Swiss Social Security System

Swiss Social Security System (Sozialversicherungen)

The social security system in Switzerland is essentially a three-pillar system. It aims to safeguard a reasonable quality of life for the elderly, in the event of invalidity, illness and accident. In addition, the social insurance system provides financial support for family members if the insured person dies.

Further, the insurance system covers risks such as the cost of illness and accidents, unemployment as well as family allowances. The following list provides an overview of the various social insurance pillars in Switzerland.

Social insurance is mostly financed by direct deductions from individual wages. The contributions are based on an individual’s income. They are carried “”on a parity basis,”” half by employers and half by employees. The only exception is health insurance, where income independent head premiums are paid. In addition, there are also contributions from the public sector, for example old age pensions and disability pensions are financed by 5% from tobacco tax.

Social security services in Switzerland includes:

• Unemployment insurance (German: Arbeitslosenversicherung, ALV; French: Assurance-chômage, AC; Italian: Assicurazione contro la disoccupazione, AD), normally directly deducted from salary if resident is employed
• Income compensations (German: Erwerbsersatzordnung, EO; French: allocations pour perte de gain, APG)
• Family allowances (German: Familienzulagen, French: allocations familiales)
• Disability insurance (German: Invalidenversicherung, IV; French: Assurance-invalidité, AI; Italian: Assicurazione Invalidità, AI) normally directly deducted from salary if resident is employed
• Accident insurance (German: Unfallversicherung, French: assurance-accidents)
• Health insurance (German: Krankenversicherung; Italian: Assicurazione malattia) – compulsory for nearly all residents
• Pension funds
  • First pillar: state insurance (German: Alters- und Hinterlassenenversicherung, AHV; French: Assurance-vieillesse et survivants, AVS)
  • Second pillar: professional insurance (German: Berufliche Vorsorge, French: prévoyance professionnelle)
  • Third pillar: personal insurance (German: 3. Säule, French: 3ème pilier
• Social assistance (German: Sozialhilfe; French: aide sociale; Italian: assistenza sociale)
• Additional services