New labour law rules 2026 – what you need to know

The year 2026 brings a number of changes in the area of labour law. From stricter rules for labour immigration and new requirements for pay transparency, to changes in unemployment insurance and employer’s contributions. Here is a compilation of the most important news that employers and employees need to be aware of.

Changes from 1 January 2026

• New rules for suspension of government employees – Employers within the public sector can now immediately suspend a government employee – but with pay – when there are deemed to be objective reasons for dismissal or grounds for dismissal, especially when the business needs to be protected during e.g. an investigation process.
• Increased opportunities for care of sick children for parents of children with special care needs – Parents of children with disabilities or chronic illnesses can now receive compensation in a wider range of situations, for example when attending school or preschool to instruct staff in the child’s self-care, meetings about special support and when contacting social services.
• Changed unemployment insurance – The new rules that were introduced in October 2025 will continue to affect in 2026. The compensation is based to a greater extent on earned income rather than just hours worked.
• Increased general payroll tax – The general payroll tax, which is part of the employer’s contributions, will be increased from 11.62 percent to 12.62 percent, which affects personnel costs for employers.

Changes in spring 2026

• Temporarily reduced employer’s contributions for young people (from 1 April 2026) – Employer’s contributions for employees between the ages of 19 and 23 will be temporarily reduced and will apply until 30 September 2027.

Work environment

• New rules on asbestos (from 19 December 2025) – Lowered limit value and stricter requirements for training, permits and medical check-ups for occupational groups at risk of exposure.
• The Swedish Agency for Work Environment Knowledge (Mynak) is subsumed into the Swedish Work Environment Authority – From the turn of the year, Mynak is part of the Swedish Work Environment Authority.
• New work environment strategy expected to be presented – The Government’s new work environment strategy for 2026–2030 is being prepared and will be presented during the year.

Update on the implementation of the Pay Transparency Directive

The Government has provided an update on the implementation of the Pay Transparency Directive. According to the Council on Legislation’s referral that came earlier, the directive was proposed to be implemented in Swedish law from 1 July 2026. However, in March 2026, the Government announced that the implementation date of the Directive would be postponed and that a renegotiation of the Directive would be initiated in the direction of simplifying of the rules. The Government also announced that it does not currently intend to submit a bill on the Pay Transparency Directive to the Swedish Riksdag. To be continued.

Summary

Overall, 2026 will be characterised by both national reforms and adaptations to EU law. Employers should pay particular attention to the changes in employer’s contributions. For employees, the changes entail, among other things, new rules for the unemployment insurance fund and expanded opportunities for care of sick children for parents of children with special needs. Staying up-to-date on these changes is critical to ensuring regulatory compliance and planning operations effectively. Employers should also keep up to date on developments regarding the implementation of the Pay Transparency Directive in Swedish law.