Sweden debates abolition of sick leave deduction

Debate is intensifying in Sweden regarding the potential abolition of the 'karensavdrag' (sick leave deduction), a policy where employees face a wage deduction for the first day of illness.

Proponents of abolishing the deduction, including the Social Democrats and the union Kommunal, argue that the current system forces workers—particularly those in essential roles like healthcare and childcare who cannot work from home—to choose between their health and financial stability. They contend that staying home when sick prevents the spread of infection and that the deduction unfairly penalizes responsible employees.

Conversely, business representatives and some editorial voices argue that removing the deduction would lead to increased short-term sick leave and higher costs for employers. Critics of the abolition point to historical data from the late 1980s when the removal of sick days led to high absenteeism, and cite Norway's model, where the absence of such a deduction has resulted in high sick leave rates. Research from SCB suggests that compensation levels and incentives significantly influence absenteeism, noting that short-term absence increases during major sporting events like the World Cup.