Sweden Finland Austria

2.3.
Summary tables of APW-calculations for 1997
The results reported in section 2.2 are summarized in tables 2.17 and 2.18.
2.4.
Developments
Introduction
A series of changes in the social security and taxation schemes will be mentioned country
by country in the following section, ’Announced changes 1997/98’. Then follows short
comments on the ’APW-calculations’ for 1997 compared to those for 1996, including an
attempt to explain at least the major changes.
Announced changes 1997/98
DENMARK
Taxation
The gradual implementation of the tax reform from 1994 continued. The marginal tax rates
are lowered and the general social contribution is increased, it was 7 per cent of wage
income (employees and self-employed) in 1996, increasing to 8 per cent in 1997 and 1998.
The reform was fully implemented in 1998. The social contribution for supplementary
pensions was increased in 1997 and 1998 for recipients of U.B. and sickness benefits.
Social assistance recipients started to pay this contribution in 1997, although at a reduced
rate. In 1998 a temporary savings contribution was introduced (1 per cent of wage income
and a fixed amount for benefit recipients). This became permanent in 1999. The tax value
of negative capital income was reduced and the deduction for the 
middle' state tax was
increased.
Unemployment benefits
There were a few changes to the basic reform from 1994. The duration of the benefit
period was shortened from 7 to 5 years in 1996, a change which will be gradually imple-
mented until 1998. Active labour market measures will no longer prolong the benefit
period. From 1999 the benefit period will maximum be 4 years, participation in active
labour market measure will start after 1 year.
From 1999 all young unemployed below 25 years will have to participate in active labour
market measures after 6 months of unemployment.
From 1997 the working condition was 52 weeks within the last 3 years, up from 26 weeks,
before benefits could be received (requirement for full time insured). Two rules for elderly
unemployed should be mentioned, even if they are from the start of the reform. One is that
unemployed who are over 50 years when their U.B. rights expire can continue receiving
benefits until the age of 60 years if they by continued membership of the U.B. scheme at
that time will qualify for the early retirement scheme (Efterløn). 

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