What insurances do I get for my employee?
When hiring international employees (or even natives Swedes for that matter) you must ensure that they are correctly insured. This becomes especially critical if you have international employees extending their work permits. Insurances can be a bit of a jungle to navigate through, but don’t worry. We’re here to help clarify some things regarding insurances.
Four mandatory insurances
The Swedish Migration Agency request that you showcase that you have provided or will provide the following four insurances for your employee
Life insurance
Health insurance
Insurance for occupational injury
Occupational pension insurance
Your employees should have life insurance through their work. Usually the life insurance is a group life insurance called “tjänstegrupplivförsäkring” or TGL for short. The TGL will provide the employee’s family with a lump sum in case of death.
If your employees become ill for an extended period, they may be entitled to health insurance. The different alternatives to a health insurance depend on if your employee is a manual worker (blue collar) or a non-manual worker (white collar). For all insurances these two distinctions are always made and different insurance companies will provide different solutions based on the workforce being manual or non-manual workers.
Insurance for occupational injury however is different from health insurance. The widely know insurance for occupational injury in Sweden is called “trygghetsförsäkring” or TFA. The TFA applies in the event of accidents at work, travel accidents on the way to and from work and occupational illnesses. All employees should have insurance that covers injuries or accidents at work. The TFA is exclusively administered by Fora AB but other insurance companies give similar solutions.
Most people who work today in Sweden earn money towards an occupational pension, and so should your employees. For non-manual workers the occupational pension is called ITP (1 or 2) and for manual workers the collective pension, SAF-LO. These occupational pension insurances are provided for those companies who have collective agreements. Similar solutions can be given by other insurance companies for those organizations without collective agreements.
How do I set up these insurances for my employee?
Well first of all you have to distinguish what type of workers you have at your company. Manual workers (swe: arbetare) are for example warehouse workers, cleaners, personal assistants, retail workers, construction workers or truck drivers. Other examples include working in the restaurant or hotel industry. As a non-manual worker (swe: tjänsteman) you would for example work in an office, in IT or economy. You could also hold a managerial position.
Okay now that you know what type of worker your employee is, we can start looking into the insurances. Do you have a collective agreement for your employees?
Yes? Then your collective agreement should cover all of the needed insurances and should be established when you enter the collective agreement. It is your responsibility to ensure that the insurances are in place for your employees.
For a manual worker with a collective agreement the life insurance (also called TGL), health insurance (called AGS), the insurance for occupational injury (TFA) are provided by AFA Försäkringar and the occupational pension insurance is administered by Fora.
For a non-manual worker with a collective agreement the insurance for occupational injury (TFA) is also covered by AFA Försäkringar. However, your health insurance and occupational pension insurance are with a company called Collectum. Finally, the life insurance can be administered by an insurance company of your choosing.
If you don’t have a collective agreement however, there are still ways to set up insurances for your employees.
For a manual worker without a collective agreement, Fora can provide a good solution for you. It is called "Försäkringsavtal" and includes the TFA, the TGL, the AGS and the occupational pension insurance.
For a non-manual worker without a collective agreement it is slightly more complicated. You can still get the TFA from AFA Försäkringar (purchased from Fora AB). The other three insurances you have to get from another insurance company of your choosing. Some companies offer alternatives to the TFA that the Swedish Migration Agency will still accept.
Why are these insurances requested?
The Swedish Migration Agency request these insurances to ensure that the employment is in line with Swedish collective agreements or what is customary for your profession or industry. Remember to have insurances for your employees throughout their full employment.
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