“Föräldrapenning” or parental allowance is a financial support system designed to ease the financial burden on new parents in Sweden, allowing them to take a well-deserved break from work to care for their newborn or adopted child.

This guide aims to demystify the process, breaking down who’s eligible, how to apply, the types of allowances available, and, most importantly, how much financial support you can expect in simple, straightforward terms.

What Is Parental Allowance In Sweden?

Parental allowance, or “Föräldrapenning,” is a financial aid given by the Swedish government to parents, allowing them to take time off work to look after their newborn or newly adopted child without the stress of losing their entire income.

This system is part of Sweden’s approach to ensure that parents can be actively involved in the early stages of their child’s life without needing to resign and go unemployed, thus promoting a healthy work-life balance.

You might be interested in: How to write a resignation letter in Sweden?

Conditions for Receiving Parental Allowance:

The amount you receive from this allowance will be a percentage on your income before taking leave.

So, essentially, the system is designed to replace a significant portion of your salary, ensuring you can afford to take time off work to be with your child without facing financial hardship.

Here’s what you need to know:

• Income-related: You’re eligible for an allowance that is approximately 80% of your regular income for up to 390 days. For the remaining 90 days, a flat rate is paid out.
• Employment Status: Both employed and self-employed individuals can qualify for parental allowance, as long as they have been working and paying taxes in Sweden.
• Ceiling Limit: There’s a cap on the amount of income considered for the calculation. This means if you earn more than the cap, your allowance won’t increase proportionally with your income above this limit.

I know, you may be asking… Who pays for it?

In Sweden, the employer does not directly pay parental allowance; it is the Swedish Social Insurance Agency (Försäkringskassan) that administers and disburses the payments to eligible parents.

Let’s see a quick example: Imagine Alex, who earns 30,000 SEK per month, decides to take their full parental leave at once to care for their child. Given the Swedish parental allowance system, Alex can apply for “Föräldrapenning” and receive about 80% of their income for a significant portion of this period. Alex would be receiving around 640 SEK per day for the majority of their leave days.

Who Can Receive Parental Benefits In Sweden?

To be eligible for parental benefits in Sweden, several criteria need to be met:

1. Employment Status: Primarily, you should be employed (that applies for both Sweden nationals and foreigners residing in Sweden, even if you need to take parental leave during the probation period). Nonetheless, Sweden’s inclusive social security system ensures that self-employed individuals, freelancers, or those between jobs can also qualify for parental leave benefits​​.
2. Parental Relationship to the Child: You must be the biological or adoptive parent of the child you’re taking leave for and you must show supporting documentation to prove this
3. Coverage by Social Insurance in Sweden: To receive parental benefit, you must be covered by social insurance in Sweden. This applies if the child resides in Sweden, or lives in the EU/EEA or Switzerland. Parental benefit is available for 480 days per child, with each parent generally entitled to 240 days. If you have sole custody, you are eligible for all 480 days​​.
4. Income-Based Benefits: For 390 of these days, the parental benefit is based on your income, while for the remaining 90 days, the benefit is paid at a minimum level (180 SEK per day)​​.

What About Freelancers?

Self-employed individuals are indeed eligible to apply for parental benefits, ensuring broad access to this support.

How to Apply for Parental Allowance in Sweden?

Applying for parental allowance in Sweden is a straightforward process that involves a few key steps:

1. Gather Necessary Documents: Before you start the application process, ensure you have all required documents. These typically include identification papers (passport or Swedish ID), your employment contract or proof of employment, and medical certification confirming the pregnancy and the expected due date for maternity leave. For adoptive parents, legal documents affirming adoption are needed​​.
2. Notify Your Employer: It’s important to inform your employer (through the HR department) about your intentions to go on parental leave (just like with a job notice). This should be done well in advance, ideally providing formal notice at least two months before your intended start date of leave​​.
3. Register Your Leave with Försäkringskassan: Before applying for parental benefit, you must register your leave. This can be done online on Försäkringskassan’s website if you have a Swedish electronic ID. It’s essential to register no later than the same day you want the compensation to start​​. Here are the steps to follow:
   • Log In Försäkringskassan’s Website
   • Once logged in, look for the section or link to “Register for Parental Benefit” (Anmäl föräldrapenning)
   • Carefully fill out the registration form
   • Before submitting, double-check all the information you’ve entered for accuracy. Then, submit your registration
   • After submitting your registration, you should receive a confirmation from Försäkringskassan. This might come as an email or a notification on your My Pages (Mina sidor) dashboard on Försäkringskassan’s website.
   • Following registration, you’ll need to officially apply for parental benefits. This might involve providing additional documentation or details about your employment and salary
   • (if you’re an English speaker that doesn’t speak Swedish yet, don’t worry, there is help in English too in this website)

After Applying

The processing time can vary, but once approved, you will receive a formal notification detailing your parental leave benefits.

I’d say to follow up if you don’t receive confirmation within a reasonable timeframe​​.

The specific dates and arrangements for the payment will be communicated by Försäkringskassan but I always make the point that it’s essential to ensure that all your bank details are correct and up to date to receive your funds without any issues​​. I’ve heard of some nightmares when this is not done properly.

Pro-tip: Throughout the process, Försäkringskassan will remain in communication with you, primarily through their online portal (My Pages) where you can track the status of your application, view preliminary disbursements, and get notifications about the payment​​.

Sharing Parental Allowance with Your Partner

Yes, you can share parental allowance with your partner.

You can both be off at the same time, take turns, or mix and match days. It’s about sharing the load and making sure both of you get to spend time with your child.

For How Long Can You Receive Parental Allowance In Sweden?

In Sweden, the maximum duration for receiving Parental Allowance is 480 days per child.

This allowance can be used until the child turns 8 years old or finishes the first year of school, thus transforming your working hours into quality time with your children.

Let me refresh your memory regarding how it’s structured:

• 390 days are compensated at the sickness benefit level, which is based on your income, ensuring that most of your leave is paid according to what you usually earn.
• The remaining 90 days are paid at a flat rate, which is a standard amount set by the government, independent of your previous income.

These 480 days are meant to be shared between both parents, with each parent having 90 days reserved exclusively for them. This encourages both parents to take an active role in childcare.

Parents have the flexibility to take leave simultaneously, allowing families to spend time together during these critical early stages of their child’s life.

You might be interested in: How to take sick leave in Sweden?

How Much Parental Allowance Will You Receive in Sweden?

In Sweden, the amount of Parental Allowance you’ll receive as an employee depends on a few key factors, such as:

• Your Salary: The most significant factor is how much you earn. The allowance is designed to reflect your usual income, up to a certain cap, ensuring you can maintain a similar standard of living while on leave.
• Days of Leave Taken: The percentage of your salary you receive can vary depending on how many days you take off at a time. Taking fewer days per week can extend the duration of your leave but might affect the daily payment rate.
• Previous Leave: If you’ve taken any parental leave in the last year, it could influence your current allowance calculation, especially if your income has changed during this period.

You might be interested in: What is a good salary in Sweden?

Examples of Parental Allowance

Example 1: Full Salary-Based Allowance

• Assume an employee earning 30,000 SEK/month.
• For the 390 days at the sickness benefit level, they could receive approximately 80% of their salary, up to the income cap of around 51,300 SEK/month (for 2024). This means they could get up to 24,000 SEK/month before tax.

Example 2: Flat Rate Allowance

• For the 90 days at a fixed rate, regardless of previous income, the daily allowance is set to a standard amount, which could be around 180 SEK/day for 2024. This amounts to approximately 5,400 SEK/month for a full month of leave days.

Example 3: Mixed Allowance with Part-Time Work

• If an employee decides to work 50% and take parental leave for the remaining 50%, the allowance would be based on 50% of the sickness benefit level for the income-based days. For a 30,000 SEK/month salary, this means they’d receive around 12,000 SEK/month before tax from the parental allowance, in addition to their salary for the days worked.