In recent months, the issue of a shorter working week – in the form of a four-day week or a six-hour working day – has been on the agenda both once and twice.
While, for example, the Social Democrats and the municipal trade union have been positive about such a reform, the Swedish Confederation of Business, for example, has been critical.
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Photo: Claudio Bresciani/TT
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Shoka Åhrman: “Can reduce stress and burnout”
According to Shoka Åhrmansavings economist at SPP, there are several advantages to shortening working hours in the form of improved health and well-being.
– Shorter working hours can reduce stress and burnout, which leads to better physical and mental health. Employees get more time for recovery. A better balance between work and leisure is created, which can improve the quality of life and satisfaction with life, she says News24 and also highlights benefits for employers:
– It can also help companies retain and attract talent. Companies that offer shorter work weeks may be more attractive to job seekers and may find it easier to retain their current employees.
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They can receive SEK 4,000 less in pension
But Shoka Åhrman also points to the consequences that a shorter working week can have for the Swedish pension system and pensioners as a group. According to a calculation made by SPP, which The newspaper Näringslivet was the first to report, namely that it could lead to a “significant reduction” in pension provisions for some.
– For a person who is a middle-income earner with a salary of SEK 35,000 a month, it is about several thousand kroner less in pension provisions per month, and for a high-income earner with a salary of SEK 65,000 a month, the reduction is approximately SEK 4,000 per month. This corresponds to a 24 percent lower pension.
Photo: Martina Holmberg/TT
Furthermore, Åhrman believes that shorter working weeks would result in an increased cost for basic protection.
– With lower wages and productivity, the number of people who qualify for guaranteed pension increases, which is financed via the state budget. This could lead to higher costs for the state, she says, and states that it would also have an effect on the balance sheet:
– If the number of hours worked decreases and thus future tax revenue decreases, the balance figure is negatively affected, which can reduce pensions for current pensioners.
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Can also affect those who opt out of a short working week
How would prospective retirees, who do not choose a shorter working week but continue to work full-time, be affected by others choosing to shorten working hours?
– Lower payments to the pension system can affect the sustainability of the pension system in the long term and lead to reduced pensions even for those who worked full-time. Therefore, it is important that an evaluation is made of lower wages and pensions and their effects on both the individual’s finances and also the pension system, Shoka Åhrman answers.
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