Occupational pension fund  |  Planning social insurance when living abroad  | 
Social insurance assets in the case of divorce  |  Child benefit  | 
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Top preloadSocial insurance

The social insurance system in Switzerland is based on three pillars:

  • the first pillar is obligatory for everyone and includes Old Age and Survivors' Insurance (AHV) / Disability Insurance (IV) / Ordinance on Compensation for Loss of Income (EO) and health insurance
  • the second pillar is obligatory for those in employment and includes occupational pension funds, accident insurance and unemployment insurance
  • the third pillar is voluntary and includes qualified savings plans (pillar 3a), free savings plans (pillar 3b) and private health insurance

AHV/IV/EO

Everyone who lives or works in Switzerland is covered by obligatory insurance in the form of Old Age and Survivors' Insurance (AHV), Disability Insurance (IV) and the Ordinance on Compensation for Loss of Income (EO).
The employer pays half of the premium contributions for those in gainful employment. Unemployed persons also have to pay minimum contributions to the AHV/IV and EO. These contributions currently amount to CHF 425.00 per year.
There is one important exception: if you are unemployed and your spouse pays at least twice this amount, i.e. currently CHF 850.00 per year, you are co-insured and do not need to pay contributions of your own.
If you are unable to pay the AHV contributions for the unemployed, the canton or community you live in is obliged to pay your contributions (article 11, paragraph 2 of the AHV law). These regulations apply to all residents, irrespective of whether they are Swiss, foreign or seeking asylum.
If you were already in Switzerland before starting work, e.g. as an asylum seeker or a student, we recommend that you ensure that your AHV contributions have been paid from the date you entered the country. AHV contributions that have not yet been paid can be paid retrospectively within five years. If the subsequent payment of large amounts is difficult for you, try and make arrangements with the social insurance institution to pay in instalments, vide publication "IG Binational Themenheft 2003/1", pages 7 & 11.

back to top Occupational pension fund
From the age of 18 and a gross income of currently CHF 25,320.00, all employees have to pay obligatory contributions to the pension fund. Employers have to pay at least half of these contributions. When an employee changes jobs, the saved money is transferred to the pension insurance of the new employer. Insurance contribution gaps arise if a person in part-time gainful employment does not earn the minimum required annual wages or if a person was older when s/he started work and has not worked for the complete insurance period. The paid-in amounts are reserved for old-age pensions.
Exceptions: The accumulated contributions from employers and employees (capital payment) will only be paid out in the case of definitive emigration to a non-EU/EFTA country, becoming self-employed or purchasing a home.

Pension contribution gaps for binational couples
Foreigners from non-EU/EFTA countries who enter Switzerland as adults have gaps in their AHV and pension fund because of lacking contribution years. Every missing contribution year leads to a reduction in the pension.
Insurance contribution gaps in the first and second columns may be closed by means of the third column. Seek neutral advice on these issues, vide publication "IG Binational Themenheft 2003/1",
pages 7 & 8.

Insurance for newly arrived spouses

  • As is the case for all residents of Switzerland, basic insurance with a health insurance company is obligatory for newly arrived spouses.
  • If the newly arrived spouse does not (yet) have a job, s/he is obliged to take out accident insurance, e.g. as an accident add-on to a policy with a health insurance company.
  • If the newly arrived spouse has a job, the employer is obliged to insure him/her against occupational accidents. If s/he works for more than eight hours a week, s/he will also be insured against non-occupational accidents.
  • As is the case for all residents of Switzerland, newly arrived spouses need to register with the AHV/IV and EO. If you are in gainful employment, the contributions will be automatically deducted from your wages and credited to the personal account. It is recommended that unemployed individuals make regular contributions. (Details under AHV/IV/EO)

vide publication "IG Binational Themenheft 2003/1", page 11.

back to top Social insurance abroad

In the case of cross-border social insurance issues, various regulations apply depending on your citizenship:
a) Citizens of an EU or EFTA country
b) Citizen of a country with which Switzerland has entered into a social insurance agreement
c) Citizen of a country with which Switzerland has not entered into an agreement
d) Special rules apply to refugees and stateless persons. See www.ahv.ch for further information.

a) Citizens of EU/EFTA countries
The Agreement on the Freedom of Movement of Persons entered into between Switzerland and EU and EFTA countries regulates the coordination of social insurance systems. This ensures that a person who works and/or lives in another country does not suffer any negative impact on insurance cover by changing country. Every country has to treat citizens of other countries like its own citizens. The agreement determines, for example:

  • in which country a person has to pay social insurance contributions
  • from which country or countries a person will receive a pension and how it is calculated
  • that services provided in another country in the case of illness and accident are the same as if the person were insured there.

Further information about the coordination of social insurance systems between Switzerland and EU and EFTA countries can be found on
www.soziale-sicherheit-ch-eu.ch.
Or in the following brochures:

  • "Soziale Sicherheit Schweiz" (Social security in Switzerland): information for Swiss citizens and EC citizens in Switzerland
    B_Securite_Sociale_D.pdf.
  • "Soziale Sicherheit in der Schweiz und in der EG" (Social security in Switzerland and the EC): information for citizens of Switzerland or the EC in an EC country
    B_Securite_Sociale2_D.pdf.

b) Citizens of countries with agreements on social insurance payments
Switzerland has entered into international agreements with various countries to regulate social insurance rights and duties. These countries currently comprise: Chile, Israel, Bosnia-Herzegovina, Serbia and Montenegro, Canada, Philippines, Quebec, Croatia, San Marino, Slovenia, Czech Republic, Turkey, Hungary, USA and Cyprus. Citizens of these countries will have their pensions paid abroad if they return there. Leaflets are available from the Swiss Federal Social Insurance Office on every country with which a contract exists. These leaflets can be found on
kurzuebersicht_abkommen.pdf.

c) Citizens of countries without agreements
If your country has not entered into an agreement with Switzerland and if you have paid the insurance premium for at lease one year, you are entitled to request the refund of the premiums, if you return to your country for good. If you do not ask for the refund, you are entitled to a pension, if you live in Switzerland again after reaching retirement age.
You can find further information on Commun/10.03-D-F-I-A.pdf.

We recommend the following brochure for citizens of countries outside the EU/EFTA:

  • "Sozialversicherungen: Aufenthalt in der Schweiz und Ausreise - Informationen für ausländische Staatsangehörige" ("Swiss social insurance system: sojourn in Switzerland and departure - information for foreign nationals")
    bff_deutsch.pdf
    The brochure is also available in German, French, Spanish, Italian, Portuguese, Albanian, Arabic, Russian, Serbian, Tamil and Turkish (Swiss Federal Office for Buildings and Logistics (SFBL), Distribution of Publications, 3003 Berne).

vide publication "IG Binational Themenheft 2003/1", pages 15 & 16

back to top Planning social insurance when living abroad

As a binational couple or binational family, you generally have family connections to at least two countries. If you wish to emigrate in a country outside the EU/EFTA, it is important to include social insurance considerations in your emigration plans. Unforeseen circumstances, such as health problems or political instability in the other country may mean that you (have to) reverse the decision to emigrate.
When living in a country outside the EU/EFTA, you can continue to pay your AHV contributions on a voluntary basis. This applies to Swiss citizens and citizens of an EU country who have been insured with the AHV/IV for at least five years.
Before emigrating, obtain information about social insurance and seek advice. The book "Ratgeber für Auslandschweizer" (Guidebook for Swiss nationals living abroad) provides extremely detailed information.
vide publication "IG Binational Themenheft 2003/1", pages 15 & 16

Social insurance assets in the case of divorce

On 01.01.2000, a law came into force stating that pension fund assets accumulated between marriage and divorce are to be divided equally between the spouses provided the couple selected the system of matrimonial property of participation based on acquisition (Law of matrimonial property). The law does not, however, allow the retroactive application of this right. This means that it only applies to divorces taking place in 2000 and later. It is obligatory that the assets be used for pension provisions. If one person emigrates or returns to a foreign country, the capital can be paid out.
The following should be noted for the AHV: contributions credited during the marriage and education credits for childcare are divided equally between the former spouses and credited to the individual accounts. This is known as AHV splitting. You can obtain application forms for splitting from any AHV Compensation Fund Office. The addresses are on the last page of the telephone directory.

back to top Child benefit

Child benefit is regulated on a cantonal basis in Switzerland. The cantons determine who receives child benefit and the level thereof. Depending on the canton, the benefit currently lies between 150 and 444 Swiss francs per child. Here, the canton you work in is decisive. Entitlement to child benefit exists if at least one parent is in gainful employment or drawing daily benefits from the unemployment insurance fund. The benefits are paid by the employer or the unemployment insurance fund in the case of unemployed individuals. If you work on a part-time basis, you may only receive partial benefit or possibly no benefit at all, depending on the canton. In cantons Appenzell Outer Rhodes, Appenzell Inner Rhodes, Geneva, Graubünden, Lucerne, St. Gallen, Schaffhausen, Schwyz and Uri, self-employed individuals can claim child benefit. In cantons Fribourg, Geneva, Jura, Schaffhausen and Valais, persons not in gainful employment also receive child benefit.

To be able to pay out child benefit, the Family Compensation Fund requires the family register and the child's birth certificate.
The following homepage provides answers to questions about child benefit:
www.bsv.admin.ch
Cantonal regulations on child benefit can be found on
FZ_Tabellen_010104_d.pdf.

Child benefit for children living abroad

Children living in EU and EFTA countries
If you are a citizen of an EU or EFTA country, the bilateral agreements mean that you will receive full child benefit in the country you work in. However, if the other parent in the country the children live in is also in gainful employment, priority is given to the provisions of this country. The other country pays the benefit if the provisions there are greater than those of the country the children live in.

Children living outside the EU/EFTA
Depending on the canton, there are special regulations for citizens of countries outside the EU and EFTA. Thus, some cantons make payment of child benefit dependent on whether your country has entered into a social insurance agreement with Switzerland. Some cantons also have a graduated benefit system adapted to the spending power of the foreign country.
The following applies all over Switzerland: benefits for children living abroad are only paid to asylum seekers when they have obtained a fixed residence status in Switzerland. At this point, outstanding benefits are also paid retroactively.
vide publication "IG Binational Themenheft 2003/1", page 13

Further information is available in the following brochure from the IG Binational syndicate:
"Soziale Sicherheit für Binationale. Die schweizerischen Sozialversicherungen für binationale Paare und Familien im In- und Ausland" (Social security for binational persons. Swiss social insurance for binational couples and families in Switzerland and abroad). This brochure can be ordered from: versand@ig-binational.ch.

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