New rules for labor immigration – stricter requirements and new sanctions proposed from 1 June 2026 

Following extensive inquiries and consultation rounds, the Swedish government has decided to implement new and stricter rules for labor immigration. The aim is to combat the exploitation of foreign workers and labor market crime, strengthen protections for foreign employees, and facilitate the entry of highly qualified labor into Sweden. The new regulations are proposed to enter into force on 1 June 2026.

As of 1 June 2026, the salary offered in work permit applications must amount to at least 90% of the median salary in Sweden (previously 80%, currently equivalent to SEK 29,680). This threshold will be adjusted annually based on statistics from Statistics Sweden (SCB). The government will have the authority to grant exemptions for certain occupational groups, such as shortage occupations or where collectively agreed wages fall below the threshold. Certain categories, such as berry pickers and personal assistants, may be entirely excluded from eligibility for work permits. The need for exemptions will be subject to further investigation.

For stays of up to one year, applicants must have or have applied for comprehensive health insurance which is valid in Sweden. This requirement already applies to EU Blue Card holders, ICT permits, and residence permits for research and higher education studies. The government sees no reason to treat work permit applicants differently in this regard and therefore proposes that the requirement be extended to these applications as well.

Work permits may be denied if the employer is reasonably suspected or convicted of crimes punishable by more than fines, or offenses related to labor exploitation, human trafficking, or tax evasion. 

Additionally, the penalty fee for employers who have hired individuals without the legal right to reside or work in Sweden will be increased from one to two income base amounts per person, and from two to four base amounts for violations exceeding three months. The same levels apply to contractors within subcontracting chains.

ICT permits and seasonal work will be subject to minimum wage requirements based on collective agreements or established practice, and the standard maintenance requirement will be removed. EU Blue Cards for highly qualified workers may be granted for up to four years (previously two years). 

The government also proposes that certain occupational groups be excluded from eligibility for work permits. Previous investigations have identified sectors such as cleaning, construction, transport, staffing, and personal assistance as being overrepresented in misuse of the regulatory system and exploitation of labor immigration. However, it has not yet been determined which occupations will be affected. The government proposes that the list of excluded occupations be adjustable based on assessed needs.

The new rules are proposed to take effect on 1 June 2026. Applications for extensions of work permits granted before this date will be subject to the previous rules, provided the renewal application is submitted no later than 1 December 2026. The new salary requirements will not apply retroactively to previously granted permits.

KPMG views many of the proposed changes as expected and aligned with the government’s intention to tighten labor immigration regulations and place greater emphasis on attracting highly qualified professionals.

The new rules bring increased clarity and predictability, but also greater administrative and practical complexity for both employers and authorities. The government’s ability to introduce exemptions and exclude certain occupations provides some flexibility but may also create uncertainty around how the rules will be applied in practice. It will therefore be important to monitor the effects of the legislative changes to ensure compliance and legal certainty. 

Companies will need to review their procedures and ensure that salary thresholds, insurance requirements, and employer obligations are met. The administrative burden and need for clear information will increase, particularly for small and medium-sized enterprises. The proposed increase in the salary threshold, from SEK 29,680 to SEK 33,390 (based on current levels), may have significant implications for employers seeking to retain or recruit foreign labor whose wages are close to the threshold. 

We also anticipate that applications for EU Blue Cards may become more attractive due to the possibility of longer permit durations.

Please feel free to contact us if you have any questions regarding the new regulatory framework.

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The article in Swedish