On January 1, 2025, several extensive changes came into force that affect Swedes’ private finances. One group in society who could count themselves lucky when the new year began were the pensioners.
The reason was that several changes would directly affect their wallets. Namely, it had been decided whether tax breaks on pensions and strengthened allowances would be implemented, for example through the increased dental care allowance.
The background to tax relief aimed at pensioners is thanks to the strengthened employment tax deduction, for those who continue to work after reaching retirement age, as well as the strengthened basic deduction.
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The contribution needed to be increased – the first time in 13 years
However, something that surprised many was when the government presented the budget in late summer 2024. It had been decided that allowances would be increased, by one for the first time in 13 years.
It is about the sickness and rehabilitation allowance, which was raised on 1 January 2025, for the first time since 2012.
– Now an important reinforcement is finally being implemented for people with sickness and rehabilitation allowance in special cases. The compensation has not been increased since 2012 and concerns a particularly vulnerable group, said the Minister for the Elderly and Social Insurance Anna Tenje (M) in one press release in connection with the budget being presented.
The government and the Sweden Democrats believed that the compensation needed to be increased for those who make a living from it.
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This is how much the contribution has been raised in 2025
The established decision later resulted in the sickness and rehabilitation allowance being increased by SEK 70 per day starting on January 1, 2025. This means that it is now possible to receive SEK 2,100 per month.
In addition, the housing allowance was also increased by SEK 1,700 per month and the child allowance by SEK 500 per child up to three children.
“The increase is particularly important for single people with children who, due to a reduced ability to work, find themselves in a financially vulnerable situation,” the government wrote when the proposal was presented.
Housing allowance is a compensation you can get if you have sickness and rehabilitation allowance in special cases. As both the sickness and rehabilitation allowance, the housing allowance and the child allowance were all increased, in 2025 it is possible for a single person with a child who needs sickness and rehabilitation allowance to receive SEK 4,300 a month before tax.
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