Swedish government proposes law to curb parental leave fraud, employers to report absences monthly

The Swedish government has proposed a new law aimed at reducing fraud in the payment of parental leave and temporary parental benefits. Under the proposed law, employers will be required to report to the Swedish Social Insurance Agency (Försäkringskassan) every month when their employees take parental leave or stay at home to care for a sick child. The annual cost of such fraud is estimated to be around 2 billion SEK.

Currently, the Social Insurance Agency has to request information from individuals, a process that is time-consuming. The new law will mandate employers to report both absences and valid absences in their monthly employer declarations, automating the process and making it easier for the agency.

The proposal is part of the government’s efforts to combat benefit fraud, with parental leave fraud being a key issue. The law is important for maintaining trust in the system and ensuring that the generous welfare systems in Sweden are not abused, according to the government.

The law, if approved, will initially result in increased administrative workload for employers. However, once the system is up and running, it is not expected to be burdensome. While the law is intended to apply to all employers, there may be some exceptions. The government hopes to have the law passed in the parliament by fall and in place by January 1, 2025.