Swedish Cities Face Millions in Costs if Sick Pay Reform Goes Through

Stockholm, Gothenburg, and Malmö are bracing for a financial hit. If the incoming government follows through on a campaign promise to abolish the waiting period for sick pay, the three largest cities would have faced combined salary costs of nearly half a billion kronor last year. The numbers are concrete: Stockholm would have paid 205 million kronor more, Gothenburg 164 million, and Malmö 107 million. These figures represent the extra wage expenses the municipalities would have incurred if the so-called “karensavdrag” – the deduction taken from a worker’s first day of sick leave – had already been removed. City leaders are now looking to the center-left Social Democratic government for relief. They expect compensation to cover these added costs if the election pledge becomes law. The municipalities argue they cannot absorb such a significant increase without support from the state.