Looking to hire? Here are support programs that can make growth easier

For many small business owners, every new hire is a milestone, whether it is the first employee or the seventh. Perhaps the order book is filling up, the customer base is expanding, or the workdays are becoming increasingly long. At the same time, the prospect of hiring often raises a number of questions. Will there be enough work in the long run? Can the business afford the additional costs? And how do you find the right person for the job?

Bringing in a new employee creates both opportunities and responsibilities. In addition to salary costs, employers must also pay social security contributions and other expenses, which can make the decision feel more daunting than it might otherwise be. For smaller businesses, where margins are sometimes tight, this uncertainty can become an obstacle even when the need for additional staff is clear.

This is precisely where public support programs play an important role. Their purpose is to make it easier for businesses to grow, create more jobs, and help more people enter the labor market. By reducing costs or sharing some of the risk, these programs can lower the threshold for employers considering recruitment.

Below, we take a closer look at two forms of support that may be particularly interesting for small business owners: the Growth Support and Labour Market Entry Agreement

Growth Support

Growth Support is designed for sole proprietors who want to expand their businesses by hiring employees. In practice, the support consists of reduced employer social security contributions.

According to Dennis Olsson, Business Support Specialist at the Swedish Tax Agency:

– Growth Support gives businesses the opportunity to hire one or two employees and receive reimbursement of employer contributions for them each month over a limited period of up to 24 months. This makes it easier and less risky to hire a first or second employee.

For businesses that meet the requirements, the support can amount to substantial sums. The reimbursement applies to salaries up to SEK 35,000 per month, resulting in a maximum reimbursement of SEK 7,423 per employee per month. For two employees, this corresponds to nearly SEK 15,000 per month.

– If the support is used throughout the entire 24-month period, the total reimbursement can amount to SEK 356,304, summarizes Dennis Olsson.

Growth Support is not limited to any particular industry or business structure. Limited companies, partnerships, and sole traders may all qualify. However, there are rules regarding whom you can hire.

– Many people assume they can receive Growth Support when hiring a close relative or a co-owner of the business, but that is not permitted under the regulations.

It is also important to remember that even if the company has only paid smaller amounts of compensation for a short period, for example to a summer employee, this may still be treated as having had an employee. As a result, the company may no longer meet the eligibility requirements for Growth Support.

The rules also impose requirements on the employment itself. For example, the position must be at least 20 hours per week, equivalent to half-time employment, and must last for at least three consecutive months.

No separate application required

Growth Support does not require a separate application before hiring. In practice, the employer pays wages and reports them in the employer declaration as usual. The company then applies for reimbursement of employer contributions through the Swedish Tax Agency’s online service. Once the agency has reviewed the case and confirmed that the conditions are met, the reimbursement is paid into the company’s tax account.

Apart from understanding the rules, does Dennis Olsson have any additional advice?

– Yes. It is a good idea to hire someone who intends to stay with the company long term. The first employee must still be employed when the second employee is hired if you want to receive Growth support for the second hire as well.

Labour Market Entry Agreement

For the next support program, we turn to the Swedish Public Employment Service. Labour Market Entry Agreement can be described as a pathway into the labor market for individuals who have difficulty finding work.

In simple terms, the employer benefits from lower salary costs, while the employee receives both wages and government compensation, along with an opportunity to gain experience and develop skills. The goal is for the position to lead to a regular permanent job.

One particularly attractive aspect of Labour Market Entry Agreement for employers is that they can be combined with skills development. The employee’s competencies can be developed according to both their own needs and the needs of the business, providing employers with a unique opportunity to find and shape the right person for their organization.

– The employer can therefore, at a relatively low cost, test and prepare a person for a specific role, explains Monica Jönsson, Senior Officer at the Swedish Public Employment Service.

As with Growth Support, certain requirements apply. The size and legal form of the business are not relevant, but the employer must be covered by a collective agreement that includes a central agreement on Labour Market Entry Agreement. The central agreement and local parties, together with the employer, determine how each employment arrangement should be structured based on the employee’s skills and development needs.

Labour Market Entry Agreement are always full-time positions, and employers pay a fixed amount for each employee.

– The amount is adjusted annually based on the income base amount, and for 2026 it is SEK 8,277 per month. Social security contributions are added to this amount, says Monica Jönsson.

Help with matching candidates

If you are interested in this type of employment support, you should first ensure that your company is covered by a central agreement for Labour Market Entry Agreement. Information about this can be obtained from your employer organization and from the Swedish Public Employment Service website.

You can then contact the Public Employment Service for assistance with finding suitable candidates.

– When we are contacted by an employer, we identify the competence requirements and assess the conditions for bringing in someone who is further removed from the labor market, explains Monica Jönsson.

– If you already have a specific candidate in mind, or if you would like help finding a suitable person for the role, we can assist with that as well.

So far, most users of Labour Market Entry Agreement have been small and medium-sized businesses, primarily within manufacturing, pharmacies, and healthcare and social care services.

– However, we see opportunities for many more companies and sectors to use this support, as around 130 agreements have now been signed, says Monica Jönsson.

Understand the Rules

Growth Support and Labour Market Entry Agreement are two examples of programs that can make it easier to take the step of hiring, but there are naturally others as well. Which option is most suitable will depend on both the company's situation and the circumstances of the job seeker.

Regardless of which support might be relevant to your business, it is wise to familiarize yourself with the applicable rules and conditions well before recruitment begins. Doing so can help you avoid unexpected costs and unfortunate misunderstandings. It also makes it easier to take the next step with confidence and give your business the opportunity to continue growing.