A wide range of benefits, contributions and taxes of the social welfare and tax systems are tied to the price base amount. This means that they have to be listed each year in line with the increase in prices. For example, the student’s financial aid, the ceiling for the sickness and maternity benefits, lump-sum allowance, many school, and the earned income tax credit.
the increase in the base amount, as determined by the change in the consumer price index, the CPI, and an increase in the next year based on the increase in prices between June 2018 and June 2019.
the CPI is calculated by Statistics Sweden (SCB) every month, with the help of a basket of goods and services are weighted in proportion to the amount of money to the Swedish households spend on them.
and it weighed about twice as much as compared to other heavy-duty items, such as food, transportation, recreation, and culture. The most listed items account for about one-third of the basket to which the price increases were measured.
As the price rises, increased price base amount, and then increase the remuneration, fees and taxes. In the last few years, we have had low inflation rates and, therefore, has a base amount has not been raised as much as the rate of inflation was higher.
But even though the increases have been small, there have been been increases, for example, in the welfare system. This is due to the increases occurring automatically and on the basis of the connection to the base amount.
for example, underhållsstödet, and a cash register. It requires a political decision, in order to increase the benefits and income thresholds.
Underhållsstödet remained stable at 1.173 per month from 1997 to 2006, when it was raised to one hundred, to 1.273 per month. In the autumn of 2015 were raised to 1. 573 Swedish kronor, and by 2018 and 2019, the support was increased so that it is 1.723 per child, per month.
Compensation from the fund has also lagged behind. This is due to the ceiling on the maximum compensation is low in the pacific for many years, at the same time, as wages rose and more people got on the roof. The recent rise in the highest compensation was in 2015.
the bottom line is that if they are automatic increases by the base amount is small at the moment so it will be at least one event. In other cases, it is necessary for both the existence of a political will and a political majority for a change.
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