Employer`s guide to social insurance

Transcrição

Employer’s guide to social insurance
2016 edition
Contents
Introduction .................................................................... 3
Swiss Federal Law on Old Age and Survivors’
Insurance (AHVG)............................................................. 4
Swiss Federal Law on Disability Insurance (IVG) ................. 5
Swiss Federal Law on Compensation for Loss of
Earnings for Persons on Military Service or Maternity
Leave (Compensation for Loss of Earnings Act, EOG) .......... 6
Swiss Federal Law on Occupational Retirement,
Survivors’ and Disability Pension Plans (BVG).................... 7
Swiss Federal Law on Compulsory Unemployment
Insurance and Benefits on Insolvency (AVIG) ................... 10
Swiss Federal Law on Military Insurance (MVG) ................ 12
Swiss Federal Law on Accident Insurance (UVG) ............... 14
Swiss Federal Law on Supplementary Benefits to
Old-Age, Survivors’ and Disability Insurance (ELG) ........... 18
Swiss Federal Law on Health Insurance (KVG) .................. 20
Overview
Benefits ........................................................................ 21
Practical guide .............................................................. 27
Introduction
Social insurance – a clear and
concise overview
Social insurance is a complex issue that demands expertise, responsibility and detailed knowledge from you as an
employer. This brochure aims to help you tackle this challenge. It provides you with a concise, easily digestible overview of the Swiss social insurance system from the employer’s perspective.
For you, security is about much more than safety regulations
or simple insurance benefits. Security comes from knowing that you have a capable partner that you can rely on at all
times. In this regard have a lot to offer as an insurance partner
with many years of experience. As a major provider of corporate insurance, we have dealt with the ins and outs of company
pension provision for decades and we constantly monitor legislative and societal changes. Our products are thus promptly
adjusted to changing social needs and statutory requirements.
We can work with you to develop a comprehensive, cost-effective and appropriate insurance solution for your company’s
needs, for your security and for the benefit and wellbeing of
your employees. And we also have an «Employee’s guide to
social insurance», which offers employees valuable advice and
information.
Our Baloise customer advisers can help you with all
your professional and personal insurance needs. They
have the extensive training and expertise needed to
answer your insurance questions properly or, if necessary, put you in touch with one of our specialists. If
your company wants to achieve more with less risk,
simply call our office nearest to you.
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4
Swiss Federal Law on
Old Age and Survivors’ Insurance (AHVG)
Old Age and Survivors’ Insurance (AHVG)
of 20 December 1946, in force since 1 January 1948
Purpose
AHV old-age and survivors’ insurance financially assists the
insured person and his or her family members by replacing
some of the income lost as a result of retirement or death.
Pension benefits
(as a percentage of the maximum single retirement pension)
Maximum single retirement pension
(men: 65 years, women: 64 years)
If there are no gaps in contributory
years: from CHF 1175.–, up to
CHF 2350.– per month
100%
Total of both pensions for spouses or
registered partners
Up to 150% of the
maximum single
retirement pension
Children’s pension
(men: 65 years, women: 64 years)
40%
Widower’s pension
(if there are children less than 18 years
old)
80%
Widow’s pension
(if there are children or the insured
person is over 45 years of age and was
married for at least 5 years)
80%
Orphan’s pension
Either father or mother deceased
Both father and mother deceased
40%
max. 60%
Insured persons (also applies to the IV)
This insurance is compulsory for everyone whose residence or
place of work is in Switzerland, or who is subject to the Swiss
social security system as a result of the bilateral agreements
with the EU. Persons who are employed and paid by a Swiss
employer but who work abroad can maintain their insurance
cover by mutual agreement with their employer. All EU and
EFTA citizens, as well as Swiss citizens residing outside the
EU and EFTA, can take out this insurance voluntarily, if, in
the immediately preceding period, they had been compulsorily insured for at least 5 years without interruption.
Contributions (also applies to the IV and EO)
Insured persons are liable for contributions as long as they are
gainfully employed and provided their annual salary from one
employer exceeds CHF 2300.–. For non-gainfully employed
persons, the contribution liability commences on 1 January after they reach 20 years of age. Non-gainfully employed
spouses or registered partners are exempted from the contribution liability if the spouse or registered partner has paid
contributions worth at least twice the minimum contribution
(i. e. 2 × CHF 478.– per year, incl. IV/EO). Contributions are
levied based on total income. The employee and employer each
pay half of the contributions.
Eligibility (pensions only)
The following groups are eligible: Swiss citizens, refugees and
stateless persons pursuant to federal legislation, and foreigners, provided they are resident in Switzerland. The residency
requirement no longer applies to EU and EFTA citizens.
Benefit period
Children’s and orphans’ pensions are paid until 18 years of age.
Children in education or training are entitled to benefits until
they complete their studies, or until they turn 25 years of age,
whichever comes first. Widows’ and widowers’ pensions cease
upon remarriage. Widowers’ pensions also cease when the
widower’s youngest child turns 18.
Procedure in the case of divorce, legal separation or
dissolution of a registered partnership
If a married couple divorces, each spouse receives half of the
combined income earned during the marriage, including any
educational and care allowances (this does not cover the year
of marriage and the year of divorce), credited to his/her individual account. The divorce settlement must include this mandatory splitting of AHV credits. If the joint household is legally
dissolved, then the ceiling for the shared spouses’ pension of
150 per cent of the maximum single AHV retirement pension
no longer applies. The same procedure is applied in the case of
dissolution of a registered partnership.
Disability Insurance (IVG)
Disability Insurance (IVG)
of 19 June 1959, in force since 1 January 1960
Purpose
The IV’s most important principle is «integration first, pension second». A disability pension is only paid if the disabled
person can no longer be integrated into the labour market at
all or can only be partially integrated. Revisions to pensions
also aim at reintegrating IV pension recipients into working
life if possible.
Insured persons and contributions
(cf. AHV)
What does disability mean?
Disability is defined as a presumed permanent or long-term
incapacity for work due to a physical, mental or psychological health impairment caused by a congenital disorder, illness
or accident.
Pension benefits
(as a percentage of the maximum single retirement pension)
Maximum single disability pension
100%
Total of both pensions for spouses or
registered partners
(if both spouses or registered partners
are disabled)
Up to 150% of the
maximum single
retirement pension
Single children’s pension
(if the father or mother is disabled)
40%
Double children’s pension
(if both parents are disabled)
60%
Benefits
IV benefits mainly consist of occupational integration measures and pensions.
Occupational integration measures
The integration measures include:
→ Medical treatment
→ Occupational programmes (career counselling, first-time
vocational training, retraining and job placement)
→ Integration measures in preparation for workplace entry
→ The provision of physical aids
→ Daily disability allowances (80 per cent of the last earnings
but not more than 80 per cent of CHF 148 200.– per year).
Insured persons, including pension recipients who are disabled or imminently threatened by disability, are entitled to
occupational integration measures if the measures are necessary and appropriate for restoring, improving or maintaining
the insured person’s capacity for work.
Pensions
The level of the disability pension equals the AHV retirement
pension and depends on the established degree of disability:
Degree of disability
Pension entitlement
(as a fraction of a full pension)
At least 40%
One quarter
At least 50%
One half
At least 60%
Three quarters
At least 70%
Full pension
Insured persons are entitled to draw a disability pension if
their incapacity for work is permanently rated 40 per cent
or more, or if their incapacity for work averaged 40 per cent
over one year without any significant interruptions and they
remain unable to work.
Benefit period
Disability pensions are paid out when the beneficiaries turn
18 years of age, but no earlier than six months after the entitlement to benefits has been established. The entitlement lapses
if the disability ceases (in some cases only after completion of
the rehabilitation and workplace reintegration measures), the
beneficiary dies or the AHV pension begins. Children’s pensions are paid until 18 years of age. Children who have not
yet completed their college education or vocational training
are entitled to receive benefits until they complete their education/training, or until they turn 25 years of age, whichever
comes first.
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Compensation for Loss of Earnings for Persons on Military Service or Maternity Leave
(Compensation for Loss of Earnings Act, EOG)
Swiss Federal Law on Compensation for Loss of Earnings for Persons on Military Service or Maternity
Leave (Compensation for Loss of Earnings Act, EOG)
of 25 September 1952, in force since 1 January 1953
Purpose
The Compensation for Loss of Earnings Act provides reasonable compensation for salary and earnings lost due to participation in military, civilian and other services described in the
Act. The Act also establishes the duration and amount of the
compensation for loss of earnings paid to working mothers on
maternity leave.
Contributions
The following are obligated to pay contributions: employees
and employers liable for AHV contributions, who each pay
half the contribution of 0,45 per cent of the income from gainful employment.
Benefits
Minimum and maximum amount in CHF per day
Basic compensation, regardless of
marital status:
→ In general
→ During military promotion service
→ For recruits and those liable for
enlistment without children
62.–/196.–
111.–/196.–
62.–
Children’s allowance:
→ Per child
20.–
Maximum total compensation
245.–*
Care cost allowance
Up to 67.–
Business cost allowance
67.–
* This ceiling applies even if the total of basic compensation and
children’s allowances exceeds CHF 245.–.
Compensation for loss of earnings for persons on military/
civilian service
Eligible beneficiaries
The eligible beneficiaries are persons residing in or outside
Switzerland who are:
→ serving in the Swiss army or the Swiss Red Cross (for every
paid day of service);
→ serving in the civilian service (for every creditable day of
service);
→ serving in the civil defence service (for every day for which
they are paid);
→ attending federal and cantonal coaching classes for the
«Jugend+Sport» summer sports camps or youth marksmanship courses (for every whole day of the course);
→ enlisted for the recruiting days.
Benefits
The total compensation consists of the basic compensation and
the children’s allowances. Allowances for care costs and business costs are paid over and above the total compensation and
are never reduced.
Compensation for loss of earnings during maternity leave
Women in gainful employment are entitled to 14 weeks of paid
maternity leave, provided they were compulsorily insured in
accordance with the AHVG for the nine months prior to the
birth and were in paid employment for at least five months
during this period. The maternity leave compensation is paid
through the employer as a daily allowance. The daily allowance amounts to 80 per cent of the mother’s average earnings
from gainful employment before giving birth. The allowance
is capped at CHF 196.– per day.
Occupational Retirement, Survivors’ and Disability Pension Plans (BVG)
Occupational Retirement, Survivors’
and Disability Pension Plans (BVG)
Purpose
AHV/IV (first pillar) and BVG (second pillar) benefits are
intended to enable the elderly, disabled and survivors to maintain their accustomed standard of living in an appropriate
manner. The minimum statutory benefits are described below.
Pension funds may offer additional benefits.
Insured persons
Compulsory insurance
Employees who receive more than CHF 21 150.– in annual salary from an employer are insured against death and disability starting on the first day of January after they turn 17 years
of age, and are insured against old age starting on the first day
of January after they turn 24 years of age. Secondary employment activities are not eligible for compulsory BVG cover if
the insured person is already insured in his/her main occupation under a compulsory occupational pension plan or his/her
main occupation is a self-employed activity.
Retirement assets consist of:
→
→
→
→
→
Retirement credits
Portable benefits transferred into the fund
Additional voluntary contributions
Divorce settlement payments received
Interest earned on all the amounts above
Retirement credits are calculated each year as a percentage of
the pensionable salary. The rates are:
Age for women/men
Rate as a percentage of
pensionable salary
25–34 35–44 45–54 55–64/65
7%
10%
15%
18%
Voluntary insurance for self-employed persons
Self-employed persons with employees can insure themselves
with their employees’ pension fund, their trade association’s
pension fund or the Substitute Occupational Benefit Institution (national substitute pension scheme). Self-employed persons who do not have employees can choose between the last
two options.
Pensionable salary
The insurance covers annual salaries between CHF 24 675.–
and CHF 84 600.–. The maximum salary that can be insured
is CHF 59 925.–, and is known as the pensionable (or coordinated) salary. A minimum amount of CHF 3525.– is insured
for annual salaries between CHF 21 150.– and CHF 28 200.–. If
an insured person is partially disabled according to IV criteria,
the lower and upper limits (CHF 21 150.– and CHF 59 925.–) are
reduced by a fraction of the full disability pension in proportion to the degree of disability.
Contributions
The employer must pay at least half of the total contributions
for all staff. The contributions consist of the retirement credits, the risk premium and the additional costs that must be levied by law (adjustments for inflation and contributions to the
BVG Security Fund). The employer transfers the full contributions to the pension fund.
Benefits
Retirement benefits
→ Retirement pension
Entitlement to an AHV retirement pension begins at the
age of 64 (women) or 65 (men). The Pension Regulations of
the individual pension fund may allow for continued insurance cover until the age of 70. The retirement pension is
calculated as a percentage of the retirement assets that the
insured person has accumulated up to retirement age. On
retirement at 64/65, the conversion rate applied to assets
under the compulsory scheme is 6.8 per cent. Pension funds
may apply different conversion rates to the non-compulsory
components of the retirement assets.
→ Pensioners’ children’s pensions
If insured persons are entitled to a retirement pension, then
they are also entitled to pensioners’ children’s pensions for
every child that could claim an orphan’s pension in the
event of their death. Pensioners’ children’s pensions are
equal to 20 per cent of the retirement pension.
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→ Lump-sum settlements
Insured persons can request that a quarter of their retirement assets be paid out as a single lump-sum settlement. If
permitted by the individual pension fund’s Pension Regulations, insured persons can also request a full lump-sum settlement instead of a retirement pension. Benefits resulting
from voluntary additional contributions may not be drawn
as a lump-sum payment for a period of three years.
Disability benefits
→ Disability pension
Disabled persons are entitled to a disability pension, provided they are at least 40 per cent disabled according to IV
criteria and were insured on the date of being incapacitated
for work due to the same reason that subsequently lead to
the disability. The entitlement ceases when the insured person dies or is no longer disabled.
Amount of disability pension
Disability pensions are calculated based on the same conversion rate that is used to calculate the retirement pensions.
The underlying retirement assets consist of:
→ the retirement assets accumulated by the insured person
up to the date he or she became entitled to the disability
pension;
→ the total non-interest-bearing retirement credits for the
years remaining until retirement age.
Often, however, the disability pension is defined as a percentage of the pensionable salary.
The pension fund can reduce the disability pension if the total
benefits and other qualifying income exceed 90 per cent of
the estimated loss in earnings.
→ Disabled persons’ children’s pension
If insured persons are entitled to a disability pension, then
they are also entitled to a disabled person’s children’s pension for every child that could claim an orphan’s pension
in the event of their death. The disabled person’s children’s
pension is 20 per cent of the disability pension.
Entitlement to children’s pensions
The children’s pension entitlement ceases when the child dies
or reaches 18 years of age. However, the entitlement remains
in force until 25 years of age for children
→ until they complete their initial education or training,
→ until they are capable of working, provided they are at least
70 per cent disabled.
Survivors’ benefits
→ Widow’s or widower’s pension
The surviving spouse is entitled to a widow’s or widower’s
pension if, at the date of the spouse’s death, he or she:
– is responsible for the maintenance of one or more children; or
– is at least 45 years of age and the marriage lasted at least
five years.
If the surviving spouse fails to meet any of these conditions, he or she is still entitled to a one-off settlement equal
to three annual pension payments. The surviving spouse is
entitled to the widow’s or widower’s pension from the date
of the insured person’s death but no earlier than the date
when full salary payments are stopped. The entitlement
ceases when the widow or widower remarries or dies.
Upon the insured person’s death, the widow’s or widower’s pension is equal to 60 per cent of the full disability pension that the insured could have claimed. If an insured person who is drawing a retirement or disability pension dies,
then the widow’s or widower’s pension is equal to 60 per
cent of the last retirement or disability pension paid. Surviving registered partners have the same legal status as widows or widowers.
→ Orphan’s pension
Children of a deceased insured person are entitled to
orphans’ pensions; foster children can only claim a pension if the deceased person was responsible for their maintenance. The orphan’s pension is equal to 20 per cent of the
full disability pension.
→ Pensions for divorced spouses
Divorced spouses are treated the same way as widows or
widowers after the death of their former spouse as long as
the marriage lasted at least 10 years and the divorced spouse
was awarded a pension or a lump-sum settlement in place of
a life-time pension in the divorce settlement. However, the
pension can be reduced by the amount by which the pension
and benefits from other forms of insurance – in particular
the AHV and IV – exceed the amount awarded under the
divorce settlement. Former registered partners are treated
the same as divorced spouses after the death of their former
registered partner.
→ Lump-sum settlements
If permitted under the Pension Regulations, the widow or
widower can request a lump-sum settlement instead of a
widow’s or widower’s pension. The surviving spouse must
submit the declaration requesting the lump-sum settlement
to the pension fund before the first pension payment. The
same applies to surviving registered partners.
Additional statutory costs
Adjustment for inflation
Survivors’ and disability pensions that have been paid for a
period of more than three years are adjusted for inflation until
the age of 65 for men or 64 for women.
BVG Security Fund
The BVG Security Fund (LOB Guarantee Fund) pays subsidies to pension funds with an unfavourable age structure (an
average retirement credit of more than 14 per cent) and covers
expenses incurred by compensation offices. It guarantees the
statutory benefits of insolvent pension funds up to one-and-ahalf times the upper BVG limit (CHF 126 900.–).
Contributions to the Security Fund include:
→ 0,08 per cent of the total pensionable salaries of all insured
persons paying retirement pension contributions (to cover
subsidies for funds with an unfavourable age structure);
→ 0,005 per cent of the regulatory withdrawal benefits for all
insured persons as at the 31 December and the same percentage of ten times the total amount of pensions reported
in the operating statement (to cover insolvency and other
benefits).
Portable benefits
Employees with a BVG retirement pension plan who change
their employer receive a withdrawal benefit (portable benefit) from their former employer’s pension fund. If the employees remain covered under the BVG at their new company, they
must transfer their withdrawal benefits into the new pension
fund. If they are no longer covered under the BVG, they can
transfer the withdrawal benefits to a portable benefits account
or a portable benefits policy. Employees who permanently
change their place of residence from Switzerland to an EU or
EFTA country can receive the non-compulsory part of the
withdrawal benefits as a cash payment. If employees establish
their place of residence outside the EU or EFTA, they can have
their entire withdrawal benefits paid out in cash.
Promotion of home ownership out of pension funds
Insured persons can withdraw or pledge occupational pension
fund assets to finance the purchase of a residential property for
personal use up to three years before they become entitled to
a retirement pension, whereby the available assets are not limited to the compulsory BVG minimum. However, additional
voluntary contribution amounts may not be used for the purposes of financing home ownership for a period of three years
after the voluntary contribution was made. Withdrawals and
pledges are governed by the BVG and the statutory provisions
for the promotion home ownership out of pension funds.
Compulsory insurance for unemployed persons
Unemployed persons who receive a daily allowance of at least
CHF 81.20 are insured with the Substitute Occupational Benefit Institution (the national substitute pension plan) for the
minimum BVG benefits in the event of death and disability.
The unemployment office deducts the insured person’s contribution from his/her daily allowance and transfers it to the
Substitute Occupational Benefit Institution along with the
employer’s contribution, which the unemployment office pays.
Divorce
If spouses divorce before an insured event occurs, the withdrawal benefits saved up during the period of marriage are
divided equally. Additional voluntary contributions classified
by law as own property under the statutory matrimonial property regime are not subject to splitting. If one or both spouses
experience an insured event before the divorce, reasonable
compensation is owed directly by the spouse instead of dividing the withdrawal benefits. The rules for divorces also apply,
mutatis mutandis, to legal dissolutions of registered partnerships.
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Compulsory Unemployment Insurance and Benefits on Insolvency (AVIG)
Compulsory Unemployment Insurance and Benefits
on Insolvency (AVIG)
Purpose
Unemployment insurance provides reasonable loss of earnings compensation in the case of unemployment and provides
financial benefits to finance measures to prevent and combat
unemployment.
Insured persons
This insurance covers employees who are compulsorily insured
with the AHV and pay AHV contributions on income from
employment. Family members who work on a family farm
are not compulsorily insured, but are treated as self-employed
farmers. Self-employed persons cannot take out unemployment insurance.
Types of benefits
→
→
→
→
→
Unemployment benefits
Short-time work allowance
Inclement weather allowance
Allowance in the case of employer insolvency
Financial benefits for labour market measures
Contributions
Insurance contributions depend on the AHV salary and are
capped at the maximum pensionable earnings subject to
compulsory accident insurance and converted into months
(CHF 148 200.– per year or CHF 12 350.– per month). The
contribution rate is set at 2,2 per cent and the employee and
employer each pay half the contribution. If the employer is
not required to pay contributions, the employee pays the full
amount. In addition, until the structural debt of the unemployment insurance is repaid, a jointly financed solidarity contribution of 1 per cent is charged on the salary component from
CHF 148 200.– and above.
Benefits
Unemployment benefit
Insured persons are entitled to receive an unemployment benefit if they meet all of the following criteria:
→ are fully or partially unemployed;
→ have suffered a qualifying loss of work;
→ reside in Switzerland;
→ have completed their compulsory education, have not
reached the AHV retirement age and are not drawing an
AHV retirement pension;
→ have completed the contributory period or are exempted
from completing it;
→ are employable; and
→ fulfil the employment office’s requirements.
Contributory periods spent in an EU/EFTA country also count
towards the completion of the contributory period for Swiss
and EU/EFTA citizens employed under permanent or multiyear contracts.
Insured persons must look for new employment immediately after receiving notice of termination – that is, during the
notice period – and during the entire period of unemployment. They must regularly show copies of applications, notes
of verbal applications, etc., to the employment office as proof
of their efforts.
Short-time work allowance
Employees whose regular working hours are reduced or whose
work is discontinued entirely are entitled to receive a shorttime work allowance if:
→ they are liable for insurance contributions;
→ the loss of work qualifies;
→ the employment relationship has not been terminated;
→ the loss of work is presumed to be temporary and a shorttime work programme is expected to save jobs.
The introduction of short-time work requires the verification
and approval of the employment office’s cantonal office.
Compulsory Unemployment Insurance and Benefits on Insolvency (AVIG)
Inclement weather allowance
The inclement weather allowance is only paid in certain industry sectors where losses of income due to meteorological conditions are common (mainly in construction, civil engineering and related trades).
Employees are entitled to an allowance in case of employer
insolvency if:
→ they have earnings claims against their employer when the
employer files for bankruptcy; or
→ they have filed a seizure request for earnings claims against
their employer.
Labour market measures
Labour market measures (e. g. further training) are intended
to help integrate insured persons into the workplace who are
harder to place due to the state of the labour market.
Amount of benefits
Unemployment
A full daily allowance is 80 per cent of the pensionable earnings. A daily allowance of 70 per cent of the pensionable earnings is paid to insured persons who are less than 40 per cent
disabled, are not obligated to pay maintenance to children
under 25 years of age and have a full daily allowance in excess
of CHF 140.–.
Entitlement to the daily allowance is limited to salary components of up to CHF 12 350.– per month or CHF 148 200.– per
year. Insured persons can claim five daily allowances per week.
In addition to the daily allowance, claimants receive a supplement equal to the lost children’s allowances. AHV contributions must be paid from the daily allowances in order to avoid
AHV contribution gaps. At most, two thirds of the premium
for compulsory non-occupational accident insurance must
also be paid. Contributions for the compulsory occupational
pension are also deducted from the daily allowance, which
ensures the provision of insurance cover in the event of disability and death. The unemployment office takes all the necessary steps in all cases.
For persons who are not obligated to pay maintenance to
children under 25, and have pensionable earnings of at least
CHF 3000.– per month, no daily allowance is paid for the first
5, 10, 15 or 20 days, depending on the amount of the pensionable earnings. If the insured person is obligated to pay child
maintenance, no five-day waiting period applies, provided the
pensionable earnings does not exceed CHF 5000.– per month.
Short-time work and inclement weather allowance
The short-time work and inclement weather allowances are
each equal to 80 per cent of the qualifying loss of earnings.
The insolvency allowance covers salary claims from the last
four months prior to the declaration of bankruptcy or the seizure request, but only up to CHF 12 350.– per month.
Labour market measures
The insurance pays daily allowances to insured persons for the
days they spend planning their self-employment or participating
in a training or employment programme as per a decision made
by the competent authority.
Benefit period and reference period
The number of daily unemployment allowances to which an
insured person is entitled depends on the person’s age and a
contributory period (see box) of at least 12 months during a
two-year reference period. The reference period commences
two years before the date when all the requirements for receiving daily allowances are met for the first time (generally the
first day of registered unemployment).
Entitlement to unemployment benefits
(ranked by age and contributory period)
Contributory period of at least 12 months
Up to 260 daily
allowances
Up to 400 daily
allowances
and at least 55 years of age
Up to 520 daily
allowances
and drawing an IV disability pension of at
least 40 per cent
Up to 520 daily
allowances
If unemployed during the four years prior
to reaching AHV retirement age
120 additional daily
allowances
Persons exempted from the contributory
period
Up to 90 daily
allowances
Persons up to 25 years of age, without
children and a contributory period of at
least 12 months
Up to 200 daily
allowances
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Military Insurance (MVG)
Purpose
The military insurance scheme provides people with benefits
due to an incapacity for work or earnings incapacity occurring while they are serving in the security and peace services
(army, civil defence, civilian service, humanitarian aid, etc.).
This is a comprehensive assumption of risk to ensure national/
social security.
Insured persons
Insurance cover is provided specifically to:
→ members of the army and civil defence who are serving
compulsorily or voluntarily;
→ people rendering civilian service;
→ members of the Instruction Corps, the Military Police and
the Swiss Humanitarian Aid Unit;
→ participants in recruitments and inspections, off-duty firearms training, voluntary off-duty military activities or military sports activities, and peacekeeping activities of Switzerland’s Good Offices.
Contributions
The insurance is exempted from contributions. The Swiss Federal Government bears all costs. The maximum pensionable
earnings are CHF 150 918.–.
Insurance term
Insurance cover is provided for the entire duration of the service or training. The insurance also covers the journey to and
from the service/training site as long as it is completed within
a reasonable period. The insurance is suspended while the
insured person remains compulsorily covered by the UVG
insurance and in gainful employment.
The most important benefits
Daily allowances
Insured persons who are incapacitated for work due to a health
impairment are entitled to a daily allowance. In the case of
persons who are fully incapacitated for work, the daily allowance is equal to 80 per cent of the pensionable earnings. If they
are partially unable to work, the daily allowance is reduced
accordingly.
Occupational integration measures
Insured persons who are disabled or imminently threatened
by disability are entitled to occupational integration measures if the measures are necessary and appropriate for maintaining or improving the insured person’s social integration
or remaining capacity for work. As a rule, the occupational
integration measures are provided in Switzerland. Apart from
medical arrangements and the provision of physical aids, the
integration measures consist of arranging and financing occupational and social integration programmes as well as providing compensation for any loss of earnings for the duration of
the measures.
Disability pension
An annual disability pension of 80 per cent of the pensionable earnings is paid in case of a full disability. The pension is
reduced accordingly in the case of a partial disability. The pensions are adjusted to salary trends and inflation by the Federal Council.
Survivors’ pensions
The spouse, children, parents and divorced spouse of a deceased
insured person may be entitled to a survivors’ pension depending on the individual circumstances. The pensions are adjusted
to salary trends and inflation by the Federal Council.
Survivors’ pensions
(as a percentage of the pensionable earnings)
Spouse
40%
Divorced spouse, maintenance no longer
payable
Up to 20%
Half orphan
15%
Full orphan
25%
Parents: only if a need is recognised
Up to 20%
Compensation for self-employed persons
If self-employed persons suffer an additional loss from ongoing fixed operating costs due to the structure of their business
while they are incapacitated for work, then this loss is reasonably compensated provided it is deemed unavoidable despite the
diligent management of the business. Self-employed persons
may receive additional compensation payments if their health
impairment prevents them from maintaining their business
out of the daily allowance and any existing compensation that
they may be receiving. The additional compensation payments
and the regular compensation must not, however, jointly
exceed double the maximum qualifying annual earnings.
Additional benefits
→ Medical treatment (medical care)
→ Assumption of travel and rescue costs
→ Compensation of funeral costs
→ Allowances for home care, spa treatments and long-term
care
→ Physical aids
→ Settlements and damage payments
→ Retirement pensions for disabled insured persons
→ Pensions for physical and mental impairment
→ Cover for property damage.
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Accident Insurance (UVG)
of 20 March 1981, in force since 1 January 1984
Insurer
Compulsory and voluntary accident insurance is provided by:
→ private insurance companies and public accident insurance
funds;
→ the Swiss National Accident Insurance Fund (Suva) for the
companies for which it is responsible;
→ recognised health insurance funds, although the pensions
have to be provided by a private insurer in this case. Health
insurance fund must therefore agree to partner with private
insurance companies for this purpose. Except for persons
insured through Suva, employees have a right to participate in
selecting the insurer.
Purpose
Accident insurance provides reasonable loss of earnings compensation for income lost due to occupational accidents, occupational illnesses or non-occupational accidents. Accident
insurers also take action to prevent occupational accidents and
illnesses at companies.
Insured persons
Compulsory insurance
This insurance is compulsory for all employees working in
Switzerland. This includes:
→ farm workers;
→ household domestic staff;
→ cleaning ladies in private households;
→ people working from home;
→ apprentices, unpaid interns, trainees and career entrants
working for an employer in order to explore a prospective
career, for the duration of this activity (workplace trial
trainees);
→ people working in training or sheltered workshops;
→ people in secondary employment who pay contributions to
the AHV for this activity;
→ the employer’s family members working in the employer’s
business if they receive earnings in cash and/or pay contributions to the AHV;
→ retirees (AHV benefit recipients) who continue to work as
employees, even if no contributions are paid to the AHV.
.
Persons not subject to the compulsory scheme
In addition to the self-employed, the following persons are not
compulsorily insured:
→ family members working in the family business who do not
receive earnings in cash and do not pay contributions to
AHV or persons who are treated as self-employed farmers;
→ members of boards of directors who do not work at the
company;
→ persons carrying out activities in the public interest who do
not have a contract of employment (e. g. members of parliament, public agencies and commissions);
→ Swiss government employees subject to military insurance;
→ persons residing in an EU/EFTA country who work in that
country and in Switzerland.
Voluntary insurance
Self-employed Swiss residents and family members working in the family business who are not subject to compulsory
insurance can take out accident insurance voluntarily. This
also applies to persons pursuing self-employment in Switzerland who reside in an EU/EFTA country but who were subject
to Swiss Social insurance law at some point in the past. Voluntary insurance is not available for non-gainfully employed
employers who merely employ household domestic staff. If the
business is subject to Suva, voluntary insurance must be taken
out with Suva, regardless of whether any staff are employed.
If the business is not subject to Suva, then voluntarily insured
persons must be included in the employees’ contract. If there
are no employees, insurance can be taken out with a private
insurer or a health insurance fund.
Scope of cover and premiums
Insured benefits are paid in the event of occupational accidents, occupational illnesses and non-occupational accidents.
Part-time employees are only insured against non-occupational accidents if they work for the same employer for at least
eight hours per week. The premium is levied on all earnings
that are subject to premiums. This is equal to the pensionable salary. The premium for occupational accidents and occupational illnesses is borne by the employer; the premium for
non-occupational accidents is charged to the employee unless
other arrangements have been made in the employee’s favour.
The entire premium is owed by the employer, who deducts the
employee’s share of the contribution from the employee’s salary.
Pensionable salary
The pensionable salary is equal to the AHV salary, subject to a
limit of CHF 148 200.– per year or CHF 406.– per day. The pensionable salary is also understood to mean earnings on which
no contributions to AHV are payable due to the insured person’s age, and also family allowances granted as children’s,
training or household allowances.
Insurance term
Insurance cover commences on the date that the employee
commences employment or should have commenced employment in accordance with the employment agreement, but in
any case at the time they leave for work. Insurance cover ends
on the 30th day after the date on which employees lose their
claim to at least half of their salary. The insurance cover for
non-occupational accidents can be extended by a maximum of
180 days by taking out insurance by special agreement within
the 30-day extension of cover period. The insurance cover continues if at least 50 per cent of the earnings or daily allowances
are paid, i.e. also in case of illness and accident. Unemployed
persons entitled to daily allowances under unemployment
insurance have compulsory accident insurance with Suva. The
insurance remains in force for two years and can be extended
to up to six years if employees are transferred abroad and
were compulsorily insured in Switzerland immediately before
their transfer. Insurance cover continues for one year after the
employee has been transferred to an EU/EFTA country. This
period can be extended with official approval. Insurance cover
is suspended for as long as the insured person is subject to military insurance or foreign compulsory accident insurance.
Benefits
Care allowance and reimbursement of costs
→ Medical treatment
The insurance pays the costs of:
– outpatient treatment by a doctor, dentist or medical assistants acting on a doctor’s or dentist’s orders, or by a chiropractor;
– pharmaceutical drugs and tests prescribed by a doctor
or dentist;
– treatment, food and accommodation in the general ward
of a hospital;
– convalescence and spa treatments prescribed by a medical practitioner,
– Any remedies and objects required for the medical
recovery.
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→ Medical treatment abroad
The insured person receives refunds of up to twice the
amount of the expenses that would have been incurred for
treatment in Switzerland. Medical treatments in EU and
EFTA countries are subject to special provisions.
→ Home care
Contributions for home care are paid as long as the treatment is provided by approved home nursing staff.
→ Physical aids
The insured person is entitled to aids that compensate for
physical impairments or functional deficiencies (e. g. prostheses).
→ Loss of or damage to property
The cost of repairing damage caused as a result of an accident to property that acts as a replacement for a part of the
body or a physical function (e. g. damage to prostheses in
use) are reimbursed. The replacement of spectacles, hearing
aids and dentures may only be claimed for in connection
with a bodily injury requiring treatment.
→ Travel, transportation and rescue costs
Compensation is paid for any necessary rescue and recovery
costs and the cost of medically required travel and transportation. Rescue, recovery, travel and transportation costs
incurred abroad are reimbursed to the value of up to 20 per
cent of the maximum amount of insured annual earnings.
→ Transport of deceased persons
As a rule, the costs necessary for transporting deceased persons to the place of interment are reimbursed.
→ Funeral costs
Compensation is paid for funeral costs provided that they
do not exceed seven times the maximum pensionable daily
salary.
Cash benefits
→ Daily allowances
Insured persons are entitled to a daily allowance if they
are totally or partially incapacitated for work as a result of
an accident. The daily allowance is paid for each calendar
day starting on the third day after the date of the accident.
The daily allowance for total incapacity for work is equal
to 80 per cent of the pensionable salary, and is reduced for
partial incapacity for work accordingly. The daily allowance
is not paid as long as the insured person can claim a daily
allowance under the IV or a maternity allowance under the
income compensation regulations (EO). For stays at hospitals, sanatoriums and clinics, the following deductions are
made from the daily allowances for maintenance expenses
covered by the accident insurance:
– 20 per cent of the daily allowance, but no more than
CHF 20.– for single persons without maintenance or support obligations;
– 10 per cent of the daily allowance, but no more than
CHF 10.– for married persons and for single persons with
maintenance or support obligations insofar as the next
paragraph is not applicable.
For married or single persons who are responsible for
minors or children in education or training, no deductions
are made.
→ Disability pension
Insured persons who become at least 10 per cent disabled as
a result of the accident are entitled to a disability pension.
The pension for total disability is 80 per cent of the pensionable salary, and is reduced for partial disability accordingly. If insured persons are entitled to an IV or AHV pension, they are granted a supplementary pension to bring
the AHV or IV pension up to 90 per cent of their pensionable salary. However, the maximum amount paid must not
exceed the amount payable for total or partial disability. If
the pension recipient’s degree of disability changes significantly, the pension is increased or reduced accordingly, or
discontinued if the pensioner has regained his or her full
capacity for work.
→ Allowance for physical and mental impairment
Insured persons whose physical or mental state is permanently and significantly impaired as a result of an accident
are entitled to an adequate allowance for the impairment in
the form of a lump-sum benefit. An allowance for physical
and mental impairment can also be granted without simultaneously awarding a pension.
→ Helplessness care allowance
Insured persons who, due to a health impairment, permanently require personal supervision or the assistance of a
third party to carry out everyday living activities are entitled to a helplessness care allowance.
→ Survivors’ pensions
If the insured person dies as a result of the accident, then
the surviving spouse and children are entitled to survivors’
pensions. The survivors’ pensions are, as a proportion of
pensionable salary:
– 40 per cent for widows and widowers (only under certain conditions);
– 15 per cent for half orphans;
– 25 per cent for full orphans;
– a combined total of no more than 70 per cent for multiple survivors;
– 20 per cent for the divorced spouse, but no more than the
maintenance allowance owed.
If the survivors are entitled to AHV or IV pensions, then
they are granted a supplementary pension to bring the AHV
or IV pension up to 90 per cent of pensionable earnings.
However, the maximum amount paid must not exceed the
amount payable under the aforementioned scale.
Adjustment of pensions to inflation
Pensions are adjusted for inflation in accordance with the
Swiss Consumer Price Index at the same time as AHV pensions.
Reduction and denial of benefits
Disability pensions, allowances for physical and mental
impairment and survivors’ pensions are reduced if the health
impairment or death is only partly the result of an accident. If
insured persons deliberately cause their own death or impair
their own health, then, except for funeral costs, there is no
entitlement to insured benefits. If the insured person caused
the accident by gross negligence, the daily allowances paid by
the insurance for non-occupational accidents are reduced in
the first two years following the accident. If the insured person caused the accident by intentionally committing a felony
or offence, cash benefits can be reduced or, in particularly serious cases, denied. All insured benefits are denied in the case
of accidents that occur while insured persons are serving in a
foreign military or participating in war-like activities, acts of
terrorism or organised crime. Cash benefits are reduced by at
least half for accidents that occur due to:
→ participation in brawls or fights, unless the insured person
was injured by the persons fighting while trying to assist a
defenceless person or was an innocent bystander;
→ hazards to which insured persons expose themselves by
severely provoking others;
→ participation in civil unrest.
In the case of non-occupational accidents resulting from the
insured person taking a hazardous risk, monetary benefits are
reduced by half, or refused in particularly serious cases. Hazardous exposure to risks are actions that expose the insured
person to a particularly high level of danger, where the insured
person did not or was not able to take the precautions needed
to limit the risk to a sensible level (e. g. motorcycle races, climbing buildings, etc.). However, actions taken to rescue other persons are insured even if they are to be considered hazardous.
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Supplementary Benefits to Old-Age, Survivors’ and Disability Insurance (ELG)
Supplementary Benefits to Old-Age, Survivors’
and Disability Insurance (ELG)
of 6 October 2006, in force since 1 January 2008
Purpose
Supplementary benefits were introduced to ensure that, in
accordance with the constitutional mandate, all AHV/IV pension recipients and recipients of IV daily allowances receive
sufficient income to cover their basic subsistence needs. In
order to achieve this objective, the federal government and the
cantons award supplementary benefits to cover the basic subsistence needs of persons who meet the qualifying conditions.
Persons entitled to benefits
Persons have an individual entitlement to supplementary benefits provided they are aged 18 or over and are domiciled and
habitually resident in Switzerland. Foreigners must have lived
in Switzerland for a continuous period of ten years (qualifying period) immediately prior to the date on which the supplementary benefit is claimed. The qualifying period for refugees
and stateless persons is five years. Special provisions exist for
nationals of countries with which Switzerland has concluded a
social security agreement.
Entitlement to supplementary benefits is limited to:
→ recipients of an AHV old-age or survivors’ pension;
→ recipients of an IV disability pension or daily allowance
(that has been received for a minimum of six months); and
→ recipients of an IV helplessness allowance who have reached
the age of 18,
→ whose pension, daily allowance or helplessness allowance
does not fully cover their basic subsistence needs.
Contributions
The annual supplementary benefits are not financed by deductions from salary, but are paid for by the federal government
(five eighths) and the cantons (three eighths).
Benefits
The annual supplementary benefit is a cash benefit. It corresponds to the amount by which the approved expenditure
exceeds the applicable income.
The approved expenditure
amounts are as follows:
CHF, per year
Amount for the general living expenses
of:
→ single persons
→ married couples
→ each of the first two children
→ each of the two subsequent children
→ each further child
19 290.–
28 935.–
10 080.–
6720.–
3360.–
Actual rental costs for a home
→ for single persons up to a maximum
of:
→ for married couples up to a maximum
of:
13 200.–
15 000.–
→ Expenditure to secure earned income
(costs to obtain income from gainful
activity)
Actual costs
→ Building maintenance costs, if
applicable
Actual costs
→ Social insurance contributions
Actual costs
→ Flat-rate amount (varies by canton)
for compulsory health insurance
As stipulated by
the canton
→ Any maintenance contributions made
under family law
Actual costs
Relevant income includes a proportion of the earned income
and a proportion of the assets, the AHV/IV pension or IV daily
allowance received, as well as any family allowances and maintenance payments received.
Supplementary Benefits to Old-Age, Survivors’ and Disability Insurance (ELG)
Adjustment of benefits to inflation
As a rule, the Federal Council reviews the approved expenditure and relevant income amounts every two years and
adjusts them if required. As a result, the supplementary benefit amount paid out may be adjusted upwards or downwards.
Distinction between supplementary benefits and social
welfare
Social welfare also serves to cover basic subsistence needs.
However, this is intended first and foremost for people who
do not receive an AHV/IV pension or IV daily allowance and
who are therefore not entitled to supplementary benefits. If the
income or financial situation of a person receiving social welfare improves significantly, the social welfare received must be
repaid. In contrast, supplementary benefits that have been paid
out do not have to be repaid under any circumstances.
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Health Insurance (KVG)
Health Insurance (KVG)
of 18 March 1994, in force since 1 January 1996
Purpose
The KVG governs social health insurance. This includes compulsory healthcare insurance and voluntary daily sickness
allowance insurance. Social health insurance provides benefits in the event of illness, accident (provided it is not covered
by accident insurance) and maternity.
Insured persons
This insurance principally covers all residents of Switzerland.
Immigrants to Switzerland must take out insurance within
three months after taking up residence. Also subject to compulsory insurance are cross-border commuters of individual EU and EFTA countries and recipients of a Swiss pension
and their family members living in those countries. Employees transferred to an EU country remain insured for one year.
Employees transferred to any other country remain insured
for two years. Extensions are possible with approval from the
authorities.
Premiums
All adult insured persons living in the same region pay the
same premium to their health insurance fund. In addition,
they pay some of the costs of the benefits they receive with a
fixed-sum excess (2016: minimum CHF 300.–) and a deductible of 10 per cent, limited to a maximum of CHF 700.–. There
is no deductible for maternity benefits. In some cases, special
regulations apply to the fixed-sum excess and deductible for
persons residing in an EU/EFTA country. Insured persons can
reduce the premium or the deductible by agreeing to a restriction in their choice of service provider (e. g. doctor) or an
increase in the fixed-sum excess. The cantons offer premium
discounts to indigent insured persons.
Benefits (compulsory basic insurance)
The benefits include:
→ examinations, treatment and care;
→ tests, pharmaceutical drugs and any remedies and devices
required for examination or treatment;
→ contributions toward the costs of medically prescribed spa
treatments;
→ medical rehabilitation measures;
→ stays in the general ward of a hospital or a semi-inpatient
facility;
→ contributions toward the costs of medically required transportation and toward rescue costs.
Health insurance under the Swiss Federal Law on Insurance Contracts (VVG)
A supplementary health insurance can be concluded under
the Swiss Federal Law on Insurance Contracts (VVG) to cover
medical services that are not covered by compulsory health
insurance. This enables the insurance coverage, for example, of the cost of alternative health care, emergency treatment in foreign countries, medicines not covered by regular
health insurance plans, dental treatment, transport and rescue services, hospitalisation in single or double wards (private/
semi-private), free choice of doctor, domestic help, cosmetic
surgery and other benefits. In many areas, such as premium
adjustment, period of notice, etc., other rules apply to supplementary health insurance than those that govern compulsory health insurance under the Swiss Federal Law on Health
Insurance (KVG).
Benefits
Benefits
AHV/IV/EO
Swiss Federal Law on Old Age and Survivors’ Insurance (AHVG, in force since 1 January 1948)
Swiss Federal Law on Disability Insurance (IVG, in force since 1 January 1960)
Swiss Federal Law on Compensation for Loss of Earnings for Persons on Military Service or Maternity Leave
(EOG, in force since 1 January 1953)
Insured group of persons
Pensionable salary
This insurance is compulsory for everyone whose residence or place of work is in Switzerland (with exceptions) and for Swiss citizens working abroad as Swiss government employees. Persons subject to the Swiss social security system due to bilateral agreements with
the EU are also insured.
The AHV salary is the salary subject to contributions.
The pensionable salary is the AHV salary
up to a maximum of CHF 84 600.–.
Benefits
Treatment, care, recovery
Temporary incapacity for work
Permanent incapacity for work
Medical and occupational integration
measures, physical aids and helplessness
care allowance.
A daily disability allowance during rehabilitation equal to 80% of the pensionable
salary, up to a limit of CHF 148 200.–.
A daily allowance as supplementary
income for those performing military
service (CHF 62.– to CHF 245.– per day) as
well as for maternity (maximum CHF 196.–
per day).
Pension depending on degree of disability
From 40% ............................ ¼ pension
From 50% ............................ ½ pension
From 60% ............................ ¾ pension
From 70% ...........................full pension
Children’s
allowance ............. 40% of the IV pension
Retirement benefits
Inflation adjustments
The pension amounts to the following
percentages of the retirement pension:
For widows and widowers................ 80%
For half orphans ............................ 40%
For full orphans max....................... 60%
Special terms and conditions apply to
widows and divorced spouses.
The pension entitlement arises on reaching the age of 65 (men) or 64 (women). An
advanced payment on a retirement pension can be requested 1 or 2 years earlier,
with a reduction of 6,8% per year.
Retirement pensions can also be deferred
by up to five years, which increases the
pension accordingly.
As a rule, the Swiss Federal Council
adjusts ordinary pensions every two years
to average changes in earnings and price
trends at the start of the calendar year.
Financing
Costs
Gainfully employed:
AHV .......................................... 8,4%
IV ............................................. 1,4%
EO ...........................................0,45%
Cost allocation
Gainfully self-employed:
AHV .......................................... 7,8%
IV ............................................. 1,4%
EO ...........................................0,45%
Non-gainfully employed:
special provisions apply
All contributions are charged as a percentage of the AHV salary(without upper
limit).
The employer and employee each pay half
and the Federal Government and the
cantons pay the subsidies.
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Benefits
Compulsory Occupational Pensions
Swiss Federal Law on Occupational Retirement, Survivors’ and Disability Pension Plans (BVG, in force since 1 January 1985)
Pensionable salary
This insurance is compulsory for:
→ employees subject to AHV contributions from 1 January after reaching the age of 17 with
annual AHV earnings in excess of CHF 21 150.–;
→ persons entitled to unemployment benefits, for disability and death, if their daily
allowance exceeds CHF 81.20.
Self-employed persons and employees who are not compulsorily insured can take out this
insurance voluntarily.
The insurance covers annual AHV salary
between CHF 24 675.– and CHF 84 600.–,
i.e. no more than CHF 59 925.– in earnings.
If the pensionable salary is less than
CHF 3525.– per year, it must be rounded up
to this same amount.
Benefits
No insured benefits.
Pension depending on degree of disability
From 40% ............................ ¼ pension
From 50% ............................ ½ pension
From 60% ............................ ¾ pension
From 70% ...........................full pension
The full pensionis currently 6,8% for men
and women of the projected retirement
assets excluding interest. Disabled persons’ children’s pension = 20% of the
disability pension of the insured disabled
parent.
Retirement benefits
A widow’s or widower’s pension upon
death before retirement = 60% of the
disability pension. A widow’s or widower’s
pension upon death after retirement =
60% of the retirement pension. An
orphan’s pension = 20% of the disability
pension. The divorced spouse is treated
the same as the widow or widower after
the death of his or her former spouse
(special terms and conditions). A surviving
spouse who is not obligated to pay maintenance to children only receives a pension if
he or she is 45 years or older and the
marriage lasted for at least 5 years.
Retirement age:
Men....................................... 65 years
Women................................... 64 years
Retirement pension = for men and women
currently 6,8% of the projected interestbearing retirement assets.
Children’s allowance = 20% of the retirement pension. Early retirement or a deferment of retirement until the age of 70 at
the latest is possible if provided for under
the regulations. Benefits are reduced or
increased accordingly.
Survivors’ and disability pensions whose
term has exceeded 3 years are adjusted to
changes in the price trend on the following
1 January, thereafter the same as AHV/IV.
Financing
Costs
Costs for retirement credits (as a percentage of the pensionable salary):
Age for women/men:
25–34 ..........................................7%
35–44 ........................................ 10%
45–54 .........................................15%
55–64/65.................................... 18%
Cost allocation
Costs for death and disability benefits,
contributions to the Security Fund, costs
for inflation adjustment.
The employer contribution must be at
least as much as the total of all the
employee contributions.
Benefits
Unemployment insurance
Federal Law on Compulsory Unemployment Insurance and Benefits on Insolvency (AVIG, in force since 1 January 1984)
Pensionable salary
This insurance covers residents of Switzerland from the time they complete compulsory
education until they reach the AHV retirement age, and who are liable to pay contributions on income from employment or who have been exempted from their contribution
liability.
AHV salary up to a maximum of
CHF 148 200.–.
Benefits
In case of illness and accident: entitlement to a maximum of 44 daily allowances within the two-year reference
period.
Short-time work allowances, inclement
weather allowance, allowance in case of
employer insolvency, financial benefits
for labour market measures.
Unemployment benefit: max. 520 daily
allowances (depending on the insured
person’s age and the contribution period)
of 80% of the pensionable salary up to
CHF 148 200.– (70% for certain insured
persons).
The unemployment insurance does not
provide any survivors’ benefits. If the
daily allowance exceeds CHF 81.20,
recipients of unemployment benefits
receive disability and survivors’ benefits
from the occupational pension plan
(BVG).
Since unemployment insurance does not pay pensions, but temporary daily allowances
instead, the legislators have not introduced automatic inflation adjustments.
Financing
Costs
Cost allocation
2,2% of the pensionable salary up to
CHF 148 200.–, plus 1% of the pensionable salary that exceeds this amount.
The employee and employer each pay 50% of the contributions.
Military insurance
Swiss Federal Law on Military Insurance (MVG, in force since 1 January 1994)
Pensionable salary
This insurance is compulsory for members of the military and civil defence, persons
rendering civilian service, persons carrying out off-duty military activities and participants
in off-duty firearms training.
AHV salary up to a maximum of
CHF 150 918.–.
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Benefits
Benefits
Care from doctor, hospital or at home,
integration measures, aids, helplessness
care.
Daily allowance of 80% of pensionable
earnings until disability pension begins or
the capacity to work has been regained.
Pension of 80% of the pensionable salary
in the case of a total disability; supplementary pension to bring IV pension up to
a maximum of 90% of the pensionable
salary.
(As a percentage of the pensionable
salary)
Widows and widowers .................... 40%
Half orphans.................................. 15%
Full orphans ..................................25%
Special terms and conditions for parents
of the insured person and divorced survivors.
Inflation adjustments for military insurance are made at the same time as the
AHV/IV pension adjustments.
Financing
Cost allocation
The expenses are covered by the Swiss government.
Accident insurance
Swiss Federal Law on Accident Insurance (UVG, in force since 1 January 1984)
Pensionable salary
This insurance is compulsory for
→ employees working in Switzerland (with exceptions),
→ persons entitled to unemployment benefits.
Self-employed persons and family members working in the company can take out this
insurance voluntarily (special provisions for family members in the agricultural sector).
AHV earnings up to a maximum of
CHF 148 200.– (with exceptions).
Benefits
Care from doctor, hospital or at home,
aids, helplessness care.
Daily allowance of 80% of the pensionable salary starting on the third day until
the disability pension begins or the
capacity to work has been regained.
Pension of 80% of the pensionable salary
in case of total disability. The total
benefits from AHV/IV and UVG must not
exceed 90% of the pensionable salary
(supplementary pension).
As a percentage of the pensionable
salary)
Widows and widowers ................... 40%
Half orphans.................................15%
Full orphans ................................ 25%
Total of no more than..................... 70%
Special conditions apply to the surviving
divorced spouse.
Inflation adjustments for military insurance are made at the same time as the
AHV/IV pension adjustments.
Benefits
Financing
Costs
Cost allocation
The premiums depend on the type of
business and the business operational
conditions.
The costs of occupational accidents and diseases must be borne by the employer. The
costs of non-occupational accidents are (generally) borne by the employee.
Supplementary benefits
Swiss Federal Law on Supplementary Benefits to Old-Age, Survivors’ and Disability Insurance (ELG, in force since 1 January 2008)
Pensionable salary
The eligible beneficiaries are recipients of AHV/IV pensions and IV daily allowances
residing in Switzerland, as well as foreign nationals with ten uninterrupted years of residence in Switzerland or as otherwise provided for in international agreements, refugees
and stateless persons with five uninterrupted years of residence in Switzerland.
Income and capped expenditures (minimum subsistence level) are compared
based on clearly defined guidelines.
Supplementary benefits can only be
claimed if expenditure exceeds income
(special provisions for people living in
nursing homes or other special needs
facilities).
Benefits
Costs for dentists, medically prescribed
spa treatments, hospital (general ward),
etc. and care and aids are compensated as
ancillary benefits.
The supplementary benefits ensure that
beneficiaries reach the subsistence
minimum in accordance with their individually required expenditures (for home,
living costs, etc.). by increasing the
existing pension(s) or daily allowance.
Retirement benefits
cost of living, etc.) by increasing the
existing pension(s) or daily allowance.
cost of living, etc.) by increasing the
existing pension(s) or daily allowance. The
maximum benefits paid are CHF 19 290.–
for single persons, CHF 28 935.– for married couples and CHF 10 080.– for orphans.
Income limits are increased in accordance
with Federal Council decisions when new
AHV pensions are fixed.
Financing
Costs
Cost allocation
The Swiss government, cantons and
municipalities pay for the supplementary
benefits.
The Swiss government pays five eighths
of the annual supplementary benefits and
the cantons pay three eighths. The actual
cost allocation may vary in individual
areas.
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Benefits
Health insurance
Swiss Federal Law on Health Insurance (KVG, in force since 1 January 1996)
This insurance is compulsory for persons whose residence is in Switzerland (with exceptions) and for cross-border commuters of individual EU and EFTA countries. Certain groups of people can take out this insurance voluntarily.
Benefits
Costs are paid, among others, for the
following:
→ Medical consultations
→ Hospital stays
→ Home care
→ Medical aids
→ Transportation and rescue costs
→ Spa treatments
Financing
Costs
Cost allocation
The premiums vary by residential area. Discounted premiums exist for children (up to 18)
and young adults (aged 19 to 25).
The individual insured person pays the
health insurance fund premium. The
Federation and cantons provide premium
discounts to insured persons in modest
financial circumstances.
Practical guide
Practical guide
AHV/IV/EO
Swiss Federal Law on Old Age and Survivors’ Insurance (AHVG, in force since 1 January 1948)
Swiss Federal Law on Disability Insurance (IVG, in force since 1 January 1960)
Swiss Federal Law on Compensation for Loss of Earnings for Persons on Military Service or Maternity Leave
(EOG, in force since 1 January 1953)
Registering a new employee
Change in salary
Immediate registration with the competent AHV compensation office (the AHV compensation office must issue an identification card for persons who do not have an AHV identification card).
Changes in salary only have to be reported
with the annual AHV/IV statement. The
employer must keep a record of employees’ salary deductions.
Termination of employment
Earnings incapacity
Death
This does not have to be reported to the
AHV compensation office; the annual filing
and transfer of contributions also includes
reporting how long the employee was
paid.
Persons wishing to claim IV benefits must
report to the responsible IV office as early
as possible to ensure timely registration. A
delayed application may result in the
delayed payment of potential benefits.
A death must be reported to the AHV
compensation office where the AHV
contributions were last settled.
Retirement
Payment and invoicing
of premiums
A retirement pension claim must be
reported to the AHV compensation office
where the AHV contributions were last
settled (approx. 2 months in advance). It
is essential to contact the office in the
case of early retirement or the deferral of
pension benefits.
Every employer is required to regularly
account for the earnings paid to employees in cash or in kind with the responsible AHV compensation office. The amount
withheld must be transferred, along with
the employer’s contribution, to the
responsible AHV compensation office.
Taxes
The employer’s contributions are considered operating expenses for direct tax
purposes. The employee’s contributions
can be deducted from direct taxes. Taxes
are generally assessed on 100% of the
benefits.
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Practical guide
Compulsory Occupational Pensions
Swiss Federal Law on Occupational Old-Age, Survivors’ and Disability Insurance (BVG, in force since 1 January 1985)
Change in salary
Persons earning more than CHF 21 150.– per year must be reported to the pension fund
from 1 January after reaching the age of 17 (exception: employees with an employment
contract limited to a maximum of three months).
There are special provisions for temporary assignments and consecutive short-term
employment contracts.
Changes in salary are generally accounted
for as at 1 January of each year. Changes
made to earnings during the year should
only be reported if they have a significant
impact on the amount of the pension
benefits.
Earnings incapacity
Death
The pension fund must be notified immediately of the termination so that the portable benefits can be calculated and
transferred to the new employer’s pension
fund.
The pension fund must be notified if it is
presumed that a person will be fully or
partially unable to work for an extended
period.
The death of an insured person or a
pensioner must be notified to the pension
fund immediately.
Retirement
The pension fund must ask the insured
person where the retirement pension
benefits should be transferred to in good
time. The pension fund must be notified
in good time of the insured person’s
intention to retire early or defer retirement
(if this is permitted by the regulations).
of premiums
As per agreement with the relevant
pension fund. The employee contributions and employer contributions are
to be transferred jointly to the pension
fund by the employer. The equal part of
the joint contribution owed by the
employee is deducted from his or her
salary.
Taxes
can be deducted from direct taxes. Taxes
are generally assessed on 100% of the
benefits. Lump-sum payments are
taxable at a reduced rate.
Unemployment insurance
Federal Law on Compulsory Unemployment Insurance and Benefits on Insolvency (AVIG, in force since 1 January 1984)
Death
New employees are registered for unemployment insurance and AHV at the same
time.
If the former employee cannot find employment, he or she must immediately file a
claim with the employment office.
The death of daily allowance recipients
must be reported to the unemployment
office immediately.
Retirement
Taxes
The payment of daily allowances ends
automatically on reaching the AHV retirement age.
Unemployment benefits are taxable as
replacement income.
Practical guide
Military insurance
Swiss Federal Law on Military Insurance (MVG, in force since 1 January 1994)
Earnings incapacity
Death
Taxes
The report is issued by the doctor or the
hospital administration.
The report is issued by the doctor or the
hospital administration.
Pensions or lump-sum benefits commencing for the first time or maturing on or after
1 January 1994 are fully taxed as income.
Accident insurance
Swiss Federal Law on Accident Insurance (UVG, in force since 1 January 1984)
Change in salary
There is no need for a separate notification. Instead, the new employee’s total earnings
must be included in the annual salaries declaration. Exception: The first person to be
insured must be reported immediately.
All changes in salary that are subject to
AHV contributions are recorded in the
annual salary statement Employers must
retain working time records and all other
records for a period of five years.
Earnings incapacity
Death
There is no need for a separate notification. The termination is recorded in the
annual salary statement.
Any incapacity for work must be reported
to the accident insurer immediately.
A death must be reported to the accident
insurer immediately.
of premiums
Taxes
Retirement
Until the retirement date, the salary on
the annual salary statement applies.
Insurance cover lapses after retirement.
A provisional advance premium is determined for each year. The final premium
invoice is issued at the end of the year
based on the annual salary statement
unless a fixed-rate premium has been
agreed upon.
can be deducted from direct taxes.
Depending on the financing expenditure,
direct taxes are assessed on all or part of
the benefits.
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30
Practical guide
Supplementary benefits
Swiss Federal Law on Supplementary Benefits to Old-Age, Survivors’ and Disability Insurance (ELG, in force since 1 January 2008)
Change in salary
Earnings incapacity
People who receive supplementary benefits must report to the responsible
cantonal office (generally the cantonal
AHV compensation office).
Changes in income and assets must be
reported immediately to the responsible
cantonal office.
If an employee can claim IV benefits, he/
she must file a supplementary benefits
claim with the relevant cantonal office.
Death
Retirement
Taxes
The responsible cantonal office must be
notified immediately if a recipient of
supplementary benefits dies.
The supplementary benefits claim must be
filed with the responsible cantonal office.
Supplementary benefits are generally
tax-exempt.
Health insurance
Swiss Federal Law on Military Insurance (KVG, in force since 1 January 1996)
A person who was not previously subject
to compulsory insurance (e. g. moving to
Switzerland from abroad) must obtain
cover from a health insurer within three
months.
The employer must instruct the employee withdrawing from service in writing that accident cover should be added back to the cover provided by the health insurer unless the
employee takes up a new employment or is insured with Suva in accordance with the
AVIG due to being unemployed.
Retirement
The employer must instruct the retiring
employee in writing that accident cover
should be added back to the cover
provided by the health insurer.
of premiums
Every insured person or every family
receives a premium invoice.
Taxes
Daily allowances are only taxable to the
extent that they exceed the doctor’s and
hospital fees and costs of treatment
borne by the taxpayer. Health insurance
premiums are deductible up to a maximum amount of taxable income.
Last revised in January 2016
Baloise
Safety
World
Baloise Insurance Ltd
Baloise Life Ltd
Aeschengraben 21, P.O. Box
CH-4002 Basel
Making you safer.
www.baloise.ch
000.1170 e 2.16 300
Customer Service 00800 24 800 800
Fax +41 58 285 90 73
[email protected]

Employer`s guide to social insurance

Transcrição

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IRF DAILY - Tuesday, 23 October 2012