Sweden Finland Austria

Documentation of APW calculations for Sweden 1994,
’correct’ data
Single APW:
The gross wage of the APW in 1994 is from ’The Tax/Benefit Position of
Production Workers’, OECD, 1995 edition.
1994
Non-insured
1)
Gross wage
183,100 SEK
Tax and social security
56,198 SEK
Disposable income
126,902 SEK
APW-couple: The husband has the same wage as the single APW, the wife has 50 per
cent of that. The couple has no children.
1994
Non-insured
1)
Gross wage
274,650 SEK
Tax and social security
81,199 SEK
Disposable income
193,451 SEK
1)
From July 1994 the Swedish unemployment insurance scheme became mandatory. The first step was
taken in January 1994 when a special social contribution of 1 per cent of the income of the employees
was implemented. This social contribution replaced most of the former ’membership fee’ to the
voluntary insurance scheme. The major part of the unemployment insurance is still financed by social
contributions paid by the employer and by ’deficit’ financing. Social contributions paid by the employer
(approx. 31 per cent of the wage bill) is the major financing source for Swedish social security, but
social contributions from the employees are increasing, a contribution of 0.95 per cent of the income
was introduced in 1993 for health insurance, the mentioned 1 per cent contribution in 1994 and when
the new pension reform is introduced from 1995 the contributions from employees will be further
increased, and the employer paid contributions lowered.
’Standard’ income events
1.
Ill for one week. Single APW
The gross wage is reduced by 1/52, i.e. 3,521 SEK. Compensation for illness in one
week is nothing for the first day (waiting period), 75 per cent of the gross income (on
a daily basis that is 183,100 x .75 = 137,325 / 260 = 528.17 SEK, rounded 528 SEK)

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200
for the next 2 days and 90 per cent for the remaining 2 (on a daily basis that is
183,100 x .90 = 164,790 / 260 = 633.81 SEK, rounded 634 SEK). The compensation
is (2 x 528) + (2 x 634) = 2,324 SEK.
The gross compensation percentage is 2,324 / 3,521 x 100 = 66. When the APW is
ill for one week his or her disposable income is 126,108 SEK. 
The decrease in disposable income compared to the situation without illness is
126,902 - 126,108 = 794 SEK or 0.6 per cent.