Switzerland Statutory and Private Employee Benefits, 2023 Update

Switzerland Statutory and Private Employee Benefits Report Overview

The Swiss social security system comprises various forms of social insurance. Social insurance aims to protect both people living and working in Switzerland and their dependents. It is organized federally, and social security responsibilities are divided between federal and cantonal authorities. The Swiss social security system consists of five components: old-age and disability pension; protection against the consequences of illness and accidents; income compensation allowances for military, civilian, or civil defense services; maternity and unemployment insurance; and family allowances.

The Swiss economy is based on a highly qualified labor force performing highly skilled work. Most of the country’s residents are employed by small and medium-sized enterprises.

The Switzerland employee benefits market research report provides in-depth industry analysis, information, and insights into employee benefits in Switzerland, including an overview of the state and compulsory benefits in Switzerland, detailed information about the private benefits in Switzerland, insights on various central institutions responsible for the administration of the different branches of social security and the regulatory framework of the employee benefits in Switzerland.

Regulations Guiding Employee Benefits Market in Switzerland

Some of the key regulations guiding the employee benefits market in Switzerland are Federal Law on Old-Age and Survivors’ Insurance, 1946, Federal Law on General Provisions concerning Legislation on Social Insurances, 2000, Federal Law on Occupational Benefit Plans concerning Old-age, Survivors, and Invalidity, 1982, Federal Law on Sickness Insurance, 1994, and Federal Law on Accident Insurance, 1981 among others.

Switzerland Employee Benefits Market Segmentation by State and Compulsory Benefits

The key state and compulsory benefits offered by employers in Switzerland are retirement benefits, death in service, long-term disability benefits, short-term sickness benefits, medical benefits, workers’ compensation insurance, maternity and paternity benefits, and other benefits.

Retirement Benefits: The Switzerland pension system comprises the following three pillars. The first pillar consists of a pension system (DB system) offering old-age and survivors’ insurance. The second pillar consists of the occupational pension system, which includes both DB and DC plans. The third pillar includes individual voluntary pensions.

Short-Term Sickness Benefits: A short-term sickness benefit is an optional insurance scheme that covers the risk of wage loss due to sickness. It also covers the risk of wage loss due to an accident if it is not covered by accident insurance. These benefits are funded through the contributions made by the employer and employee. In case of sickness, there is a continued payment of wages by the employer for a limited period.

Medical Benefits: All persons residing in Switzerland are required to be mandatorily insured for healthcare. The persons should become insured within three months from the day they start residing in the country. It is not the responsibility of employers to insure employees for healthcare. The health insurance ceases after the insured dies or if the insured moves out of the EU/EFTA for residence.

Switzerland Employee Benefits Market Segmentation by Private Benefits

The key private benefits offered by the employers of Switzerland are retirement benefits, death benefits, medical benefits, disability benefits, accidental death and dismemberment benefits, and other benefits.

Retirement Benefits: In Switzerland, employers’ participation in voluntary retirement benefits is generally limited to contributions made for those employees who are not covered by the mandatory provisions of Pillar II occupational pension schemes. Most employers provide pension benefits to employees through voluntary contributions to occupational pension plans under Pillar II. Employer-sponsored voluntary defined benefit retirement plans are not prevalent. Pillar III is an individual voluntary pension system, which is only applicable to employees and self-employed persons who are not eligible for the Pillar II mandatory occupational pension system.

Disability Benefits: In Switzerland, employers provide long-term disability benefits to their employees through comprehensive group risk insurance plans, group accidents, and group health, which cover both death and disability due to sickness or accident, but standalone short-term disability plans are not prevalent in the country.

For more insights on the Switzerland employee benefits market, download a free report sample

Switzerland Statutory and Private Employee Benefits Market Report Overview

Scope

This report provides a detailed analysis of employee benefits in Switzerland –

• It offers a detailed analysis of the key government-sponsored employee benefits, along with private benefits.
• It covers an exhaustive list of employee benefits, including retirement benefits, death in service, long-term disability benefits, medical benefits, workmen’s compensation insurance, maternity and paternity benefits, family benefits, unemployment benefits, Long-term care benefits, leaves and holidays, and private benefits.
• It highlights the economic and regulatory situations relating to employee benefits in Switzerland.

Reasons to Buy

• Make strategic decisions using in-depth information related to employee benefits in the country.
• Assess employee benefits of the market, including state and compulsory benefits and private benefits.
• Gain insights into the key employee benefit schemes offered by private employers in the country.
• Gain insights into key organizations governing the employee benefits market, and their impact on companies.