Social Security

Social insurance in Switzerland is financed by its residents. It is based on the principle of solidarity: the majority of the population pays contributions so that individuals or specific groups can receive support when needed.

Social insurance is usually compulsory. Contributions are deducted directly from employees’ salaries. Employers, self-employed persons, and people without paid employment also make financial contributions.

Social insurance provides support in certain life situations. It pays daily allowances, pensions, or supplements and may also cover the costs of illness and accidents. All social insurance schemes are regulated by the state.

• For retirement age, death, and disability: old-age and survivors’ insurance (AHV), disability insurance (IV), occupational pension schemes, and private pension schemes
• Illness and accident: health and accident insurance
• Maternity: maternity allowance
• Unemployment: unemployment insurance
• Families with children: family allowances

Links:

AK Zug / Information and contact (DE)

Old Age and survivors' insurance (AHV) is a state institution. Most adults must make financial contributions.

For employees, the contributions are deducted directly from the monthly salary, and the employer pays half.

Self-employed or unemployed individuals should contact the Ausgleichskasse / IV-Stelle Zug (AK Zug) to find out how to pay their contributions.

The AHV pays a monthly pension to retired individuals. The amount of the pension depends on the total contributions paid.

In the event of death, the AHV also supports the surviving spouse and children (widow’s and orphan’s pensions).

Links:

AK Zug / Further information (DE)

Bundesverwaltung / Further information

Informationsstelle AHV/IV / Further information

ch.ch / Further information

The AHV alone is usually not enough to maintain the same standard of living after retirement. For this reason, employees also have an occupational pension scheme (Pensionskasse), which is compulsory once a certain annual income is reached.

The contributions are deducted directly from the monthly salary, and the employer covers at least half. The self-employed are not required to contribute, but they can do so voluntarily.

The money saved in the pension fund is paid out in retirement either as a monthly pension or as a one-time lump sum. In certain cases, it can also be withdrawn earlier – for example, when starting a business, moving abroad or buying a home or apartment.

Links:

Informationsstelle AHV/IV / Further information

ch.ch / Further information

The 3rd pillar is a voluntary private pension scheme that offers tax advantages. It can be arranged through banks or insurance companies.

Saving additional money through the 3rd pillar in order to have financial reserves in old age is highly recommended.

Links:

ch.ch / Further information

Older people who, despite AHV and an occupational pension, do not have enough money to cover their living costs may be entitled to supplementary benefits (Ergänzungsleistungen, EL). Applications must be submitted to the Ausgleichskasse / IV-Stelle Zug (AK Zug).

The law clearly defines who is entitled to these benefits. Supplementary benefits are financed by taxpayers.

Links:

AK Zug / Further information (DE)

Informationsstelle AHV/IV / Further information

ch.ch / Further information

The disability insurance (Invalidenversicherung, IV) is a state insurance scheme. Most adults are required to pay contributions.

For employees, contributions are deducted directly from the monthly salary, and the employer pays half.

Self-employed persons or those without employment should contact the Ausgleichskasse / IV-Stelle Zug (AK Zug) to find out how to pay their contributions.

Links:

AK Zug / Information and contact (DE)

People who, for at least one year, are unable to work or can only work part-time due to physical or psychological health reasons are entitled to support from the IV.

Financial support is provided in the form of a monthly pension. However, this pension is only paid once it is no longer possible to reintegrate  into work life because of their disability.

The IV also actively supports insured persons in finding suitable employment.

Applications for support must be submitted to the Ausgleichskasse / IV-Stelle Zug (AK Zug).

Links:

AK Zug / Further information (DE)

AK Zug / Information and contact (DE)

People who, despite receiving support from the IV, still do not have enough money to live on may also be entitled to supplementary benefits (Ergänzungsleistungen, EL). Applications must be submitted to the Ausgleichskasse / IV-Stelle Zug (AK Zug).

The law defines who is entitled. Supplementary benefits are financed by taxpayers.

Links: 

Informationsstelle AHV/IV / Further information

ch.ch / Further information

AK Zug / Information and contact (DE)

AK Zug / Information, forms, and leaflets (DE)

Unemployment insurance (ALV) is a compulsory state insurance scheme for all employees. Contributions are deducted directly from employees’ monthly wages, with the employer covering half of the amount. Self-employed persons are not eligible unemployment insurance.

Individuals who become unemployed receive monthly compensation for loss of income (unemployment benefits, Arbeitslosengeld) from the unemployment fund. The amount, timing, and duration of these payments depend on various factors, such as the length of previous employment and the reason for unemployment.

Links: 

Informationsstelle AHV/IV / Further information

Bundesverwaltung / Further information (DE)

Persons who become unemployed must register with the regional employment centre (RAV) as soon as possible. Ideally, this is done before the last day of work and no later than the first day of unemployment. At the same time, one must register with the responsible regional employment centre (RAV).

Registration can be done online or in person. Once registered, the Regional Employment Centre (RAV) will contact the unemployed person to schedule a registration interview.

A new job must already be sought during the notice period. The job-search efforts must be documented and later presented to the RAV.

Links:

arbeit.swiss / Further information

Kanton Zug / Unemployment - first steps (DE)

People who no longer receive unemployment insurance benefits may apply for unemployment assistance under certain conditions. This support is granted for a limited period and can help when transitioning to new employment.

Requirements include residence in the Canton of Zug, willingness to work, limited assets and other criteria defined by law.

The Cantonal Unemployment Fund, together with the regional employment centre (RAV), are responsible for processing applications.

Links:

Kanton Zug / Further information (DE)

The regional employment centre (RAV) helps persons re-enter the workforce quickly. Counselling is compulsory if one is receiving unemployment benefits. The RAV also offers classes and employment programmes, some of which are also compulsory.

Persons who have never worked in Switzerland and are looking for a job can also contact the RAV. However, they will not receive unemployment benefits.

Links:

RAV Zug / Registration with RAV

All Swiss residents are required to take out health insurance (basic insurance, Grundversicherung).

Persons moving to Switzerland must do so within three months of arrival. Costs of illnesses arising during this period are covered retroactively.

Basic insurance is offered by numerous private health insurance companies (Krankenkassen) and may be freely chosen. Health insurance companies must accept all residents living in Switzerland.

Insured persons pay a monthly premium. Premiums vary depending on the insurance company and model, so comparing offers is recommended. Changing providers is only possible once a year (in November).

Basic insurance covers the costs of illness as well as pregnancy and childbirth. The benefits are defined by law.

Note: Costs for dental treatment or glasses must generally be paid by the insured person.

Links:

Bundesverwaltung / Further information

Bundesverwaltung / Official calculation of premiums (DE)

ch.ch / Further information

Pamphlet "The Compulsory Health Insurance System (Guide)"

Employees who work more than eight hours per week are automatically insured against accidents at work and during leisure time through their employer.

Persons who work fewer hours are not insured for leisure-time accidents and must arrange their own accident insurance. This also applies to self-employed and non-working persons.

Persons who are not employed must obtain accident insurance through their health insurance provider. Self-employed persons may take out accident insurance with other insurers.

Insured persons pay a monthly premium, which is deducted directly from wages in the case of employees.

Links:

Bundesverwaltung / Further information

ch.ch / Further information

Persons who cannot afford to pay their health insurance premiums may be eligible for a premium reduction (Prämienverbilligung) for basic health insurance.

At the end of January, the Compensation Office Zug (Ausgleichskasse Zug) sends a letter to individuals who are likely entitled to this reduction. Those who do not receive a letter can apply via the online portal.

To receive the reduction, an application must be submitted each year by 30 April. If approved, lower premiums apply for the following year.

The Compensation Office Zug provides information on premium reductions and handles online applications.

Links:

Ausgleichskasse Zug / Contact and information (DE)

In addition to compulsory basic insurance, various supplementary insurances (Zusatzversicherungen) can be taken out. These cover benefits not included in the basic insurance, such as dental care.

Most health insurance companies offer supplementary insurance. Unlike basic insurance, they are not obliged to accept every applicant and may impose certain conditions.

Links:

ch.ch / Further information

Women who are employed when their child is born are generally entitled to paid maternity leave of 14 weeks. During this period, they receive at least 80 per cent of their salary.

Unemployed or incapacitated women should contact the Ausgleichskasse / IV-Stelle Zug (AK Zug) to find out whether they are also entitled to maternity benefits, as special regulations apply.

During the first eight weeks after birth, mothers are not allowed to work by law (maternity protection).

Links:

Ausgleichskasse Zug / Information, forms, and leaflets (DE)

Informationsstelle AHV/IV / Further information (DE)

Bundesverwaltung / Further information

ch.ch / Further information

Mothers in modest financial circumstances can apply for maternity benefits in the Canton of Zug. The support is usually granted for one year after the birth and helps to ease the family’s financial situation.

Eligibility depends on limited income and assets that do not exceed a defined threshold.

The application, together with the required documents, must be submitted no later than six months after the birth.

Links:

Kanton Zug / Further information (DE)

Fathers are entitled to two weeks of paid paternity leave after the birth of a child.

Unlike maternity leave, paternity leave is flexible and can be taken either all at once or in individual days – but only within six months of the child’s birth.

Families in Switzerland receive family allowance (Familienzulagen) as financial support. These consist of:

• Child allowances for children up to the age of 16
• Education allowances for young people in education up to the age of 25

All parents who are employed (including self-employed persons) are entitled to these allowances. Parents who are not employed but have a low income may also be eligible.

For employees, family allowance is paid monthly together with the salary.

Further information is available from the employer or the Ausgleichskasse / IV-Stelle Zug (AK Zug). The amount of family allowance varies from canton to canton.

Links:

Bundesverwaltung / Further information

Informationsstelle AHV/IV / Further information

Ausgleichskasse Zug / Further information (DE)

Social assistance (Sozialhilfe) supports anyone in Switzerland who is in financial need. It covers the minimum living costs and, in addition to financial aid, also offers counselling. The goal is to help people regain their financial independence as quickly as possible.

Social assistance is not provided if other financial resources are available – for example, unemployment benefits, pensions, income, or support from relatives. It also does not cover personal debts.

Social assistance received must be repaid under certain conditions, for example if a person inherits money or wins the lottery. Social assistance is financed by taxpayers.

People who wish to apply for social assistance should contact  social services of their municipality of residence (Sozialdienst der Wohngemeinde). Applicants must disclose their income and assets so that their eligibility can be assessed.

The authorities decide individually on the type and amount of assistance. Providing false or incomplete information is a criminal offence.

Social services may issue instructions and set conditions. If these are not met, payments may be reduced. Participation in counselling sessions is compulsory, and recipients are expected to do everything they can to improve their situation.

Links:

Kanton Zug / Municipalities of Zug