State insurance
Old age and survivors insurance OASI (AHV)
The AHV is a general state insurance, compulsory for all individuals residing or employed in Switzerland, and it is the most important insurance within the social security system. Excluded are persons with a special agreement, e.g. a cross-national agreement. Contributions are split 50:50 between employee and employer. Self-employed persons pay directly to their local compensation fund. Unemployed persons pay an AHV premium depending on their assets.
Important: The unemployed spouse is released from these charges if the employed partner pays in double of the minimum premium.
Income substitution scheme (EO)
The income substitution scheme is a compulsory insurance for all individuals in Switzerland. If you serve in the Swiss Army or do alternative civilian service, this scheme indemnifies you for loss of earnings. Both employers and employees contribute to the EO.
Obligatory insurances / procured by the employer
Accident insurance AI (UVG)
If an individual is employed more than 8 hours per week, a 24-hour coverage for accidents applies. Employers pay the premiums for occupational accidents. Children and individuals who are not gainfully employed have accident cover included in their health insurance or take out separate accident insurance.
Unemployment insurance UI (ALV)
Employees are insured against loss of income through unemployment on a compulsory basis.
Occupational pension
Old age insurance under the 2nd pillar is based on individual savings. The savings process sets in when the insured person reaches the age of 25 and presupposes an annual income over the established threshold. The savings process comes to an end when the insured person reaches retirement age. The savings assets accumulated by the insured person on his individual savings account over the years serve to finance the old-age pension.