The proposal means that the subsistence limit is raised from approximately SEK 13,000 to SEK 26,560 for those who are labor immigrants to Sweden.

It is a bit short of the agreed increase, which according to the Tidö agreement would be in line with the median wage, but is still large enough to have negative consequences for the Swedish labor market, says Karin Johansson, CEO of Swedish Enterprise.

– We are of course not positive about this, she says.

– So it is no longer the social partners who set the wage, but the government.

“Will set a new kind of minimum wage”

Swedish Business and Industry represents 60,000 companies and 48 industries and employer organisations. According to Karin Johansson, an increase to the proposed level risks leading to a skills shortage in Sweden.

– It is de facto a departure from the model that exists on the labor market today. But above all, it is about the companies’ ability to recruit competence. We don’t turn a blind eye to workplace crime, but there are other tools to work with, she says.

Johansson believes that there is also a risk that employers will not be able to bear increased costs.

– Imagine a workplace where you must have access to personnel who come via this regulatory framework. But those who are Swedish employees receive a lower salary than those who have labor immigrants. It is clear that it will set a new kind of minimum wage for that type of workplace.

Muf: “Stupidest proposal”

The chairman of the Moderate Youth Association, Douglas Thor, is harsh in his criticism of the M-led government’s proposal, which has divided the Moderates since it was presented at the party meeting.

– We think the government has done very well, but this is probably the stupidest proposal they have presented so far. If you think that the jobs you are going to remove leave unemployed people in Sweden, then you think wrong, he says.

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