Case 1: Place of employment is Switzerland, employer is based in an EU/EFTA member state

Employees working in Switzerland for an employer or a company based in an EU/EFTA state are subject to statutory Swiss social-security regulations, regardless of where they live and where the employer is based. The place-of-employment principle applies pursuant to Art. 11 (3a) of Regulation (EC) no. 883/2004. Being employed in Switzerland is regarded as equivalent to having an employer based in Switzerland.

Example:

Company X, a website specialist based in Frankfurt a.M. (Germany), has a Swiss employee living and working in Schaffhausen (Switzerland), who develops websites for customers of company X from her office. Under the place-of-employment principle, that employee is subject to statutory Swiss social-security regulations.

Old age, survivors and disability insurance (AHV/IV-AVS/AI), loss of earnings compensation insurance (EO-APG), unemployment insurance (ALV-AC)

If the employees reside in Switzerland, the first port of call for foreign employers is the cantonal AHV compensation fund in the employees’ canton of residence. If the employees live in an EU/EFTA state, however, it is the canton compensation fund of the canton where they are gainfully employed.

Occupational benefit plan (BV-PP)

Foreign employers generally have the option of joining an existing pension scheme and insuring their employees with it (e.g. collective or joint arrangements). But they are also free to establish a pension scheme of their own. Otherwise they must join the National Substitute Pension Plan Foundation (Stiftung Auffangeinrichtung BVG).

Accident insurance (UV-AA)

Some employers must affiliate to SUVA, the Swiss National Accident Insurance Fund (description in Art. 66 of the Federal Act on Accident Insurance). Those not covered by Art. 66 are obliged to affiliate to a private accident insurer. If employers do not join a private accident-insurance scheme, the AA Substitute Fund (Ersatzkasse UVG - caisse supplétive LAA) can assign the employer to a private insurer.

Family benefits (FamZ-AFam)

If the employees reside in Switzerland, the employer must join the family compensation fund of the employees’ canton of residence. If they live in an EU/EFTA state, the first port of call for the foreign employer is the family compensation fund of the canton in which the employees work.

Further information

Last modification 26.02.2016

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