Like every new year, 2018 brings with it some legislative changes and, as usual, we will give you a summary of the ones we deem most relevant.

•    In an attempt to further encourage the employment of disadvantaged groups on the Swedish labor market, and to simplify the application process, the Swedish government has decided that five preexisting wage subsidy programs shall be phased out and replaced by one unified subvention called introduktionsjobb ("introduction jobs"). It has for many years been possible for Sweden registered employers to receive salary subventions of various sorts for up to two years when hiring a member of certain disadvantaged groups on the Swedish labor market, including the long-term unemployed, non-labor related immigrants, disabled individuals and newly released convicts. The new rules will, however, equalize the maximum compensation at 80% of the employee’s salary up to the new and higher income ceiling of SEK 20,000 per month. Higher remunerations will, of course, be allowed, but salary increases above that sum will not result in a higher subsidy. The reform will take place gradually during the spring of 2018, though already the income ceiling has been raised with regards to preexisting subsidy programs. A few employment subsidies, such as those for unionized workplaces hiring young people without experience, will remain separate. All employment subsidies must typically be applied for before the start of the employment.

•    As a part of the continued effort to lower the loan-to-value ratio among the Swedish population as a whole, and gradually lower the inflated prices on the Swedish real-estate market, the Swedish parliament has once again tightened the rules on mandatory amortization of housing mortgages. According to the new legislation, any individual who takes out a new housing mortgage of more than 4.5 times their annual income after January 1st, 2018 will have to amortize one additional percent of the total debt. Together with the preexisting requirements, this can bring an individual’s mandatory amortization up to 3 % per year depending on the loan-to-value ratio of their home. Furthermore, banks are free to include harsher amortization plans in their terms and conditions. Due to the tightening rules, most banks have already introduced a policy against individuals lending more than five times their annual income.

•    From 1 st February 2018, the act of driving a car or other motorized vehicle with a mobile phone or other communication devices in a driver’s hand will be subject to a fine. Preexisting legislation already penalizes the use of communication devices while driving if it has a noticeably detrimental impact on the individual’s ability to control the vehicle, but the new legislation is intended to lead to a more substantial number of convictions and a safer traffic environment.

•    From the autumn of 2018, so-called preschool classes become mandatory for all children between six and seven years of age, though the exact age at which a child has to start may vary somewhat depending on what time of year they were born. Each municipality is responsible for providing a free preschool option for all children within their area. Parents may alternatively choose to enroll their child in an equivalent private preschool, most of which are paid for by the local municipality. All preschool classes contain elements of both play and education and are intended to prepare the children somewhat for their later school start.