Social security contributions

Caroline Högström (M)

Mr. Speaker! The Moderates' position is fundamentally that it is not only important but also necessary to both simplify for entrepreneurs and make it cheaper to hire. It is therefore necessary to take a holistic approach regarding social security contributions, or employer contributions as they are commonly called. Through these, one can in different ways stimulate companies and direct important measures. This can involve people who are far from the labor market or who are new to the labor market. In the budget bill for 2023, a decision was made, for example, on a reinforcement of the reduction of employer contributions for people who work with research and development. It is a clear example of a targeted measure.

Mr. Speaker! The result of the Social Democrats' eight years in government is not only historically high electricity prices, unemployment, and insecurity, but also record-low growth. The reform agenda and the necessary paradigm shifts that need to occur in several areas are therefore of the highest priority for the Moderate-led government. The Tidö Agreement contains a more efficient jobs policy and important reforms for entrepreneurs. We want employers who hire the long-term unemployed to be met with lower employment costs and for companies to have competitive conditions. We also want the skills supply to be strengthened. Social security contributions can be part of that work.

Mr. Speaker! A significant increase in knowledge is also needed to see how much it actually costs to have someone employed in one's company. It is not only the salary that one pays but also the social security contributions. An example: Employing someone of my age with a salary of 25,000 kronor costs approximately 38,000 kronor.

Through social security contributions, companies are involved in and finance our common safety net and our social insurances. But there must also be a sense of reasonableness in the level and long-term conditions. There will likely be reasons to have future discussions on both social security contributions and the companies' conditions to hire and grow.

(Applause)

In this speech, Magnus Resare and Viktor Wärnick (both M) concurred.

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Annika Hirvonen (MP)

Mr. Speaker! Caroline Högström gave a speech stating that there is a need to adjust the fees and ensure that they do not become too high. At the same time, the Moderaterna are now voting down a proposal for an exemption from the requirement to pay social security contributions for leisure leaders within outdoor activities.

I wonder why the Moderates think it should be more expensive to have leisure leaders for children and youth within outdoor activities than it is within sports.

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Caroline Högström (M)

Mr. Speaker! I believe there are reasons to take a holistic approach to this. Member Hirvonen also knows that it is stated in the committee's report that the background for why exceptions do not exist otherwise than within the sports movement are different court cases. Therefore, a holistic approach is probably required. I believe it is necessary to cooperate with, for example, the Culture Committee on the issue. I cannot answer why one should not approve the motion, but I believe it is necessary to take a holistic approach to the issue. One should not build on with exception after exception. A holistic approach is needed to provide clarity in the exceptions that exist.

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Annika Hirvonen (MP)

Mr. Speaker! If we want to tackle this issue, we in Miljöpartiet have a proposal today. That proposal is that the Riksdag stands behind what is stated that the exemption in the social security contributions act for leaders' compensation that applies to members of Riksidrottsförbundet shall also apply to the outdoor organizations and announces it to the government.

When the Riksdag makes such an announcement, the government receives a mandate to look into the issue and return with a investigated proposal. The process that is initiated through an announcement – the decision we could vote on today – naturally becomes thorough and civil society is broadly involved. We in Miljöpartiet think it is strange to make a distinction between, on one hand, running in the forest within the framework of orienteering and, on the other hand, activities in the forest for the same group of young people but within the framework of an outdoor organization.

It is something incredibly valuable and positive that there are organizations that engage children and young people in moving outdoors in nature, whether it is within the framework of the Swedish Sports Confederation's activities or some other activity for children and young people. But the conditions are not good as they appear today. Therefore, I want to ask the Moderaterna: If you now think that this should be reviewed, why don't we decide that today?

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Caroline Högström (M)

Mr. Speaker! Unlike Member Hirvonen, I trust that the government is prepared to look at what needs to be looked at. I cannot speak for whether it is this exception or other exceptions. I trust that the government – if it should be necessary – will do so. But in the current situation, I cannot say that it is needed, but I trust that the government will take action on it if it should be necessary.

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Angelika Bengtsson (SD)

Mr. Speaker! I would first like to move for approval of reservation 3 regarding exemptions from the requirement to pay social security contributions.

If there is one thing we have learned from the pandemic, it is to socialize outdoors. Guess if outdoor life has experienced a boom! The answer is yes, if anyone thought otherwise. We have toured and experienced our Swedish nature like never before. This, in turn, has led to an upswing in continued engagement in outdoor life. Their member organizations are still noticing the influx of members.

Public health and sports have strong ties between them, and sports is a large sector with strong resources if one compares it with outdoor life. However, both are significant for public health work.

But why debate outdoor life when it is going well for the organizations, which are getting more members, and when we still spend much more time out in nature?

A question we as a party have championed in this chamber for several years is that Swedish outdoor life should be covered by the social security contribution act's half-base amount rule, which the Swedish Sports Confederation is covered by. Compensation to sports practitioners from non-profit associations that have the purpose of promoting sports activities is, according to Chapter 2, Section 19 of the Social Security Contribution Act, exempt from fees if the compensation during the year has not amounted to half a price base amount. It becomes very technical here, but it is so that the debate can be understood.

Svenskt friluftsliv, with its 27 sub-organizations and 1.6 million memberships, is however not covered by the rule on half the basic amount. Skatteverket argues that the legal text specifies that it must concern specific sports practitioners for the rule to apply. Thus, it primarily concerns sports organizations affiliated with Riksidrottsförbundet but also activities within outdoor life with a sports orientation. When one is forced to define on a case-by-case basis what is considered sports and what is considered other interests from this starting point, problems arise.

We cannot have legislation that treats similar activities differently. One example is when a swimming instructor teaches a child to swim through a member organization of the Swedish Sports Confederation, or when another trained leader within an outdoor life organization teaches swimming. The same life-saving instruction is performed, but it is done by two different organizations covered by two different legislations. Unreasonable? Yes.

Mr. Speaker! The problem description encompasses not only the question of what promotes public health but also the interest in a coherent perspective and what actually justifies fees.

Critics have expressed that even if we were to expand this rule, difficult boundary lines would remain, and it would actually create an even more unclear system. I argue, however, that there is an incredibly clear difference between associations that on occasional occasions choose activities with a focus on sports or outdoor life and those that on a regular basis engage in some form of sports or outdoor activity.

What we propose in our reservation is that more people get the opportunity to participate in activities that benefit their health and well-being, which strengthens recreation and our country. This change is also a prerequisite for more people to engage voluntarily, an issue that also ranks high on the agenda. Promoting public health should not be reserved for those who engage in sports at a professional level.

Everyday exercise is decreasing today while sedentary behavior is increasing. The natural relationships to movement, exercise, and spending time in nature are becoming fewer. To address this negative development, decisive action is required, and part of that is to strengthen the position of outdoor life in society and to facilitate for the organizations that operate within the field.

Svenskt Friluftsliv works not only to create the best conditions for outdoor life in Sweden and to ensure that the member organizations are strong, but also to raise the status of outdoor life in society as well as to nurture and protect the right of public access.

In summary, we argue that organizations affiliated with Svenskt Friluftsliv should be covered by the exemption in the Social Insurance Act in the same way as organizations affiliated with Riksidrottsförbundet.

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Camilla Rinaldo Miller (KD)

Mr. Speaker! I would like to begin by expressing my support for the committee's proposal to reject the motions regarding social security contributions.

Mr. Speaker! Sweden is a good country to live in, and our welfare system is something we should be proud of and manage well. For me as a Christian Democrat, the idea of solidarity is one of the fundamental principles in the design of politics. In a good society, everyone should share in the economic prosperity, and no one should fall outside of society's community. Everyone should have the right to social security.

Social security contributions are collected to finance the social security system, and it is social security contributions that we are now debating. It is an important area that concerns preserving our welfare systems. This is primarily achieved by physical persons who conduct active business activities paying employer contributions. Everything is regulated in the Social Security Contribution Act and the provisions that apply to social security contributions.

Several of the motions we are dealing with today propose reduced fees, primarily aimed at small business owners. That I myself am one of those who would benefit from these reductions should make me think that they are good proposals. But I do not stand here to speak for what would benefit myself.

Mr. Speaker! The current government is responsible. Given the economic situation that Sweden and the world find themselves in, there is no room to make major changes within what we are debating today. The motioners' intentions are good, and we will, of course, do everything to ensure that it is attractive to run businesses in Sweden.

A number of the motions we are dealing with concern the reduction of social security contributions. The current regulatory framework already allows for the reduction of employer contributions in several situations. For example, this applies to employees who, at the beginning of the year, are between 15 and 18 years old or who have reached the age of 66. Furthermore, employer contributions for 19-23-year-olds have been reduced from 1 January 2021 up to and including 31 March 2023.

Young people's establishment in the labor market is important for the individual and for the business sector, but also for families. Having a job to go to and a series of entries on one's CV, being able to support oneself and feeling needed and in demand are keys to feeling well and having a meaningful life.

Personally, I began my career as early as 16 years old, immediately after I finished ninth grade. I am grateful that since then I have had the opportunity to work with various different things, such as cleaner, cashier, factory worker, and then 25 years back, hairdresser and self-employed. I am grateful that I got the chance on the labor market already as a young person.

Mr. Speaker! Since 2017, there has also been an opportunity directly aimed at small business owners. Sole proprietorships are entitled to a reduction in employer contributions when a first person is employed in the company. In addition, there are other measures that the government has or will implement that will benefit small business owners.

We know that small businesses create nine out of ten jobs. Therefore, it is incredibly important for me and for the government that there are good conditions for being able to conduct business activities. All these entrepreneurs contribute to our ability to preserve the welfare systems. Small businesses and their employees collectively account for the largest tax revenues at the municipal level.

The Christian Democrats want to improve the business climate, among other things through competitive taxation, reduced red tape, and lowered fees for companies. The government is now taking important steps in the right direction.

Mr. Speaker! Before I conclude my speech, I would nevertheless like to extend a thank you to the proposers who have invested time and engaged themselves in this important area. Thank you for highlighting the business sector and emphasizing how invaluable and significant it is for preserving the Swedish welfare system.

Once again, I stand behind the committee's position.

(Applause)

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Annika Hirvonen (MP)

Mr. Speaker! I want to give Camilla Rinaldo Miller the opportunity to also comment on the second major issue in the report that was not addressed in the presentation, namely the issue of the different rules that currently apply to organizations that have leaders within sports and organizations that have precisely the same health-promoting activities within outdoor life. There are several motions, including from us in Miljöpartiet, to equate these activities in the rules for social security contributions.

Today, an orienteering association that is a member of Riksidrottsförbundet receives lower costs for its leaders and can therefore have more activities with more compensation for those who, many times, primarily work voluntarily, compared to an outdoor organization that conducts similar activities in the same forest for the same children and youth. I wonder why the Kristdemokraterna think it is reasonable to make this difference.

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Camilla Rinaldo Miller (KD)

Mr. Speaker! I thank Annika Hirvonen for that I also get to answer this question. In the committee's deliberations, one weighs back and forth what is right and what is not. I think Caroline Högström answered very well. One looks at what opportunities for change there may be but finds that one should not support precisely those motions that Miljöpartiet and some other party have written.

I am very poorly informed, Annika Hirvonen, but is it not the case that these outdoor organizations could join the Swedish Sports Confederation and in that way receive a share of what you are now proposing in the motion?

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Annika Hirvonen (MP)

Mr. Speaker! I believe it is our responsibility as legislators to ensure that we have a reasonable regulatory framework. I do not think that the outdoor organizations should be forced to be members somewhere, but rather we should look at the activities.

Based on the starting point that we in Miljöpartiet believe it is just as important to promote outdoor life as sports, we want the same regulatory framework regarding social security contributions. Today, that is not the case. It is a question of values whether one thinks that outdoor life is worth as much as sports. If we politicians think that the regulatory framework that exists today does not work, is not applied as we want, or does not look the way we want, we have a responsibility to change it.

I want to ask again: Why do the Christian Democrats think it is good that the outdoor organizations have higher costs for their leaders than the sports organizations?

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Camilla Rinaldo Miller (KD)

Mr. Speaker! I thank Annika Hirvonen for still answering the question a little bit. She says that we should not force other organizations into the Swedish Sports Confederation. At the same time, Annika Hirvonen answers that the possibility exists. In that case, it is still the case that we have a regulatory framework that works. But in the consideration that the committee has backed and which comes from our government, it is said that one wants to see if it is possible to make changes.

I want to emphasize that the Christian Democrats do not make any distinction between athletics activities and outdoor activities. All movement is important. We know that it is very important today that children and young people are given the opportunity to move. We make absolutely no distinction there. I want to be careful to emphasize that.

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Vasiliki Tsouplaki (V)

Mr. Speaker! For us in Vänsterpartiet, it is obvious that we should build a strong health insurance and that the social security contributions, a wage space that the wage earners have waived, are needed in that equation, but no rule without exceptions. In today's report, there is a motion from Vänsterpartiet with a proposal for an investigation into changing the regulatory framework for social security contributions within the voluntary sector. We agree with the argumentation that has been presented on this earlier in the debate. We see that this could lead to people being able to afford to pay more leaders who are willing to provide their time and commitment. It is also important for us that the voluntary sector has simple and clear regulatory frameworks and as little administration as possible, so that time and energy can be spent on, for example, activities with children and young people.

After the corona pandemic, there is not only a healthcare debt, which is being worked on fully, but also a larger public health debt in a broad sense. Increased staying at home, social distancing, and reduced opportunities for organized sports over many years are some of the ingredients that risk causing both physical and mental ill health in both the short and long term.

The active, systematic and long-term public health work aims for the population to be able to live longer and healthier lives regardless of gender, class and other background. Today, there are large differences in health and life expectancy based on, for example, class affiliation.

Research shows that exercise, sports, and outdoor life are activities that strengthen health. Politics at all levels and in all relevant committees here in the Riksdag need to contribute their part to create good conditions for these activities. With 3 million members within the sports movement and 1.6 million members within outdoor life, we have a very strong starting point, but all too many still stand outside.

Mr. Speaker! Many children and young people who have not found their place within sports can thrive well in a club environment that is less performance- and competition-oriented. For them, just the outdoor life associations can fit very well. It became clear, however, during the pandemic that a large part of the leaders within outdoor life are older. Many were forced to refrain from activities for a long time. This showed a vulnerability within outdoor life and a need to replenish with new leaders.

In the latest evaluation of the outdoor life policy from 2019, the Swedish Environmental Protection Agency (Naturvårdsverket) stated that a change in the social security contributions act could help outdoor life and its associations to organize more. There are currently uncertainties regarding whether associations affiliated with the umbrella organization Svenskt Friluftsliv should be covered by the exemption that associations affiliated with Riksidrottsförbundet have for social security contributions.

The sports associations can remunerate their leaders with up to half a price base amount before they need to start paying social security contributions, as we have heard earlier here in the debate. But the Swedish Tax Agency has made different assessments in different parts of the country for outdoor life organizations. There are therefore uncertainties.

Many associations within outdoor life conduct activities that are very close to those carried out by organizations affiliated with Riksidrottsförbundet. Some are actually already dual-affiliated today, as they qualify for both of these umbrella organizations. That is how it looks today. One can be a member of both if one has an activity that qualifies under the regulations.

These court cases have, of course, been appealed, and there have been different outcomes. The uncertainty itself is very unfortunate both for the association life and for authorities that are to pay out grants, the Swedish Tax Agency and so on. Therefore, there is a reason to review this.

Mr. Speaker! Vänsterpartiet proposes an amendment to the social security contribution act in order to equate different types of leadership positions within the voluntary sector. The last time I tabled a motion on this, whether it was one or two years ago, we were three parties that had similar requests: Vänsterpartiet, Kristdemokraterna, and Sverigedemokraterna. Now KD has, for some reason, changed its mind, which is regrettable. But Miljöpartiet has joined in. If we continue to raise the issue a few more times, perhaps we can actually gather a majority behind this proposal. I do not think it should be an ideological issue, but rather it is about our desire to protect public health and outdoor life in this way. I regret that more are not standing up today, but I move for approval of our reservation 4.

(Applause)

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Mauricio Rojas (L)

Mr. Speaker! The motions we are discussing today concern an aspect that is of great importance for the companies' ability to grow, create jobs, and generate prosperity. It is important to remember that the employer contributions, together with the wages and the agreed social security contributions, determine how high the employment costs will be. Thus, they constitute a strategic condition for how many jobs our economy is capable of creating.

The fees currently amount to 31.4 percent of the gross salary plus various benefit values. These fees include various items. For example, a mere one-third goes to the age pension. But it is also a pure tax on work that corresponds to more than one-third of these fees. This plus the income taxes gives a total tax burden of just over 42 percent for an average worker and on more than 50 percent for a worker with a high salary.

In a comparative perspective, these levels are very high and are more than 20 percent above the average for the OECD countries. They are also significantly higher than in the other Scandinavian countries, which in no way lag behind Sweden in terms of the population's prosperity. These figures illustrate the importance of the subject we are discussing today.

Mr. Speaker! It is extraordinarily important that Sweden has competitive taxes and fees that promote growth and the ability to create good jobs. This applies in particular to medium-sized and small companies.

We can observe that four out of five jobs created today in Sweden are created by companies with fewer than 200 employees. These so important companies must be given the right conditions to grow. It is a crucial piece of the puzzle to be able to manage integration, the jobs and the welfare.

Therefore, Mr. Speaker, it is positive that both the Centre Party and the Sweden Democrats highlight similar lines of thinking in their respective committee motions and point out the need to lower the employer contributions for the job-creating small businesses.

Equally important for Sweden's competitiveness is that work with innovation, research, and development is promoted. Therefore, it is pleasing to note, as appears from the budget bill for 2023, that the government intends to strengthen the reduction of employer contributions for persons who work with research or development, the so-called R&D deduction. One raises the ceiling for the deduction from 600,000 kronor to 1.5 million kronor.

At the same time, it is important to point out that tax cuts alone are not enough. Therefore, it is good that the government is initiating a broad reform process where the taxation of companies is reviewed, most recently with the supplementary directives to the 3:12 investigation where a tax increase is stopped.

Focus is also placed on the conditions for companies where it is important that administrative costs decrease. In this work that the government is undertaking in order to create better conditions for an entrepreneurial Sweden, I am convinced that many of the positive proposals contained in the motions we are discussing today will be taken into account.

If Sweden is to stand strong, attractive conditions are required for today's and tomorrow's companies. We must be an obvious country for everyone who wants to start, run and work in tomorrow's companies.

It is the individuals' creativity, entrepreneurship, and diligence that are the foundation of the Swedish welfare and which have created the Swedish export successes. In the Liberals' Sweden, the obstacles that hold back today's innovators and entrepreneurs shall be torn down. That is how everyone's welfare can be secured.

With that, Mr. Speaker, I would like to vote in favor of the committee's proposal in the report.

(Applause)

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Martina Johansson (C)

Mr. Speaker! Three out of five jobs are created in small and medium-sized enterprises. This is perhaps extra important during the time we have economic difficulties and a recession. It may be that it is employer contributions and social security contributions that make the difference whether a company dares and can hire a new employee.

Taxes and fees are needed for many different things, including our welfare. We see, of course, that they are needed. This can argue against wanting to lower something at the same time. But lowering just for small and medium-sized enterprises can, on the other hand, generate more tax revenue in another area. If they manage to employ more employees, we get higher income taxes and fewer costs in, for example, the unemployment insurance fund.

That is exactly why it is important to lower taxes and fees for small and medium-sized enterprises where three out of five jobs are created. I therefore move for approval of reservation number 2.

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Annika Hirvonen (MP)

Mr. Speaker! Every other Saturday, I meet a group of enthusiastic five-year-olds in a small football hall in the residential area where I live. We usually divide them into small teams, and everyone has their own football. Sometimes they run around in all directions, and sometimes we manage to organize some kind of match.

Training little girls in football was nothing I ever imagined would be a part of my everyday life. But being active in association life, engaging in what my children want to devote themselves to, and contributing to the local community has always been something that I, just like thousands of other people and citizens in our country, am passionate about. For my child's part, it became football.

It is a challenge to engage volunteer leaders. Everyone who is involved in an association probably knows that. It is a matter of finding someone to take responsibility for the legal fund, to be the treasurer, and to ensure that we fill up so that we manage to see every child during every training session. It is a challenge.

Social security contributions

Mr. Speaker! The challenge is exactly the same and exactly as great in the activities that do not call themselves sports but outdoor life. Yet, we have a rule that we have decided here in the Swedish Riksdag which says that precisely in sports, one should be granted exemptions from paying social security contributions for those leaders who only receive up to half a price base amount per year in compensation. For outdoor life, other rules apply.

We have had several debaters here today who have not wanted to take a stand for a change. The answer as to why they do not want to do so is a bit vague. But for us in Miljöpartiet, it is clear. It is just as important and just as valuable to support leaders engaging in outdoor life as in sports life.

Outdoor life in itself has many important values. Through the activities that outdoor organizations arrange, we open the door to Swedish nature for many people to experience and love. People who love nature are also the strongest protection.

Outdoor life, just like sports, has a completely central part in the work of promoting public health. It is movement, but it is also nature experiences. That in itself has a strong public health-promoting power.

Particularly important, of course, is the commitment to the local community and not least that children and young people should have a meaningful leisure time. For some, it fits perfectly to put on a jersey and run after a football and compete. For many children, it fits much better to run in the forest and look for twigs and learn to build a fire and to cooperate rather than compete.

We in Miljöpartiet want to encourage all of this, and we want to promote that more people spend more of their time - their valuable time - on an engagement in both outdoor life and in sports life.

Therefore, I move today for approval of the Miljöpartiet and Vänsterpartiet's reservation 4. We want the Riksdag to tell the government that it must review the rules that make a difference between sports organizations and outdoor life organizations when it comes to social security contributions.

(Applause)

The deliberation was hereby concluded.

(Decisions were made under § 7.)

Pensioner

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