivors' benefit prescribed by the Convention for a standard beneficiary.

In the event, however, that the Government would wish to continue to prevail itself of Article 41 of the Convention, the Committee hopes that it would not fail to supply in its next report full information required by the report form under this Article, and in particular under points 2 and 3.

(b) The Committee notes from the 30th Government's report on the application of the European Code of Social Security that, as from 1 January 1997, the period of entitlement to adjustment pension of a surviving spouse has been reduced from one year to six months. However, if the survivor's work capacity is reduced by at least a quarter, a special survivor's pension is payable after the right to adjustment pension has expired. In view of these changes, the Committee would like the Government to provide in its next report information on the scope of application of the special survivor's pension in practice, indicating in particular the special circumstances in which it is payable, duration of payment, the extent to which age, state of health and work expectations of the surviving spouse are taken into consideration, as well as the number of cases in which applications for this pension were refused and the reasons thereof.

2. Part V (Standards to be complied with by periodical payments). (a) The Committee notes the statistical data concerning the estimation of the reference wage used in the calculation of the level of the benefits, which, according to the information provided in the report under Article 10 of the Convention, amounted in 1995 to SEK200,800 per year. Please indicate the method used in selecting the typical employee to whom corresponds the said reference wage.

(b) In relation with Parts IX (Invalidity benefit) and X (Survivors' benefit). The Committee notes from the Government's report that, following the adaptation of the pension legislation to the EC rules, nationals and non-nationals residing in Sweden are entitled to basic pension (FP) under the same conditions according to two alternatives. The pension is calculated either in relation to the number of years with pension points under the supplementary pension scheme (ATP) or in relation to years of residence in Sweden. A minimum of three years of fulfilment is required to be eligible to a pension. In order to be entitled to full FP-pension, 30 years with pensionable income or 40 years of residence are required. The Committee would like the Government to be requested to indicate as far as the amount of the FP-pension is concerned, whether account is taken of the period elapsing between the contingency (invalidity or death of breadwinner) and the pensionable age. Please also describe the applicable rules.

3. Part VI (Common provisions), Article 32, paragraph 1(a). The Committee understands from the text of Chapter 16, sections 4 and 13 of the Insurance Act, that supplementary pensions (ATP) may continue to be paid abroad, in case of residence of the beneficiary out of the country, if the latter so wishes. It requests the Government to confirm that this is in fact the case.

4. Finally, the Committee thanks the Government for supplying the most recent consolidated version in Swedish of the National Insurance Act and reserves the possibility to examine it once the translation of the necessary chapters would be available.

Observation (CEACR) - adopted 1997, published 86th ILC session (1998)

With reference to its previous observation, the Committee notes the detailed report of the Government, requested as a follow-up of the recommendations made by the committee set up to examine the representation made under article 24 of the ILO Constitution by the Swedish Trade Union Confederation (LO), the Swedish Confederation of Professional Employees (TCO) and the International Confederation of Free Trade Unions (ICFTU), approved by the Governing Body at its 258th Session (November 1993).

Article 8 of the Convention. In reply to the questions raised in paragraph 47(b) of the report of the above-mentioned committee concerning changes in the definition of employment injury and in the burden of proof in such cases, the Government states in its report that no test cases have been decided and no evaluation has yet been made of the effects of the changes in the work injury concept and the burden of proof in work injury cases. However, in its report on Convention No. 102, the Government adds that "it can be assumed that in a considerably greater number of cases compensation will be denied in the future that has been the case to date". In this situation, the Committee trusts that the Government would not fail to supply in its next report full information on all the points mentioned in the said paragraph 47(b), including judicial decisions and statistics on the number of cases in which compensation has been denied according to the new rules, as soon as this information is available.

Article 9, paragraph 3. As regards the abolition of a one-day waiting period for payment of employment injury cash benefit, the Government indicates that such a measure would entail a far-reaching and administratively burdensome change of system. The resulting obligation for the social insurance service to assess all work injuries reported, and not only those entailing a permanent reduction of working capacity and an entitlement to an annuity, as it is done now, would limit the benefits resulting from the coordination with health insurance, increase the cost and the administrative overheads of work injury insurance. Due to the present state of government finances, the Government has not found it possible to introduce such special arrangements for short and medium-length illnesses resulting from work injuries and, hence, to abolish the waiting day. On the other hand, the Government indicates that in its Spring Economic Policy Bill (Prop. 1995/96:150), it announced an increase in benefit level, as from 1998, to 80 per cent of qualifying income. Moreover, in the final report of the committee for a new structure for sickness and occupational injury insurance (SAK) it is recommended that, while there should be a 90-day period of coordination with health insurance, in the event of accidental injury, a work injury sickness benefit should be introduced which, together with regular sickness allowance, will equal 98 per cent of the qualifying income. The comments on this report are currently being processed by the Government which will be taking a policy decision on the future structure of work injury insurance. The Committee notes this information. It also notes that, in its comments on the Government's report, dated 9 April 1997, the Swedish Trade Union Confederation finds the maintenance of a one-day waiting period with respect to employment injury benefit unacceptable and in violation with the Convention and states that the Government still has no plans to give compensation from the first day.

The Committee is fully aware of the financial and administrative costs involved in suppressing a one-day waiting period, as well as of the efforts taken by the Government to restore the level of benefits which was previously reduced due to the state of government finances. In this respect it notes, in particular, the above-mentioned proposal of SAK to introduce, in addition to the regular sickness allowance, a special work injury sickness benefit for those suffering employment injuries. The Committee hopes that, in considering this proposal in the overall new structure of sickness and occupational injury insurance, it will be possible for the Government to implement it in such a manner as to ensure that the cash benefits for incapacity for work due to a victim of an employment injury are paid from the first day of incapacity, in accordance with Article 9, paragraph 3, of the Convention. The Government is asked to indicate the progress made in its next report.

Direct Request (CEACR) - adopted 1996, published 85th ILC session (1997)

The Committee notes that the Government's report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its previous direct request, which reads as follows:

1. Part IV (Survivors' benefit). The Committee notes the new system of survivors' pensions, which came into force on 1 January 1990, following the adoption of the Act of 30 June 1988 to amend the National Insurance Act. The Committee also notes the Government's statement that the new system of survivors' pensions is intended principally to take into account the new situation with regard to women on the labour market, and the changes in family structures and social conditions generally. Furthermore, the Committee notes that the new system is covered by transitional provisions which may be applied over a long period. While fully aware of the reasons which have led the Government to reform its survivors' benefit system and the fact that the new legislation applies to surviving spouses, a term which includes men and women who were permanently living together at the time of death, the Committee wishes to draw its attention to the following point.

Article 41 of the Convention (in light of Article 21, paragraph 3(b), and Article 1(h). By virtue of section 4, Chapter 8, of the above Act of 30 June 1988, a surviving spouse who has not reached the age of 65 years upon the death of the spouse is entitled to an adjustment pension for a period of one year if the spouse has a dependent child under 12 years of age of if they have lived uninterruptedly with the deceased spouse for a period of at least five years. In accordance with section 5 of Chapter 8, entitlement to an adjustment pension is maintained for as long as the surviving spouse lives with a dependent child under 12 years of age. Furthermore, a surviving spouse who fulfils the conditions for entitlement to an adjustment pension under section 4, Chapter 8, is entitled to a special survivors' pension if its capacity to obtain an income from work is reduced by at least half following the death of the spouse and the reduction is due to conditions on the labour market, to the surviving spouse's state of health or to any other comparable circumstances which are presumed not to be of short-term duration (Chapter 8, section 6). Similar provisions apply to supplementary pensions under Chapter 14 of the Act of 30 June 1988.

The Committee recalls that, in accordance with Article 21, paragraphs 2 and 3, of the Convention, the right of a widow to a survivors' pension must be recognized in the following three cases: (1) when the widow has reached a prescribed age, which may not be higher than the age prescribed for old-age benefit; (2) when the widow is an invalid; and (3) when the widow is caring for a dependent child of the deceased. The new Swedish legislation appears to ensure the application of this provision of the Convention with regard to the first two categories of widows. Such does not appear to be the case for a widow who is caring for dependent children, since, in accordance with Article 1(h) of the Convention, the term "child" covers: "(i) a child under school-leaving age or under 15 years of age, whichever is the higher; and (ii) a child under a prescribed age other than specified in clause (i) of this subparagraph and who is an apprentice or student or has a chronic illness or infirmity disabling him from any gainful activity, under prescribed conditions: provided that this requirement shall be deemed to be met where national legislation defines the term so as to cover any child under an age appreciably higher than that specified in clause (i) of this subparagraph".

The Committee hopes that the Government will be able to re-examine the matter in the light of the above. In the event that the Government continues to prevail itself of Article 41 of the Convention, to which it referred in its first report, the Committee requests the Government to supply the information required by the report form under this Article of the Convention, and in particular under points 2 and 3.

2. Part VI (Common provisions), Article 32, paragraph 1(a). The Committee would be grateful if the Government would indicate whether, and under which provisions, supplementary pensions continue to be provided in the event of the residence of the beneficiary abroad.

3. Furthermore, the Committee would be grateful if the Government would supply the text in Swedish and, if possible, in English of the most recent consolidated version of the National Insurance Act.

Direct Request (CEACR) - adopted 1996, published 85th ILC session (1997)

1. With reference to its previous comments, the Committee takes note of the information supplied by the Government in its report and, in particular, that concerning the application of Article 10, paragraph 2(b), Article 15, paragraph 1, Article 19, paragraph 6, and Article 24, paragraph 1, of the Convention.

2. With respect to new developments in unemployment protection in the period covered by the report, the Government mentions the introduction, with effect from 1 July 1994, of a universal and compulsory scheme of unemployment insurance. However, as from 1 January 1995, the rules of unemployment compensation in the Unemployment Insurance Act and the Cash Labour Market Assistance Act have been mainly restored to their content before 1 July 1994. The Government indicates in this respect that the detailed description of the "reinstated" rules will be given in its next report. The Committee also notes, from the twenty-eighth annual report on the application by Sweden of the European Code of Social Security, that a commission has been set up to investigate and analyse changes necessary to reform the unemployment legislation and is due to present its report by 30 September 1996. In its twenty-ninth report, the Government further indicated that a Bill presented to Parliament contains a number of measures aimed at reducing the number of unemployed persons by half by the year 2000, including, inter alia, general economic and fiscal policy measures, social policy measures, as well as a proposal for an extended schooling programme. The Government also contemplates reinstating by 1 January 1998 the 80 per cent rate of the unemployment insurance compensation (which was previously reduced to 75 per cent). In this situation, the Committee hopes that the next report of the Government will contain detailed information on the changes made or contemplated in the unemployment protection together with the text of the relevant laws or regulations.

3. Article 10, paragraph 3. The Committee notes, from the twenty-ninth annual report on the application by Sweden of the European Code of Social Security, that, as from 1 September 1995, changes were made in the Unemployment Insurance Act, as well as in the Cash Labour Market Assistance Act, in order to circumvent the right to benefits for persons working part time. Please explain in detail the nature of these changes and supply the text of the modified provisions of the legislation.

4. Article 25. (a) The Committee notes the information supplied by the Government on the situation of part-time workers under the statutory social security scheme.

(b) In its previous comments the Committee asked the Government to indicate the number of part-time workers who, by working less than 17 hours per week, were excluded, under section 47(3) of the Unemployment Insurance Act, from the unemployment insurance benefits. In reply, the Government provides statistics on the number of part-time workers working "short part time", that is 1-19 hours per week, who represent 19 per cent of all part-time workers, a percentage which appears to the Committee to be relatively high. The Committee would like the Government to specify whether the minimum number of working hours per week necessary for membership in the unemployment insurance funds has now been increased from 17 to 19 hours per week and, if so, to indicate the reasons for this decision. Please also continue to supply statistics on part-time workers who are excluded from the scope of the unemployment insurance.

5. Article 26. Further to its previous comments, the Committee notes, from the twenty-ninth annual report on the application by Sweden of the European Code of Social Security, that, as from 1 January 1996, it is no longer possible to qualify for unemployment benefits by undergoing prescribed unemployment measures and that the right to such benefit can only be established by previous employment in the open labour market. It would like the Government to explain the effect this decision might have on the situation of the new applicants for employment - in particular young persons - covered by this Article of the Convention.

6. Finally, as regards the application of Articles 3 and 7 of the Convention, the Committee would like the Government to refer to its pending comments concerning the Employment Policy Convention, 1964 (No. 122).

Observation (CEACR) - adopted 1996, published 85th ILC session (1997)

In its previous observation concerning the follow up of the recommendations made by the committee set up to examine the representation made under article 24 of the ILO Constitution by the Swedish Trade Union Confederation (LO), the Swedish Confederation of Professional Employees (TCO) and the International Confederation of Free Trade Unions (ICFTU), approved by the Governing Body at its 258th Session (November 1993), the Committee asked the Government to supply a detailed report in 1996, containing information on the measures taken to ensure that cash benefits for incapacity for work which are due to a victim of an employment injury are paid from the first day of incapacity, as well as on the definition of employment injury and the burden of proof.

The Committee notes that the report requested this year was not supplied by the Government, but that in November 1995 the Government provided additional information. It further notes that this information does not contain a reply to the questions raised by the tripartite committee of the Governing Body in paragraph 47(b) of its report concerning changes in the work injury concept and in the burden of proof in employment injury cases in relation with Article 8 of the Convention. The Committee therefore once again hopes that the next report of the Government will contain full information on these subjects.

As regards the question of the waiting period, the Government states that, contrary to its previous intentions, it found, when preparing the Bill concerning Final Adjustment of the National Budget for the 1995/96 Fiscal Year adopted on 18 April 1995, that the strained financial situation did not permit the abolition of the waiting period of one day for health insurance benefits, nor consequently as regards employment injury insurance benefits. Furthermore, with a view to reducing the cost of these insurance schemes while at the same time providing a justifiable safeguard against loss of earnings, the Government proposed that a uniform benefit rate of 75 per cent of qualifying income be introduced, with effect from 1 January 1996, in the health and parental insurance schemes, as well as in unemployment insurance and in the sick pay system. According to the Government, these proposals have in principle been approved by the Riksdag. It adds that the Health Insurance and Work Injuries Advisory Committee appointed in 1993 was given new terms of reference to draft a universal scheme of illness insurance to be organized by the State; the Drafting Committee is to propose rules of compensation for this universal illness insurance and the Sick Pay Act based on the principle that the compensation rate for short- or medium-term absence is to be 75 per cent of qualifying income and that there is to be one waiting day.

The Committee notes this information. It hopes that, in elaborating the new universal scheme of illness insurance, it will be possible for the Government to reconsider the situation so as to ensure, in accordance with Article 9, paragraph 3, of the Convention, that the cash benefits for incapacity for work which are due to a victim of an employment injury are paid from the first day of incapacity. The Government is asked to indicate the progress made in this respect in its next report.

Observation (CEACR) - adopted 1995, published 82nd ILC session (1995)

The Committee notes the information supplied by the Government in its report. It recalls that in accordance with paragraph 47 of the report of the Committee set up to examine the representation made under article 24 of the ILO Constitution by the Swedish Trade Union Confederation (LO), the Swedish Confederation of Professional Employees (TCO) and the International Confederation of Free Trade Unions (ICFTU), alleging non-observance by Sweden of Convention No. 121, which was approved by the Governing Body at its 258th Session in November 1993, the Government was asked to furnish a report on the application of the Convention containing information on the measures taken to ensure that the cash benefits for incapacity for work which are due to a victim of an employment injury are paid from the first day of incapacity, as well as on the definition of employment injury and the burden of proof.

As regards the question of the waiting period, the Government indicates in its report that, following the parliamentary election in September 1994, the new Government, in its first budget Bill introduced on 9 January 1995, announced a statutory amendment whereby sickness insurance benefits will be payable from the first day, with effect from 1 January 1997. Subject to the Government's proposals being passed by the Riksdag, the abolition of the one-day waiting period means that Sweden will again be discharging its obligations under the Convention. The Committee notes this information with interest. It asks the Government to supply the text of the relevant provisions as soon as they are adopted.

With respect to recent changes made in the work injury concept and in the burden of proof in work injury cases, the Government indicates that no test cases have yet been decided and, consequently, it is too early at present to pronounce on the implementation of the new rules; information of this kind will be supplied in due course. The Committee therefore hopes that the next report of the Government will contain full information on these subjects.

[The Government is asked to report in detail in 1996.]

Direct Request (CEACR) - adopted 1994, published 81st ILC session (1994)

1. The Committee notes the report of the Committee set up to examine the representation made by the Swedish Trade Union Confederation (LO), the Swedish Confederation of Professional Employees (TCO) and the International Confederation of Free Trade Unions (ICFTU) under article 24 of the ILO Constitution alleging non-observance by Sweden of Convention No. 121, which was approved by the Governing Body at its 258th (November 1993) Session. It notes in particular that, in accordance with paragraph 47 of the report, the Government is asked to furnish, not later than 15 October 1994, a report on the application of the Convention containing information on the measures taken to ensure that the cash benefits for incapacity for work which are due to a victim of an employment injury are paid from the first day of incapacity, as well as on the definition of employment injury and the burden of proof. The Committee therefore hopes that, in accordance with the assurances given by the Government in its latest report on the application of the Convention, a new detailed report will be supplied for examination at the Committee's next session and that it will contain all the information requested.

2. Furthermore, the Committee notes the new provisions related to the survivors' benefits due in the event of employment injury. It reserves the possibility of examining the impact of these new provisions on the application of the Convention until it has at its disposal a translation in English or French of the relevant legislation.

Direct Request (CEACR) - adopted 1994, published 81st ILC session (1994)

The Committee has examined the first report and the legislation provided by the Government, as well as the comments made in this respect by the Swedish Confederation of Professional Employees. It would be grateful if the Government's next report would contain additional information and explanations on the following points:

Article 3 of the Convention. The Committee notes the comments made by the Swedish Confederation of Professional Employees according to which the employers' and trade union representation in the governing bodies of the National Labour Market Board and of the county labour boards was abolished with effect from 1993. It would therefore be grateful if the Government would indicate in its next report how consultation and cooperation with the organizations of employers and workers are ensured in implementing the provisions of the Convention.

Article 7. In its comments, the Swedish Confederation of Professional Employees also states that stronger priority has been given to combat inflation. The Committee refers in this respect to its comments concerning the Employment Policy Convention, 1964 (No. 122).

Article 10, paragraph 2(b). Please indicate whether there are cases in which the employer would not have to pay wages to his or her laid-off workers under the Act on Security of Employment and the redundancy pay agreements concluded between the social partners; and, if so, please indicate whether and under what provisions such workers would be entitled to compensation under the Unemployment Insurance Act or the Act respecting cash labour market assistance.

Article 10, paragraph 3. The Government indicates that part-time employees are entitled to compensation if, before becoming unemployed, they were employed to a large enough extent for unemployment benefit to be payable. Please indicate what are the relevant provisions of the legislation.

Article 15, paragraph 1. The Committee notes that, according to section 19 of the Unemployment Insurance Act, the daily allowance shall not be fixed at a lower rate than one that meets the requirements of the Social Security (Minimum Standards) Convention, 1952 (No. 102). Since Sweden has also ratified Convention No. 168, the Committee would like the Government to consider the possibility of supplementing the above provision so that it would also attain the level of benefit fixed by this instrument.

Article 19, paragraph 6. The Committee notes that section 28 of the Unemployment Insurance Act empowers the unemployment fund and/or the Labour Market Board to restrict the entitlement to daily allowances of workers engaged in an occupation where unemployment regularly recurs each year. It further notes that in its report for the period 1988-1992 on Convention No. 102, the Government indicated that special seasonal restrictions are currently applied by five unemployment insurance funds covering commercial travellers, salaried industrial employees, forestry workers, small entrepreneurs and fishermen. The Committee would ask the Government to give detailed information on the nature and content of the restrictions in question.

Article 24, paragraph 1(a). The Government states in its report that the unemployment insurance benefit and the cash labour market assistance carry pension rights under the ATP supplementary pensions scheme. Please indicate the relevant provisions of the legislation.

Article 24, paragraph 1(b). Please indicate how this provision of the Convention is applied in respect of maternity benefit.

Article 25. (a) Under the Unemployment Insurance Act, section 47(3), a person may become a member of an unemployment fund only if he is employed for an average of more than 17 hours a week. Please indicate the number of part-time workers who, by working less than 17 hours per week, are excluded from the unemployment insurance benefits, as well as their proportion to the total number of part-time workers.

(b) The Committee would like to point out that the adoption of the adjustment measures contemplated by this Article of the Convention is not restricted solely to the unemployment protection branch, but concerns all branches of statutory social security schemes which are based on occupational activity. It would therefore ask the Government to indicate in its next report how these schemes are adjusted to the occupational circumstances of part-time workers, for example, as suggested in paragraph 22 of the Employment Promotion and Protection against Unemployment Recommendation, 1988 (No. 176).

Article 26, paragraph 1 (in relation to Article 6 of the Convention). The Committee notes the information supplied in the report under this Article and Article 8 of the Convention, particularly as regards the measures taken in favour of young persons seeking employment. It notes in this respect that section 9 of the Act respecting cash labour market assistance provides this assistance to any person - even if he has not completed the period of qualifying employment - who, for at least 90 calendar days during a base period of ten months following the completion of full-time education comprising of at least one year of study and qualifying for a study allowance, has been available on the employment market as a jobseeker through the public placement service or has had remunerated employment. However, according to section 4(1) of the said Act, this assistance is payable only to a person who has reached the age of 20 years. The report indicates that before that age, young persons aged between 16 and 17 can be offered youth training by schools, while 18 and 19 year olds are covered by "special introductory training opportunities" with public sector employers after leaving compulsory school. However, as from 1 July 1992 the special introductory training opportunities were superseded by the new Youth Training Scheme. The Committee would like the Government to continue to provide information on the measures taken in favour of this category of new applicants for employment, including information and statistics on the practical implementation and coverage of the new Youth Training Scheme, as compared to the total number of young persons under 20 years of age seeking work.

Finally, the Committee noted, from the twenty-sixth annual report of the Government on the application of the European Code of Social Security and its Protocol, that the Commission on a New Scheme of Unemployment Insurance has presented its report (SOU 1993:52) with recommendations to be implemented in the spring of 1994. The Committee would be grateful if the next report of the Government would contain information on any further developments in this respect.

Direct Request (CEACR) - adopted 1993, published 80th ILC session (1993)

1. Part IV (Survivors' benefit). The Committee notes the new system of survivors' pensions, which came into force on 1 January 1990, following the adoption of the Act of 30 June 1988 to amend the National Insurance Act. The Committee also notes the Government's statement that the new system of survivors' pensions is intended principally to take into account the new situation with regard to women on the labour market, and the changes in family structures and social conditions generally. Furthermore, the Committee notes that the new system is covered by transitional provisions which may be applied over a long period. While fully aware of the reasons which have led the Government to reform its survivors' benefit system and the fact that the new legislation applies to surviving spouses, a term which includes men and women who were permanently living together at the time of death, the Committee wishes to draw its attention to the following point.

Article 41 of the Convention (in the light of Article 21, paragraph 3(b), and Article 1(h)). By virtue of section 4, Chapter 8, of the above Act of 30 June 1988, a surviving spouse who has not reached the age of 65 years upon the death of the spouse is entitled to an adjustment pension for a period of one year if the spouse has a dependent child under 12 years of age or if they have lived uninterruptedly with the deceased spouse for a period of at least five years. In accordance with section 5 of Chapter 8, entitlement to an adjustment pension is maintained for as long as the surviving spouse lives with a dependent child under 12 years of age. Furthermore, a surviving spouse who fulfils the conditions for entitlement to an adjustment pension under section 4, Chapter 8, is entitled to a special survivors' pension if its capacity to obtain an income from work is reduced by at least half following the death of the spouse and the reduction is due to conditions on the labour market, to the surviving spouse's state of health or to any other comparable circumstances which are presumed not to be of short-term duration (Chapter 8, section 6). Similar provisions apply to supplementary pensions under Chapter 14 of the Act of 30 June 1988.

The Committee recalls that, in accordance with Article 21, paragraphs 2 and 3, of the Convention, the right of a widow to a survivors' pension must be recognized in the following three cases: (1) when the widow has reached a prescribed age, which may not be higher than the age prescribed for old-age benefit; (2) when the widow is an invalid; and (3) when the widow is caring for a dependent child of the deceased. The new Swedish legislation appears to ensure the application of this provision of the Convention with regard to the first two categories of widows. Such does not appear to be the case for a widow who is caring for dependent children, since, in accordance with Article 1(h) of the Convention, the term "child" covers: "(i) a child under school-leaving age or under 15 years of age, whichever is the higher; and (ii) a child under a prescribed age other than specified in clause (i) of this subparagraph and who is an apprentice or student or has a chronic illness or infirmity disabling him from any gainful activity, under prescribed conditions: provided that this requirement shall be deemed to be met where national legislation defines the term so as to cover any child under an age appreciably higher than that specified in clause (i) of this subparagraph".

The Committee hopes that the Government will be able to re-examine the matter in the light of the above. In the event that the Government continues to prevail itself of Article 41 of the Convention, to which it referred in its first report, the Committee requests the Government to supply the information required by the report form under this Article of the Convention, and in particular under points 2 and 3.

2. Part VI (Common provisions), Article 32, paragraph 1(a). The Committee would be grateful if the Government would indicate whether, and under which provisions, supplementary pensions continue to be provided in the event of the residence of the beneficiary abroad.

3. Furthermore, the Committee would be grateful if the Government would supply the text in Swedish and, if possible, in English of the most recent codified version of the National Insurance Act.

Direct Request (CEACR) - adopted 1993, published 80th ILC session (1993)

The Committee notes the communications, dated 12 October 1992 and 25 February 1993, received from the Swedish Confederation of Professional Employees relating to the application by Sweden, among others, of Convention No. 130. It also notes that these communications were duly transmitted by the Office to the Government for comments. The Committee therefore hopes that the Government will provide any comments and relevant information on the matters raised by the Swedish Confederation of Professional Employees for examination at its next session.

[The Government is asked to report in detail for the period ending 30 June 1993.]