Sweden: New rules have entered into effect regarding an employee’s entitlement to sick pay paid by the employer

As of 1 January 2019, the first day of sickness is no longer a qualifying or waiting day (Sw. karensdag) where an employee, who is absent due to sickness, receives neither salary nor sick pay. Employees are now entitled to sick pay as of day one. However, the employee’s entitlement to sick pay is subject to a deduction corresponding to 20 per cent of the employee’s total entitlement of one week of sick pay (Sw. karensavdrag). The employee’s total entitlement of one week of sick pay is calculated as 80 per cent of the employee’s average weekly salary for the relevant week. As such, employers are obliged to pay sick pay as soon as the employee’s absence due to sickness exceeds the equivalent of one fifth of the total entitlement of one week of sick pay. The change will not result in any change in practice for employees who work regular working hours five days per week. However, employees working irregular hours will no longer be adversely affected by the deduction of sick pay.