Insurance for employees in switzerland

Insurance for employees

Protecting employees through various insurance schemes is in Switzerland not only a legal obligation for employers, but also a fundamental aspect of employee protection. These insurance schemes cover a broad range of risks – from accidents and old age to disability and loss of earnings due to family obligations.

The following text provides a comprehensive overview of the key insurance schemes that employers in Switzerland must take out for their employees in order to comply with legal requirements and ensure appropriate protection for their staff.

Old-Age and Survivors’ Insurance (AHV)

The AHV represents the first pillar of the Swiss social security system and serves as the primary financial support for people of retirement age as well as for survivors. Through joint contributions by employers and employees, a solidarity-based system is promoted that aims to secure the standard of living in old age or provide support to dependents in the event of death.

The AHV covers a broad range of benefits, including pensions, helplessness allowances, and supplementary benefits, underlining its central role within Switzerland’s social safety net.

Disability Insurance (IV)

Disability insurance complements the social security system by providing financial support and professional reintegration measures for individuals whose ability to work is limited due to illness or accident.

This insurance aims to promote and maintain independence and participation in working life. Financing is provided through contributions shared by employers and employees.

Occupational Pension Scheme (BVG)

The occupational pension scheme, also known as the pension fund, constitutes the second pillar of the Swiss pension system. It serves individual retirement provision and, in addition to the AHV, aims to largely maintain the accustomed standard of living in old age, in the event of disability, or upon death.

Participation in the occupational pension scheme is mandatory for all employees who earn a minimum annual income and is financed through contributions from employers and employees.

The pension fund is based on the funded system, whereby paid-in contributions are invested to build capital for pension payments. In contrast to the AHV, which offers a pay-as-you-go basic provision, occupational pensions enable income-related and contribution-based retirement provision.

Accident Insurance (UVG)

Accident insurance covers both occupational and non-occupational accidents and ensures that employees are not left to bear costs in the event of an accident.

Occupational accident insurance covers accidents occurring during work and on the way to work, while non-occupational accident insurance covers accidents during leisure time. Part-time employees working fewer than eight hours per week are insured only against occupational accidents.

Benefits range from coverage of medical treatment costs to compensation for loss of earnings through daily allowances.

Comprehensive insurance solutions contribute to compliance with legal requirements and promote employee well-being. As a fiduciary firm, we offer support in selecting and adapting the necessary insurance solutions.