Workers compensation Switzerland

What types of workers compensation are required by Swiss law?

Hi there,

In Switzerland, workers compensation is provided through a number of separate channels. These channels are:

1. Occupational accident insurance. Employers must take out occupational accident insurance for their employees and cover the premiums. Employees who work for an employer more than 8 hours per week also receive non-occupational accident insurance through their employer, but must cover premiums for this insurance themselves. The accident insurance you get through your employer covers medical expenses and compensates loss of income (80% of your salary).

2. Paid sick leave. Employees who have worked for an employer more than 3 months are entitled to a certain amount of paid sick leave (up to 3 weeks during the first year of employment). The longer an employee is employed by an employer, the greater their paid sick leave entitlements. Paid sick leave entitlements vary between cantons. Employers are responsible to cover the cost of paid sick leave, though many take out paid sick leave insurance to cover this risk.

3. Paid maternity leave. Employed women are entitled to receive an income equal to 80% of their salary (max. CHF 196 per day) for up to 14 weeks after giving birth to a child. This income compensation is provided through a social insurance scheme which is financed by social security premiums.

4. Unemployment insurance. All employees earning at least CHF 500 per month must contribute to an unemployment insurance scheme. This insurance provides an income equal to a minimum of 70% of your salary (high salaries) and a maximum of 80% of your salary after you become unemployed. The length of time during which you receive this compensation depends on how long you were employed prior to being laid off.

5. Social security. Social security (pillar 1a) provides a disability pension after paid sick leave and accident insurance entitlements expire. Social security also provides a basic old-age pension when you reach retirement age and a basic pension to your spouse or dependent children when you pass away. The pensions paid out are based on the size and number of contributions made. Employees and employers share the cost of old-age social security contributions.

6. Occupational pension fund. All employees working 8 hours per week or more for the same employer must participate in an occupational pension fund (pillar 2a). Pension funds supplement the disability, old-age and survivors pension paid out by social security. Pensions are based on the size and number of contributions made. Employees and employers share the cost of pension fund contributions.

Compulsory Swiss health insurance covers medical expenses related to illness - including illness resulting from occupational hazards. This eliminates the need for employer-sponsored health insurance in most cases.

Best regards from Moneyguru

More on this topic:
Swiss compulsory health insurance comparison
Occupational accident insurance: A guide for employers