7
caseworker). Although the final decision is made by the decision maker, the caseworker
plays a key role in the process since (s)he prepares the portfolio, which includes the
assessment of the outcome and because (s)he may even initiate the application to start
with.
Full income-related DB amount to 64 percent of an average of the three highest
previous gross yearly incomes during a fixed reference period that varies with age. For
those with low previous income a fixed guarantee level applies. The benefit level then
basically depends on how long the individual has lived in, and is expected to live in,
Sweden. Full compensation at the guarantee level in 2007 corresponds to SEK 98,400
(
€9 840).
7
2.3
Unemployment Insurance
Unemployment benefits can be paid in two different ways, a fixed basic compensation or
as an income-related amount based on previous earnings. To receive any compensation,
the unemployed must be at least 20 years of age and fulfill: i)
the basic condition
, and ii)
the work condition
. The basic conditions are a set of rules for the unemployed. For
instance, they state that he or she should be partially or completely unemployed and
prepared to accept suitable job offers. The work condition specifies that the unemployed
must have been employed approximately 6 out of the last 12 months preceding
unemployment. If these requirements are met, the unemployed is qualified for the fixed
basic compensation. To be eligible for the higher income-related compensation one also
needs to have been a member of an unemployment insurance fund for at least 12 months
from the first day of unemployment.
After an initial 7-day waiting period, the duration of a benefited unemployment spell
is limited to 300 days (individuals with children under 18 years of age are entitled to an
additional 150 days). After that, the unemployed is offered an activity program (
Jobb- och
utvecklingsgarantin
). The individual is entitled to another 300-day benefit period through
fulfilling the work condition again. The replacement rate for the first 200 days is 80
percent of previous earnings up to a cap of a maximum of 680 SEK (
€68) per day.
8
Between day 201 and 300 (450), the compensation is 70 percent, and in the activity
program the compensation is 65 percent of previous earnings.
2.4
Summary
The replacement rates are the least generous in the unemployment insurance and the
replacement rates in the disability insurance are lower than replacement rates in Sickness
insurance. Since the replacement rate in Sickness insurance is higher than in disability
insurance most disabled individuals prefer to be on sickness benefits (SB) rather than DB.
7
The specified exchange rate refers to 2007, today (May 11 2012) the rate is SEK 98,400
€8 856.
8
The cap is set relatively low; it is effective for approximately 50 percent of the unemployed and for
75 percent of the labor force.
