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Sickness benefits
As already mentioned, the Swedish sickness benefit scheme has been changed several
times in recent years.
Before March 1st 1991 the sickness insurance covered 90 per cent of the former income
(up to the usual ceiling in the Swedish system) and it was usual, that the employer covered
the remaining 10 per cent.
From March 1st 1991 the coverage was changed to 65 per cent for the first 3 days, and 80
per cent of the lost income for the remaining days during the first 2 weeks of sickness. The
employer usually ’topped up’ with 10 per cent of the lost income. From the beginning of
the 3rd week until day 90 the coverage was 80 per cent and the employer supplemented
with another 10 per cent. After day 90 the coverage was 90 per cent from the insurance
scheme, and there was no supplement from the employer.
In 1992 the employer became responsible for paying ’sick pay’ during the first two weeks
of illness. The coverage was 75 per cent in the first 3 days and 90 per cent in the remaining
part of the first two weeks of illness. From the beginning of the 3rd week the insurance
paid 90 per cent of the former income (no supplement from the employer). Compared to
the March 1
December 31 period in 1991 there were no changes for the recipient but the
financing was changed. The increased burden for the employer was compensated through
a decrease in the employer paid social contributions.
From April 1st 1993 a waiting day (first day of sickness) was introduced and the coverage
changed to 80 per cent from the start of the 3rd week until the end of the 52nd week, and
thereafter 70 per cent. Both percentages could be augmented by 10 percentage points paid
by the employer.
The only change in 1994 was a limitation in the possibility of the employer to augment the
coverage. The restricted period was from the beginning of the 3rd week until the 90th day
of sickness, and the supplement was 10 per cent of the lost income.
1995 saw no changes, but in 1996 a general coverage of 75 per cent was introduced. The
employer paid period was enhanced from 2 to 4 weeks in 1997, it was changed back to 2
weeks in 1998. The coverage was 75 per cent in 1997, this will be changed to 80 per cent
in 1998.

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The many changes have had an impact on the compensation both for short and long spells
of sickness. Table 3.4 shows the effect of 1 week of sickness on the annual disposable
income of the APW.
Table 3.4.
Impact on annual disposable income from 1 week of sickness. APW income level.
1991
1992
1993
1994
1995
1996
1997
1)
Reduction in
disp. income %
0.5
0.3
0.5
0.6
0.6
0.7
0.8
1) Preliminary calculations (’Elements’).
The impact is calculated for the insurance coverage only. If the supplement from the
employer is included, the impact in 1991 is identical to that in 1992. The change from
1992 to 1993 is due to the waiting day. From 1995 to 1996 the coverage was reduced from
90 to 75 per cent for the last 2 days of the week with illness, and this is just visible in the
reduction percentage for the two years. The 
increased' negative impact from 1996 to 1997
is mainly due to rounding.