Sweden proposes new sick pay and parental benefit rules for self-employed workers

Self-employed people in Sweden could get a more predictable basis for sickness and parental benefits under a government draft sent for consultation on Tuesday.

The proposal would calculate sickness-benefit qualifying income, known as SGI, from the higher of the latest final-tax surplus from active business activity or the average surplus from the two earlier tax years. SGI determines payments including sickness benefit, parental benefit and care-of-sick-child benefit.

For people combining employment with a business, employment income would be calculated from at least the latest 12 months. A separate change would give some people returning after qualifying work abroad 25 days to protect their SGI.

Nothing has changed yet. Consultation responses are due by 2 November 2026. The new self-employed formula is proposed to start on 1 January 2028, while the 25-day rule is proposed for 1 February 2027. Parliament would need to amend the Social Insurance Code after the Government decides whether to proceed.

Current rules base a sole trader's SGI on business results before tax and after deductions. People working through their own limited company are normally treated as employees, with SGI based on salary, so the draft would not apply to every person who calls themselves self-employed.

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