Swedish parents are among the EU’s most successful in balancing work and family responsibilities. Female and maternal employment rates are among the highest in the EU, and child poverty is the lowest. The country’s family policy is aimed at supporting the dual-earner family model and ensuring the same rights and obligations regarding family and work for both women and men. Generous spending on family benefits, flexible leave and working hours for parents with young children and affordable, high-quality childcare are the main factors for success. The aim of the Swedish financial family policy is to contribute to improved conditions for good living standards for all families with children, increased freedom of choice and empowerment of parents.
At 71.8% in 2011, the employment rate of women was close to that of men (76.3%) and well above the Lisbon target for female employment (60%). Measured at 73.7% in 2011, the employment rate of mothers of children under six is the fourth highest in the EU. At the same time, at 1.9 children per woman in 2011, the fertility rate is relatively high compared with other EU countries.
A high proportion of women use flexible working arrangements. Female and male part-time employment rates stand at 39.6% and 13.7% respectively, compared to the EU averages of 32.1% for women and 9% for men. Women work on average five hours per week less than men, a smaller difference than elsewhere in the EU. At 15.8%, The gender pay gap in Sweden is lower than the EU average of 16.4%.
Sweden has a highly developed and flexible parental leave scheme that allows and encourages both parents to spend time with their children. The mother and the father are together entitled to up to 16 months paid leave per child. Of this, 13 months are paidat 80% of the most recent income up to a ceiling of approximately 440,000 SEK (€51,100) per year in 2011and the remaining three months are paid at a flat rate of 180 SEK (€21) per day.
Each parent has a personal, non-transferable entitlement to two months of paid parental leave (of the total 16 months). The remaining 12 months can be freely shared between parents. The right to be absent from work full time is restricted to the child’s first 18 months. Thereafter parents who want to reduce working hours or be on full leave must use parental benefit days to ensure such a right to parental leave. Parents have the right to decrease their working time by up to 25% without using parental benefit days, until the child is eight years old or finishes the first year of school.
Despite the positive consequences of fathers’ involvement in childcare, the flexibility of the system in terms of who takes the leave, nevertheless results in the lion’s share of parental leave days being taken by mothers. Fathers in Sweden take about 24% of the total amount of parental leave days, which is still considerably more than most EU Member States. As an economic incentive for mothers and fathers to share childcare more equally and to improve mothers’ participation in working life, in July 2008 the Swedish government introduced a ’Gender equality bonus’ . Initially the bonus was implemented as a tax reduction. From 1 January 2012 it is instead linked to the take-up of parental leave benefit and it amounts to a maximum of13,500 SEK (€1,570) per child.
The Swedish government has also introduced a new rule into its social insurance scheme to help single parents who fall ill and cannot look after their child. The rule, which has been in force since 1 January 2010, allows another insured person (i.e. a person legally living and/or working in Sweden) who forgoes paid work to receive temporary parental benefit to look after the child.
With the aim of increasing parents’ freedom of choice, from 1 January 2012 it is possible for both parents to use parental benefit at the same time. 30 days (of the total 480 days) can now be used together during the first year after the child’s birth, giving parents the option of taking time off work together.
At around 3.2% of GDP, financial benefits for children and families represent one of the highest shares in the EU (the EU average is 2.3% of GDP). Along with the high level of labour force participation, this is also seen as a major reason for low poverty among children. Sweden has one of the EU’s lowest child poverty rates (14.5% in 2011) and was among the top-rated nations for child well-being in the 2007 UNICEF report.
In addition to parental benefits, a range of financial measureshave been introducedto reduce the financial burdens on parents raising children. They include:
Pregnancy benefit payable for a maximum of 50 days at 80% of the mother’s most recent income to expectant mothers who are unable to work because of the physically demanding nature of their jobs;
Temporary parental benefit paid at 80% of annual earnings for a sick child under the age of 12;
Child allowance amounting to SEK 1,050 (about €122) per month and per child with supplements for large families ranging from SEK 150 (about €17) for the second child to SEK 1250 (about €145) for the fifth and each additional child.
In order to increase family income the housing allowance for families with children was raised from 1 January 2012. Housing allowance is a benefit for low-income families, which varies in level depending on household income. The amount received depends on income, housing costs, the size of the home and the number of children within the household. The part of the allowance which is dependent on the number of children has been raised for households with one child from SEK 350/month to SEK 1,300 (about €40 to €151), for households with two children from SEK 425/month to SEK 1,750 (about €49 to €203), and for households with three or more children, a rise from SEK 600/month to SEK 2, 350) (about €70 to €273). Furthermore, the threshold from which housing allowance is payable has been lowered as from 1 January 2012. This means too that the amount of housing allowance payable by the state has increased.
Public childcare is guaranteed to all parents and it operates on a whole-day basis: most childcare facilities are open from 6.30 a.m. until 18.30 p.m. Pre-school is free for children aged between three and six for up to 15 hours per week. Parental fees are directly proportional to parents’ income and inversely proportional to the number of children in a family. The fee can be up to 3% of the family’s monthly income, but no more than 1,260 SEK(about €146) per month. The parental fees cover, on average, only 11% of the real cost of a place in pre-school which means that the cost for childcare is heavily subsidised.
As a result, 51% of children under three and 94% of children between three and six are enrolled in formal childcare. These figures are well above the EU Barcelona targets for childcare provision and the EU averages of 27% and 84% respectively.
In 2008, the Swedish government introduced a child-raising allowance’ to allow for a smoother transition between parental leave and work. Applications for child-raising allowance can be made for children over the age of one but younger than three. The allowance is administered by local authorities and can be combined with paid employment but not with other social security benefits relating to unemployment, sickness, parenthood or pension. Amounting to 3,000 SEK(about €348) per month, it is paid to parents in connection with the parental leave period if the child is not enrolled in public childcare.
In addition, the family policy reforms of 2008 aimed to enhance the educational quality of childcare and introduced a childcare voucher system to give more freedom of choice to parents regarding different types of childcare.
In 2009 a national strategy for developing parental support was adopted. The overall objective of the strategy is that all parents should bebe offered parental support throughout the period the child is growing up and is aged 0–17. The parental support strategy aims to promote children's health and positive development through the parents and to maximise their protection from illness and social problems. The strategy emphasises that it is important that the values of the programmes are based on the UN convention on the rights of the child, and are based on gender equalityprimciples. To achieve the overall objective of the strategy, the government has mandated the Swedish National Institute of Public Health (FHI) to allocate a total of SEK 130 million (about €15 million) in stimulus funds to local authorities and research institutes in order to stimulate local and regional parental support efforts and gain new expertise in this field. 19 local authorities have received stimulus funds and 50 others have indirectly benefited through collaboration with a local authority. In April 2012, the government allocated FHI an additional SEK 2 million (about €232,000) to disseminate knowledge obtained during the period of parental support projects in the country, and it will also, among other things, be arranging regional conferences.
The information in the country profile was last updated in September2012.
In 2009, the government set up the Committee on FinancialCooperation between Separated Parents. The aim is to determine what initiatives and changes in existing financial schemes are needed to improve cooperation between separated parents.
The occurrence of children alternating between both parents’ homes after a separation is increasing in Sweden, reaching numbers higher than 50% for children with recently divorced parents and for all children with separated parents a total of 32%. The committee highlights this in the report, concluding that these changing patterns create a need for changes regarding the entitlements of family allowances.
The committee proposed several amendments to existing benefits and schemes to improve cooperation. This includes changes in entitlement to child allowance, parental benefit, maintenance allowance, housing allowance and care allowance for sick and disabled children. The effect on work-life balance for lone parents was also considered. In June 2011 the committee submitted its report to the Minister for Health and Social Affairs. The report has now been referred for consideration to relevant authorities, advocacy groups and the public.