What Swiss law says
In Switzerland, the employer must continue to pay wages when an employee is prevented from working through no fault of their own, particularly in the event of illness, if the employment relationship lasted more than three months or was concluded for more than three months. Without insurance, the legal regime of art. 324a CO provides for the payment of full salary for a limited period, determined according to seniority and the scales applied by the courts.
Daily sickness benefit insurance is not mandatory at the federal level, but it is often recommended and can be imposed by a collective employment agreement or a standard contract. It makes it possible to replace or supplement the obligation to maintain salary if the agreed plan is written and offers at least equivalent benefits.
Why a collective IJM?
Without insurance, an SME directly pays the salary during the absence, sometimes in addition to the cost of a replacement. With loss of salary health insurance, the insurer takes over after the agreed waiting period and pays daily allowances according to the coverage chosen.
Market solutions generally cover 80%, 90% or 100% of the insured salary, often up to 720 or 730 days, less the waiting period. Funding is frequently shared between employer and collaborators, but the exact rules must be provided for in contracts and regulations.
Important decisions
- Percentage insured: 80%, 90% or 100% of the salary depending on your HR policy and your budget.
- Waiting time: 7, 14, 30, 60 days or other variation; the longer it is, the lower the premium, but the more the employer finances the start of the absence.
- Duration of services: often 720 or 730 days, to be coordinated with the LPP and possible disability.
- Insured salaries: payroll, ceilings, bonuses, commissions and management cases.
- Premium financing: employer part, employee part and clear mention in contracts.
- Free passage: possibility of switching to individual insurance when leaving the company depending on the conditions.
Pay attention to equivalence
For insurance to validly replace the legal salary maintenance scheme, it is not enough to have a policy. The employment contract, regulations or CCT must clearly provide for the essential elements: risks covered, percentage of salary, duration of benefits, financing of bonuses, waiting period and reference to general conditions. Otherwise, the employer may remain exposed to the legal regime or have to assume a poorly documented promise of coverage.
Coordination with other insurance companies
- LAA: covers occupational accidents and illnesses, not ordinary illnesses.
- BVG: intervenes in the event of disability or death according to pension fund regulations.
- Maternity APG: separate plan, to be coordinated with any additional company benefits.
- Independents: Without appropriate coverage, the loss of sickness income often falls directly on the individual.
- CCT: certain sectors impose minimum conditions for loss of earnings health insurance.
Who is this a priority for?
This coverage is particularly important for SMEs with several employees, companies subject to a CCT, companies where a few key people carry out the activity, employers who want to remain attractive and self-employed people who cannot afford a long absence without income.
Our support
Finwise compares IJM offers according to your payroll, your sector, your CCT, your absence history, your desired waiting times and your HR policy. We also check consistency with your employment contracts, your LAA and your professional pension.