The proposal means that the income limit will be raised from approximately SEK 13,000 to SEK 26,560 for those who immigrate to Sweden for work.
This is some way from the agreed increase, which according to the Tidö agreement would be in line with the median wage, but is still large enough to have negative consequences for the Swedish labor market, says the Confederation of Swedish Enterprise's CEO Karin Johansson.
"Of course, we are not in favour of this," she says.
"So it's no longer the social partners who set the salary, it's the government.
"Will set a new kind of minimum wage"
The Confederation of Swedish Enterprise represents 60,000 companies and 48 industries and employers' organisations. According to Karin Johansson, raising it to the proposed level risks leading to a skills shortage in Sweden.
"This is de facto a departure from the model that exists in the labour market today. But above all, it is about companies' ability to recruit skills. We do not turn a blind eye to working life crime, but there are other tools to work with," she says.
Johansson believes that there is also a risk that employers will not be able to bear increased costs.
"Imagine a workplace where you need to have access to staff who come through this regulation. But those who are Swedish employees are paid a lower salary than those who have immigrated to work. It is clear that it will set a new kind of minimum wage for this type of workplace.
Muf: "Stupidest proposal"
Moderate Youth League chairman Douglas Thor is harsh in his criticism of the M-led government's proposal, which has divided the Moderates since it was presented at the party conference.
"We think the government has done very well, but this is probably the stupidest proposal they have presented so far. If you think that the jobs you are going to take away are unemployed in Sweden, then you think wrong, he says.