Proposed 90% salary threshold sparks alarm among business groups as thousands of jobs hang in balance
STOCKHOLM – Swedish industry leaders are sounding the alarm over proposed changes to work permit regulations that could force thousands of skilled foreign workers to leave the country and make Sweden significantly less attractive to international talent.
The government, supported by the Sweden Democrats, plans to raise the minimum monthly salary requirement for work permits from SEK 29,680 to SEK 33,390—a jump from 80% to 90% of Sweden’s median salary. The change would affect both new applications and renewals, potentially displacing workers already established in the Swedish labour market.
Thousands of Jobs at Immediate Risk
Almega, representing Sweden’s service sector employers, estimates that as many as 5,000 existing work permits could be jeopardized by the higher threshold. Their analysis reveals that numerous foreign employees currently working legally in Sweden earn below the proposed minimum and would fail to qualify for renewal.
“These are not theoretical concerns,” warns Almega. “We’re talking about productive workers who are already contributing to Sweden’s economy but could be forced out despite their expertise and ongoing value to their employers.”
Tech and Industrial Sectors Face Competitive Disadvantage
Teknikföretagen, which represents Sweden’s industrial and technology companies, has issued equally stark warnings about the policy’s long-term implications. The organization argues that the new rules will discourage international professionals from considering Sweden as a career destination.
“Many international recruits in knowledge-intensive sectors start at salaries below this proposed minimum,” explains Teknikföretagen. “They eventually advance to higher-paying leadership or specialist roles, but this policy would cut off that talent pipeline before it even begins.”
The concern extends beyond recruitment to retention. Software engineers, developers, and technical specialists in early-career stages often earn below the threshold, putting Sweden at a disadvantage in the fierce global competition for tech talent.
Which Sectors Will Suffer Most?
The impact will be felt most acutely across five key sectors:
Technology and IT face perhaps the greatest strategic risk. International engineers and programmers frequently begin Swedish careers at salaries below the new bar, threatening the talent inflows critical to Sweden’s digital economy.
Manufacturing and industry employers worry that junior technical and operational roles—particularly in export-driven sectors—will become difficult to fill, as many positions start below the requirement.
Service industries including cleaning, maintenance, and personal care currently employ numerous foreign workers at wages that fall short of the threshold, jeopardizing thousands of positions.
Hospitality and restaurants are especially vulnerable, with typical entry-level pay in hotels, restaurants, and catering rarely reaching the proposed minimum.
Construction presents a mixed picture, though many labour positions would be excluded unless granted specific exemptions for shortage occupations—details of which remain pending.
Northern Sweden: Where the Crisis Hits Hardest
While the policy would affect the entire country, Sweden’s northern and rural regions face the most severe consequences. Norrbotten, Västerbotten, and municipalities including Skellefteå, Kiruna, Pajala, Gällivare, and Vimmerby are experiencing surging labor demand driven by industrial expansion in green energy, mining, and manufacturing.
These regions face a perfect storm: rapid industrial development colliding with limited local labour supply due to aging populations and already-low unemployment rates. Foreign workers have become essential to filling critical gaps, particularly in healthcare, construction, and industry.
The spatial dimension of the crisis reveals a troubling paradox. Urban areas with higher unemployment may weather the storm for some lower-paid positions, but rural communities face absolute worker shortages. For them, the new salary threshold doesn’t just make recruitment harder—it could halt economic development entirely.
Exceptions Promised, Details Pending
The government has indicated that exemptions may be granted for occupations facing acute staff shortages, potentially including healthcare and specialist IT roles. However, formal details and comprehensive lists remain pending, leaving employers in limbo.
Business organizations are demanding thorough impact assessments and meaningful consultation. They argue that without substantial exemptions and transition measures, the policy risks undermining Sweden’s international reputation as an open labour market.
“We need flexibility for shortage occupations and realistic adjustment periods,” industry groups emphasize. “Otherwise, Sweden could lose thousands of skilled workers in the near term, damaging sectors already struggling with recruitment challenges.”
The Broader Stakes
The Swedish Migration Agency confirms that the current 80% threshold has been in effect since June 17, 2025, making the proposed jump to 90% a significant additional hurdle. For a country that has traditionally positioned itself as globally competitive and open to international talent, the policy represents a potential turning point.
As business leaders lobby vigorously for more gradual implementation and broader exemptions, the question remains whether policymakers will balance immigration control objectives with the practical realities of Sweden’s labour market needs. The answer will shape not just individual companies and workers, but Sweden’s competitive position in the global economy for years to come.
The final legislative proposal and complete exemptions list are expected in the coming months.