The new start job program was introduced in 2007 and is meant to encourage employers to hire long-term unemployed and newly-landed immigrants.
The employment agency pays up to two-thirds of the salary for the new start job. Labor Minister Ylva Johansson told newspaper Dagens Nyheter Tuesday that she is planning on changing the rules in order to toughen the requirements on employers for subsidized jobs.
Some companies participating in the new start jobs program have been giving higher than normal salaries for the jobs in order to receive a higher subsidy from the employment agency.
"There has been no ceiling for salaries, certain companies have received subsidies for salaries of up to SEK 50,000 per month, which is completely crazy," Johansson said.
Johansson says the salary ceiling will now be set at SEK 22,000 per month for new start jobs and that salaries will follow collective bargaining agreements and have the same conditions as other support from the employment agency.