Switzerland has a close-knit network of different types of social insurance, which offer the persons living and working here, and their dependents, a broad protection against risks whose financial consequences could not be covered without insurance.
The Swiss social security system is divided into five areas:
- old-age, survivors' and invalidity insurance (the three-pillar system);
- protection against the consequences of illness and accidents;
- income compensation allowances in case of service and in case of maternity;
- unemployment insurance;
- family allowances.
These different types of insurance offer protection in the form of pensions, unemployment benefits and family allowances, as well as paying for costs incurred through illness and accidents.
The benefits paid out by the different types of social security are in principle financed by contributions levied on income. For the health insurance, each person insured pays a premium. The Swiss Confederation and the cantons contribute different amounts to the social security fund of the basic pension and invalidity insurance, or finance them either in toto (supplementary benefits) or by subsidising premiums for persons with very low incomes (reduced premiums for health insurance).
Unemployment insurance
Unemployment insurance provides benefits in the case of loss of employment, shortened working hours, lack of employment due to weather conditions and insolvency on the part of the employer. This insurance also pays for re-integration measures.
All persons in gainful employment are obliged to contribute to the unemployment insurance scheme with the exception of some family members of persons working in the agricultural sector and persons who have reached retirement age. The self-employed are not covered by unemployment insurance.
The State Secretariat for Economic Affairs (SECO) handles unemployment insurance (ALV) matters. For more information on the ALV, consult the SECO website.
Family allowances
The latest federal law on family allowances is effective since the 1 January 2009. The law specifies a child benefit of at least CHF 200 and an education allowance of at least CHF 250. Benefits take the form of family allowances of at least
- CHF 200 per child, per month for children up to the age of 16;
- education allowances for 16-25 year olds still in education of at least CHF 250 per child, per month.
The cantons may grant benefits that are higher than the legal minimum.
The following persons are eligible for family allowances:- salaried employees;
- self-employed farmers;
- individuals who are not gainfully employed and on a low income.
Depending on the canton, the self-employed, with the exception of those in the agricultural sector, may be eligible for family allowances. Unlike the standard family allowance, these are partly means-tested.
Federal Social Insurance Office, Switzerland / Expatica
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Various forms of social insurance protect individuals living and working in Switzerland, and their dependents. Here is an overview of the Swiss social security system, including unemployment insurance and family allowances.
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