The increase will see the annual budget for sick pay rising from SEK 22.7 billion to SEK 23.9. In 2014 the bill will grow by SEK 2.8 billion to about SEK 26 billion.
The number of Swedes claiming sickness benefits has risen steadily for three years, but is still far from the peak of the early 2000s.
Larsson says the forecast was revised due to new trends in illness.
“Stress related complaints are increasing faster than any other mental illness,” he told Swedish Radio.
“Mental health issues can lead to long periods off sick – for example bipolar conditions and depression are increasing.”