Coverage for employees and employers
Employers can take out voluntary insurance for daily sickness benefits so their employees receive pay although unable to work. Employees are protected while the employer is relieved of cost.
Collective insurance for daily sickness benefits explained - simply and concisely
Inability to work arises when an employee is no longer able to work, yet employers are obligated pursuant to Art. 324a of the Swiss Code of Obligations (OR) to continue their pay for a specific period. Insurance for daily sickness benefits, also known income replacement insurance due to illness, covers the cost of paying staff on sick leave, relieving the employer of financial burden. Employees enjoy the additional benefit that the insurance covers them for a longer period than provided for by statutory law. This avoids financial shortfalls in the period before either returning to work or drawing a disability (IV) or occupational retirement pension (2nd pillar, BVG).
Do you have questions or would you like some advice?
Why the insurance is worth the cost
Ms. A. has been with the company for four years; her annual salary is CHF 85,000. She is on sick leave, temporarily unable to work. Her employer holds insurance for daily sickness benefits covering 80% of her salary. A waiting period of 14 days applies.
FAQs
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Is it required by law to offer collective insurance for daily sickness benefits?
It is not required by law, but is highly recommended because an uninsured employer can incur significant costs during the statutory sick pay period.
Example: Under the scale applicable for the city of Berne, an employee is entitled to 21 days of sick pay, i.e. continuing salary payment in the first year of employment. This number of days increases for every additional year of employment. For an employee who has been with the company for 14 years, the employer would have a sick pay obligation for a period of 150 days. If someone else has to be hired as a replacement, this results in twice the payroll cost. Insurance for daily sickness benefits covers the pay of employees suffering from work incapacity upon elapse of the applicable waiting period, relieving the employer of financial burden.
Who pays the premium?
The insurance premium cost can be shared between employer and employee; the employer generally has to pay at least 50%.
Do I have influence over the premium amount?
Yes. The amount of the insurance premium depends on several factors, including the insured percentage of pay (80 - 100% of the employee’s pay subject to AHV social security contributions) and the length of the waiting period chosen by the employer (7, 14, 30 or 60 days). Preventative measures are recommended wherever possible, to protect employees’ health, which is why we advise and support employers on these aspects of occupational health management.
Less administrative effort
Online claim filing and optional total payroll declaration can help keep your administrative effort to a minimum.
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