Overview of social contributions and benefits

Anyone who works or lives in Switzerland is insured under the social security system. This protection is generally linked to obligatory insurance contributions. The amount of these contributions and how they are collected varies from one insurance scheme to another and from the employment status. This page provides an overview of all Swiss social security contributions.

When we stop earning an income in old age, retirement provision ensures that we can continue to live financially independently and free from ecnomic hardship. The Swiss old-age insurance system is based on three pillars: state provision (OASI), occupational provision (pension funds) and private provision.

Invalidity insurance system supports people who are unable to work or whose capacity to work is limited because of a health impairment. It helps with occupational rehabilitation, provides assistive devices and pays out pensions to safeguard the livelihood of the person affected and allow them to lead an independent life.

Individuals who are in military, alternative civilian or civil protection service receive an allowance to compensate for the resulting loss of earnings. This allowance is capped (maximum and minimum amounts).

Parents who are gainfully employed are entitled to paid leave following the birth or adoption of their child. Income compensation allowances (IC) partially cover the income lost by parents during their leave of absence to care for their new child.

Parents who are in paid work are entitled to family allowances. The purpose of this supplemental income is to partially compensate parents for the costs associated with raising a child.

Parents who have to leave work temporarily or reduce their working hours to take care of a child whose health is seriously impaired are entitled to 14 weeks' paid leave. The income compensation insurance (IC) partially compensates the parent for the income lost during this leave.

The death of a person can leave their immediate family facing financial difficulties. Benefits exist that provide surviving dependants with financial support. These include a widow's pension, a widower's pension and an orphan's pension.

Divorce has an impact on the provident scheme of both spouses. Their future entitlement to an OASI old-age or invalidity pension (first pillar) is calculated by dividing their combined income during the years of their marriage equally between them. Occupational pension (second pillar) entitlements accrued during the marriage are also shared equally between the former spouses. The dissolution of a registered partnership is equivalent to a divorce.

Small and medium-sized enterprises (SMEs) have social security obligations and rights. If you run this kind of business, you must ensure that both you and your employees have proper social security coverage.

The self-employed are responsible for their social insurance cover. They are legally required to pay into the old-age and survivors’ insurance (OASI), invalidity insurance, income compensation and family allowances. All other types of insurance cover are optional.

Individuals who are nearing retirement age and who are no longer entitled to unemployment benefits may be eligible for bridging benefits to cover expenses like rent, food and health-related costs. The purpose is to provide the claimant with financial support so that they do not have to bring forward payment of their old-age pension.

Are you planning to leave Switzerland or move here? Are you going to be posted to Switzerland temporarily? Below is an overview of the points to consider regarding Swiss social security cover.

Hereafter you will find answers to frequently asked questions about individual types of insurance. The answers are basic and refer to the most frequent cases. For specific issues, please enquire with your compensation fund, disability insurance office, family allowances compensation fund or pension fund.