Insurances required when working and living in Sweden
When living and working in Sweden, it's important to understand the insurances that are both mandatory and recommended to ensure security for both employees and employers.
An Overview
The Swedish insurance system is well developed and includes several types of insurances that protect individuals in different situations, such as illness, accidents and unemployment. In this article, we cover the insurances required to live and work in Sweden, as well as some that may be good to consider.
1. Employer's Responsibilities and Insurances
When you are employed in Sweden, your employer has a responsibility to ensure that you are covered by certain insurances. Employers must subscribe to certain insurances that apply to all employees. These insurances include:
a) Occupational Injury Insurance
This insurance applies if you were to get injured or fall ill at work. The occupational injury insurance covers work-related accidents and illnesses, and the employer pays this insurance through the employer's fee. It provides compensation for lost work income and can also provide compensation for medical costs if the accident occurs at the workplace.
b) Health Insurance (Försäkringskassan)
Everyone who lives and works in Sweden is covered by the public health insurance administered by Försäkringskassan. This insurance covers sick leave and provides compensation if you cannot work due to illness. To receive sickness benefit, you need to have been employed for at least 14 days and meet certain work conditions.
c) Parental Insurance
Parental insurance is another important insurance in Sweden and applies to both mothers and fathers who have children. Parental leave and parental allowance are part of the Swedish social insurance system. Employers have an obligation to follow these rules, and Försäkringskassan provides financial compensation during the leave.
d) Group Life Insurance
This insurance is not mandatory but is often offered by employers through collective agreements. It provides financial security to the survivors if an employee were to die during employment. It can be an extra protection for both employees and their families.
2. Insurances for Self-Employed and Freelancers
For self-employed and freelancers, different rules apply, as they do not have the same insurance coverage as employees. However, there are several insurances that may be important to have to ensure security in their business:
a) Own health insurance
As a self-employed person, you must take responsibility for arranging your own health insurance. The Swedish health insurance is based on employees' work income, but as a self-employed person, you must ensure that you contribute to the Swedish Social Insurance Agency (Försäkringskassan) and thereby qualify for sickness benefit in case of illness. You may also choose to take out private health insurance to gain quicker access to healthcare and compensation in case of illness.
b) Work injury insurance
Even self-employed individuals need work injury insurance to be protected in case of accidents occurring at work. The insurance covers injuries or illnesses caused at the workplace and can provide compensation for lost income and rehabilitation. It is also important to ensure that all potential risks are covered if working with heavy or dangerous machinery or materials.
c) Business insurance
As a self-employed individual, you will likely need business insurance to protect your company and its assets. Business insurances can cover damage to business premises, equipment, or goods. For instance, if you own a shop, an office, or store goods, you may need insurance that covers loss or damage to these assets.
d) Pension insurance
Self-employed individuals also need to think about their own pension. In Sweden, there is a public pension based on the income you earn, but to improve your future pension, it may be wise to take out private pension insurance. Many freelancers choose to set up private savings or a private pension insurance to compensate for the extra taxes and fees they pay as self-employed individuals.
3. Insurances for Employees and Companies
In Sweden, many employers offer extra insurances as part of the employment terms. This can include:
a) Occupational pension
The occupational pension is a pension insurance that the employer pays for their employees in addition to the public pension. The occupational pension is an important part of Swedish welfare and provides financial support when you retire.
b) Travel insurance
Travel insurance can be offered by employers, especially if employees frequently travel for work. The travel insurance covers, among other things, medical costs during foreign trips, baggage loss, or trip cancellations.
c) Company insurances for employees
Companies can also offer their employees various types of company insurances such as legal protection, all-risk insurance for work equipment, or liability insurance that protects employees in cases of accidents or damages at the workplace.
Conclusion
When working and living in Sweden, it is important to be aware of the insurance required to protect oneself and one's loved ones. For employees, this means a comprehensive system of insurance covering work injuries, illness, and parental leave, while self-employed individuals need to arrange their own insurance for illness, accidents, and pensions. The Swedish social insurance system provides basic protection for all residents, but additional private insurance can offer an important extra layer of protection for both employees and entrepreneurs. By ensuring that you have the right insurance, you can create a safer existence for both yourself and your family in Sweden.