Switzerland's social insurance system is designed to provide financial coverage in the event of illness, accident, unemployment, retirement and much more. They play an important role in maintaining the well-being of Swiss residents. This system is based on principles of solidarity and shared responsibility, ensuring that each individual can benefit from appropriate help when they need it most. In this article, you'll find out more about the main social insurances and how they work. operation.
Retirement provision
Switzerland's old-age pension scheme is based on a "pay-as-you-go" system. three pillarsdesigned to provide financial security for retirees. This model makes it possible to combine diversified sources of income to maintain a high standard of living comfortable after retirement. Each of the three pillars plays a specific and complementary role, providing protection for complete to Swiss residents.
AVS (Old Age and Survivors' Insurance)
The AVS, or Old Age and Survivors' Insurance, is the first pillar of Switzerland's pension system. It is mandatory for all persons living, working or being independent in Switzerland. The financing of the AHV is based on a system of distributionThe OASI provides a basic pension to cover the costs of retirement. The OASI provides a basic pension designed to cover the costs of retirement. basic needs and protection for survivors in the event of the insured's death.
BVG (Occupational pension plan)
The second pillar is occupational benefit planning, or LPP (Loi sur la Prévoyance Professionnelle). It is also mandatory for employees whose income exceeds CHF 22,050although a BVG reform is underway. This pillar aims to complete benefits and enable retirees to maintain their previous standard of living.
LPP contributions are shared between employer and employee, and the accumulated funds are invested to guarantee a complementary income at retirement. Benefits are also provided in the event of death or disability.
3rd pillar
The third pillar consists of the individual benefitsoften referred to as the 3rd pillar. This pillar is optional and is divided into two types: Pillar 3a, which is tax-advantaged and can be taken out either in banking or insuranceThen there's pillar 3b, which is more flexible but doesn't enjoy the same tax benefits.
Pillar 3a allows policyholders to contribute voluntarily to a pension fund. pension accountThe Pillar 3b pillar offers other forms of savings and investments, offering greater scope for investment. Pillar 3b offers other forms of savings and investment, providing greater flexibility and security. freedom in terms of choice and use of funds. This third pillar is particularly important for self-employed people or for those wishing to strengthen their financial security in retirement.
AI (Invalidity Insurance)
Invalidity Insurance (IV) is designed to provide support to people who have become disabled due to illness, accident or congenital disability. DI is distinguished by its proactive approach, which is not limited to providing financial assistance, but also seeks to promote rehabilitation and reintegration into the job market.
DI benefits include:
- Disability pensions : Paid to policyholders who are confirmed to be unable to work, these pensions compensate for loss of income due to disability.
- Rehabilitation measures : Implementation of vocational rehabilitation programs, such as training, internships, or personalized support
- Aids for auxiliary means : Financing the purchase or adaptation of aids such as prostheses or wheelchairs.
- Early intervention measures : Rapid intervention after the onset of a risk of disability, to prevent deterioration in the insured's situation.
APG (Allowances for loss of earnings)
According toBernese scaleIf an employee is unable to work for a certain period of time, the employer is obliged to pay the employee's salary. This is where the APG comes in.
Allocations for loss of earnings (APG) are intended to compensate the loss of income suffered by policyholders in certain specific situations. This system of financial compensation is essential to ensure that people engaged in particular activities or facing specific life situations do not suffer from financial damage temporary.
APG services include:
- Military and civilian service : Persons performing military, civilian or civil protection service receive allowances to compensate for loss of earnings for the duration of their commitment.
- Maternity : Employed and self-employed women are entitled to maternity benefits for 14 weeks after childbirth. These allowances represent 80 % of the average income received before the birth of the child.
- Paternity : Since January 1, 2021, fathers have been entitled to two weeks' paid paternity leave. The APG pays paternity benefits equivalent to 80 % of the average wage earned before the child's birth.
- Adoption : In the event of the adoption of a child under the age of four, two weeks' adoption leave is granted, with benefits similar to those for paternity leave.
- Allowances for pregnancy-related illness : Pregnant women who can no longer work due to pregnancy-related complications can also benefit from APG compensation.
Unemployment insurance (AC)
The Unemployment insurance (AC) offers financial protection to workers in the event of involuntary loss of their job. job (unemployment). This system is designed to alleviate the economic consequences of unemployment and to facilitate return to the job market.
For benefit unemployment insurance benefits, the insured person must have paid contributions for a minimum period (generally 12 months in the last 2 years), be registered as a job seeker with the regional employment office (Office régional de placement - ORP), and be fit to work and available to accept suitable employment. THE AC accompanies jobseekers through a variety of initiatives such as training, internships, advice, etc.
The allowances proposed by the CA are as follows:
- Unemployment benefits : These benefits are granted to people who have lost their jobs through no fault of their own. These indemnities represent approximately 70 % to 80 % of the last salary received. They are paid for a fixed period.
- Compensation for reduced working hours (RHT) : In times of crisis or business slowdown (e.g. COVID-19), the CA can also intervene to compensate for lost wages for employees whose working hours have been reduced.
- Weather-related compensation : In some sectors, such as construction, CA also covers lost wages due to work interruptions caused by bad weather.
- Compensation in the event of insolvency : If an employer goes bankrupt and can no longer pay wages, CA steps in to cover unpaid wages up to a certain amount.
Health insurance (LAMal)
Health insurance (LAMal) guarantees access to medical basic medical care for all residents. The LAMal, or Federal Law on Health Insurance, governs this health insurance system.compulsory insurancewhich aims to protect individuals from the high financial costs of healthcare. In Switzerland, every resident on the territory, whether Swiss or foreign, is obliged to take out basic health insurance in the three months following its arrival or birth.
Policyholders pay a monthly premium to their health insurer, the amount of which varies according to the insurer, the region of residence, the age of the insured, and the amount of the premium. insurance model chosen. Premiums are not dependent on income, but on the subsidies can be granted by the State to help people on modest incomes cover costs.
Care covered by basic insurance includes:
- GP and specialist consultations
- General ward hospitalization
- Prescription drugs on the list of reimbursable drugs
- Certain dental treatments (accidents, serious illnesses)
- Preventive examinations (screening for certain diseases)
- Maternity care (before and after childbirth)
Accident insurance (UVG)
Accident insurance (LAA) is designed to protect workers against the financial consequences of accidents. accidentsThese include all types of accident, whether occurring in the workplace (occupational) or away from the workplace (non-occupational), as well as occupational illnesses. The LAA, or Federal Law on Accident Insurance, governs this insurance system.
Accident insurance is mandatory for all employees in Switzerland. L'employer is obliged to take out insurance cover for its employees with a recognized accident insurance fund, such as SUVA or other private insurers.
LAA/UVG benefits include:
- Medical care : Coverage of treatment costs, including hospital care, medical consultations, medication and necessary therapies.
- Daily benefits : In the event of incapacity for work due to an accident, the insured receives daily benefits generally representing 80 % of salary from the third day following the accident.
- Disability pension : If the accident results in partial or total permanent disability, the insured may receive a disability pension proportional to the degree of disability.
- Compensation for injury : If the accident results in serious bodily injury (such as amputation or loss of function), the insured may receive a one-off compensation for loss of integrity.
- Survivors' pension : In the event of death as a result of an accident, surviving relatives (spouse, children) can receive pensions to compensate for the financial loss.
Maternity insurance
Maternity insurance in Switzerland is designed to provide financial support to employed women or independent during the period surrounding the birth of their child. It guarantees property to allow mothers to concentrate on their family role without immediate financial pressure.
Maternity allowance is paid for the following periods 14 weeks (98 days) after childbirth. If the mother returns to work before the end of this period, payments cease. On the other hand, if she is unable to return to work for medical reasons related to maternity, she continues to receive the allowance.
The maternity allowance corresponds to 80 % of average income obtained before birth, with a ceiling of 220 CHF per day. This amount is intended to ensure that mothers have sufficient income to support themselves and their newborn during the first weeks of the child's life.
Family allowances
The purpose of family allowances in Switzerland is to provide financial support for families in need.education and maintenance of their children. These allowances are intended to cover part of the cost of raising children and to ensure a decent standard of living for families.
Family allowances are paid to people who work in the following fields gainful activity in Switzerland, whether employees or independent. People not in gainful employment can also receive family allowances if their income is below a certain threshold, which varies from canton to canton.
Allowances are paid for each child up to the age of 16 years old. If the child is still in training (apprenticeship, studies), benefits continue to be paid until the age of 25 years old.
Frequently Asked Questions
What are the social security benefits for cross-border commuters in Switzerland?
In Switzerland, cross-border commuters contribute to almost all social insurance schemes, with the exception of LAMal if they choose to be insured in France (the choice must be made within 3 months).
However, cross-border commuters will receive unemployment benefits in accordance with the rules in force in their country of residence. country of residence and will therefore not receive Swiss benefits.
Which social security schemes are compulsory in Switzerland?
In Switzerland, the compulsory social insurances are :
- Old-age and survivors' insurance (AVS)
- Disability insurance (AI)
- Loss of earnings insurance (APG)
- Unemployment insurance (AC)
- Health insurance (LAMal)
- Accident insurance (UVG)
- Occupational Benefits (BV)
Where can I find the social insurance summary tables?
The tables can be viewed on the AHV/IV Information Center.
