LIS variable V2 Mandatory Employer Contributions Contents Employer contribution (national programmes) NB: THIS VARIABLE IS NOT AVAILABLE IN ORIGINAL SURVEY Legislation Coverage All employers. Accidents and Occupational Diseases Insurance (only benefits for occupational accidents and diseases) Old-age and survivors Insurance - AVS / AHV Beneficiary Invalidity Insurance - AI / HI (financed programmes) Occupational Benefit Plans - PP Family allowances (Federal system for agriculturers and cantonal systems) Unemployment Insurance Basis of assessement Wages. Accidents and Occupational Diseases Insurance: net premium rates (corresponding to risk, plus supplmeents for administrative expenses, prevention, etc.) vary between 0.41 and 171.93 per mil of insured salary according to the classification of the business (according to the degree of risk and the specific circumstances of each business); maximum insured salary: CHF 97,200 a year. Old-age and survivors Insurance: 4.2% of the income (no upper limit). Invalidity Insurance: 0.7% of the income (no upper limit). Rate Occupational Benefit Plans: contributions vary between 7 and 18% (depending on age and gender, according to the regulations of provident institutions, which should in ancase honour their commitments) on income between CHF 24,120 and 72,360; the sum of the contributions of the employer should at least be equal to the sum of the contributions of his employees. Family allowances: 2% of the salary (in cash and in kind) in the Federal system, and from 0.1 to 5% of the salary, according to the funds, in the cantonal systems. Unemployment Insurance: 1% of the insured salary, up to a maximum insured salary of CHF 97,200 per year. Collection By withdrawal. LIS variable V11 Income Taxes Direct federal tax (direkte Bundessteuer / impôt fédéral direct) Cantonal income and wealth taxes (kantonale Einkommens- und Vermögerssteuern / impôts Contents cantonaux sur le revenu et la fortune) (national schemes) Municipal income and wealth taxes (kommunale Einkommens- und Vermögerssteuern / impôts communaux sur le revenu et la fortune) Legislation Coverage Beneficiary The Confederation, the cantons and the comunes. Taxable income comprises the sum of all types of income (e.g. from gainful employment, self-employment or net wealth, including family Income taxes allowances) less various allowances for general and business expenses and social security contributions. Basis of assessment Net wealth tax is based on the cash value of the rights held by the taxpayer as owner or beneficiary of receivables, investments and Wealth taxes (movable and immovable) assets. Normally, only net wealth is taxable, i.e. assets minus liabilities. To put it briefly, a tax is imposed on assets calculated in francs, less debts. Income taxes Exemptions Wealth taxes Swiss tax legislation permits various types of allowances. The items for which allowances can be claimed and the maximum amounts that can be claimed very from one canton to another. There are three different types of allowance: Allowances for business expenses: these are allowances for costs incurred directly in generating income (e.g. production costs, interest on business debts). General allowances: the general allowances are deductions for costs Income taxes relating to social policy (contributions to the Federal Old-Age and Survivors' Insurance/Federal Disability Insurance schemes, health insurance, pension contributions, etc.), donations to charitable institutions and (to a certain extent) interest payable on private debts. Deductions Personal allowances: these are allowances made to adjust income taxes to factors affecting the taxpayer's individual financial situation. Factors taken into account are: marital status, number of children or other dependents, disability that reduces income or the ability to work. Net wealth tax is levied on the taxpayer's entire net wealth after deduction of the allowances set in the relevant tax legislation (debts, personal allowances). Allowances for debt: debts can be deducted from total wealth (within the Wealth taxes framework of cantonal legislation). Personal allowances: most cantons permit tax deductions to reflect personal circumstances, e.g. allowances for children, special allowances for older taxpayers. The allowances and exact regulations vary from one canton to another. For both federal and contonal tax, the tax unit is the joint family income; there are three possible units: Tax unit - single tax-payer (without children) - single tax-payer (with children) - married tax-payers (with or without children). The tax schedules of both the direct federal tax and the cantonal taxes, Income taxes have several income brackets (13 or 15 accordint to the type of tax unit), Rate and the rates vary between 0 and 13%. Wealth taxes In Switzerland, taxes on income and net wealth are assessed on the basis of a tax declaration. Every person liable to pay taxes receives a tax form that has to be completed accurately and in full (self-assessment system). The tax declaration normally has to be submitted to the relevant Collection authorities within 30 days. If you miss this deadline, you will be sent a reminder setting a new deadline. If the tax declaration is still not submitted, the tax liability will be estimated by the relevant authorities. LIS variable V13 Mandatory Employee Contributions Contents Social security contributions of employees, self-employed and those not engaged in paid (national programmes) employment Legislation Coverage All employees. Sickness and Maternity Insurance (mandatory health care and voluntary daily allowances) Accidents and Occupational Diseases Insurance (only benefits for non-occupational accidents are financed by employees contributions) Beneficiary Old-age and survivors Insurance - AVS / AHV (financed programmes) Invalidity Insurance - AI / HI Occupational Benefit Plans - PP Family allowances (one cantonal system only) Unemployment Insurance Basis of assessement Insured salary. Sickness and maternity Insurance: the insurer fixes the premiums to be paid by those it insures (thier amount, which must be the same for all insured in the same region, must be approved by the Federal Office of Public Health); premiums for (optional) daily allowances are separate and may depend on benefits and age of insured (but not on other circumstences). Accidents and Occupational Diseases Insurance: the basic gross premium rates of the National Fund for Accident Insurance (CNA) vary between 16.7 and 27.2 per mil, and net premiums of other insurers vary between 9.3 and 19.26 per mil of the insured salary (the maximum insured salary is CHF 97,200 a year); unemployed persons contribute with 43.9 per mil (29.3 directly withdrawn from Rate their daily allowance, and the remaining 16.6 financed by the compensation fund of the unemployment). Old-age and survivors Insurance: 4.2% of the income (no upper limit) for employees, 7.8% for self- employed (reduction to 4.2% if nnual income is below CHF 51,600), flat-rate amount varying according to social conditions between CHF 353 and 8,400 for those not engaged in paid employment. Invalidity Insurance: 0.7% of tte income (no upper limit) for the employees, 1.4% for the self- employed (reduction on a digressive scale), and a flat-rate amount varying according to social conditions between CHF 59 and 1,400 a year for those not angaged in paid employment. Collection Occupational Benefit Plans: contributions vary between 7 and 18% (depending on age and gender, By withdrawal. LIS variable V16 Sickness benefits Daily allowances from Sickness Insurance (Taggelder von Kranken- und Unfallkassen) for: Contents - sickness (incapacity to work) (national programmes) - maternity First law: 1911. Legislation Current legislation: Federal Law on Sickness Insurance, 18 March 1994 (LAMal); Federal Law on General Provisions concerning Legislation on Social Insurances, 6 October 2000 (LPGA). Voluntary social insurance system for all persons living in Switzerland and involverd in gainful activity, over age 15 and less than 65. Coverage An individual contract of employment, a standard contract of employment or a collective labour market agreement may make such insurance mandatory; in this case, the daily allowance insurance may be taken out as a collective insurance contract. Must have an impairment to physical, mental or psychological health which requires medical examination or tretment and results in incapacity Sickness daily allowance to work; the cover may be limited to sickness only (and not accident). Qualifying conditions No qualifying period required. Insured women must have been covered by the insurance for at least 270 Maternity daily allowance days before delivery without an interruption exceeding three months. Waiting period: in the absence of an agreement to the contrary, this benefit becomes payable on the third day following the onset of hte sickness; payment may be delayed on condition that hte premium is Sickness daily allowance reduced accordingly. Duration: up to at least 720 days in a period of 900 days. Benefits Amount: the insurer reaches an agreement with the insured persons on the amount of daily allowance to be insured. Duration: 16 weeks of which at least 8 must be following delivery. Maternity daily allowance Amount: the insurer reaches an agreement with the insured persons on the amount of daily allowance to be insured. Accumulation with other income No restrictions. Adjustment Not applicable. Premiums to be paid by the insured persons, varying depending on the Financing principle fund, benefits for the insured, age of entry and the region. Financing Taxation Contributions LIS variable V17S1 Short-term occupational injury and disease benefits" Daily cash benefit (Taggelder / indemnités journalières) from Occupational Accidents and Diseases Contents Insurance (SUVA - Unfall und Berufskrankheiten / AA - Assurance Accidents) (national programmes) NB: for completeness here are also described the other benefits from SUVA / AA (which it is not clear in which variable they are) First law: 1911 (effective 1918). Legislation Current basic legislation: Federal Law on Accident Insurance, 20 March 1981 (LAA), Federal Law on General Provisions concerning Legislation on Social Insurance, 6 October 2000 (LPGA). Compulsory insurance for all employed persons (persons performing a gainful activity in the sense of the LAVS, see V19S1) working in Switzerland, as well as for all unemployed persons who satisfy the Coverage conditions contained in Art. 8 of the Federal Law on Unemployment Insurance of 25 June 1982 (see V21S1). Voluntary insurance for self-employed persons domiciled in Switzerland. Daily cash benefits are payable in case of accidents (both occupational and non), and occupational diseases. No minimum qualifying period required. Accident: any unexpected and involuntary injury to the human body resulting from an extraordinary external cause which is harmful to physical, mental or psychological health or which leads to death; it can be occupational (if the insured person is victim of it while carrying out duties at the behest of his or her employer or in the latter's interest, and when he or Temporary incapacity she is at his or her place of employment or in a danger zone related to his or her employment) or non-occupational (any other accident, including those on the way to and from work). Occupational disease: any disease due exclusively or mainly to harmful substances or certain types of work (list of substances and types of work) while the insured person is engaged in his or her employment, as well as any other disease which may be proved to be due exclusively or mainly to the professional duties of hte insured person (general clause). An invalidity pension is payable when the insured perons has a degree of nvalidity of at least 10%. Invalidity: full or partial earnings incapacity, presumed to be permanent or of long duration. Earnings incapacity: any reduction of all or part of the insured person's earnings possibilites in a balanced labour market that comes into Qualifying conditions consideration, if this reduction results from physical, mental or psychological impairment and perssists after completion of hte required treatments and rehabilitation measures. Permanent incapacity Lump-sum benefit: when it may be assumed from the nature of the accident and hte behaviour of hte insured person that he or she will recover his or her earnings capacity if he or she receives a single benefit, periodic benefits cease to be paid and hte insured person receives a lump-sum benefit. Integrity allowance: lum-sum awarded in addition to invalidity pension in case of long-lasting injury. Helplessness allowance: payable when a person has permanent need of the help of a third party or personal supervision to carry out basic evryday activites because of health impairment. A surviving spouse pension is payable to: - widow/ers who, on the death of hteir spouse, have one or several children entitled to a pension or who are disabled to teh extent of at leat 2/3; - widow/ers who have one or several children not entitled any more to a pension or who have completed their 45th year; Death - divorecd spouses if threre was obligation to pay alimony from the deceased insured person. A lump-sum benefit may be granted to the surviving spouse instead of the pension. An orphan pension is payable to orphans of father and/or mother. Waiting period: 2 days. Duration: from the 3rd day after an accident occurs, until when the insured person has recovered his or her full working capacity, or when a pension is paid, or when the insured person dies. Amount: 80% of the insured salary if totally disabled (work incapacity over Temporary incapacity 50%); if incapacity is only partial, there is a proportional reduction (half benefit if 26-50%, no benefit if 25% or less); in case of hospital stays, there may be a reduction fo rparticipation in living expenses, except for the insured persons responsible for their children who are minors or who are engaged in studies or apprenticeship. Insured salary: last salary which the insured person received before the accident; this salary is converted in an annual salary and divided by 365. Duration: payable from when it is no lnger reasonable to expect a substantial improvement in teh condition of hte insured person from continuation of medical treatment, and after completion of any necessary rehabilitation measure, until when the pension is replaced in its entirety by a lump-sum benefit, or when it is repurchased, or when the insured person dies. Amount: 80% of the insured salary in case of full invalidity; proportional reduction in case of partial invalidity. Benefits Permanent incapacity Insured salary: the salary which the insured person received during hte year preceding the accident. Lump-sum benefit: lump-sum of up to a maximum of three times the annual insured salary. Integrity allowance: lump-sum graded according to the severity of hte damage to integrity, up to a maximum of the annual insured salary at the time of the accident. Helplessness allowance: 2 to 6 times the insured's maximum daily earnings, according to severity of impairment. Surviving spouse pension: 40% of the insured salary; th epension of a divorced spouse is equal to 20% of hte insured salary, but not more than the alimony which is due. Lump-sum benefit: depending on the duration of the marriage: amount of the annual pension if less than one year, 3 times the amount of hte annual Death pension if between 1 and 5 years and 5 times such amount if more than 5 years. Orphan pension: 15% of hte insured salary if orphan of one parent, 25% if orphan of both. Total for all beneficiaries: in cases where there are several survivors, teh total of such survivors' pensions cannot amount to more than 70% of hte insured salary (90% when they include a pension for a divorced spouse). If there is concurrence with the benefits of the AVS/AI, the accident insurance in principle allows only Accumulation with other a supplementary pension whose amount corresponds to the difference between 90% of hte insured income salary and the AVS or AI pension, but at most to teh amount to which those concerned would have been entitled from teh accident insurance alone. Accident insurance pensions are adjusted at the same time as those of hte basic pension insurance Adjustment (see V19S1). Insurance against non-occupational accidents: whole cost financed by contributions of insured persons (employed, self-employed and Financing principle unemployed). see V13. Financing Insurance against occupational accidents adn diseases: whole cost financed by employers' contributions (see V2). Taxation Contributions LIS variable V18S2 Disability allowances Helplessness allowance from: Contents - Old-Age and Survivors' Insurance (AVS) (national programmes) - Invalidity Insurance (AI) First and current legislation: Federal Law on Old-age and Survivors' Insurance, 20 December 1946 Legislation (LAVS), Federal Law on Invalidity Insurance, 19 June 1959 (LAI), Federal Law on General Provisions concerning Legislation on Social Insurance, 6 October 2000 (LPGA). Coverage See V19S1a. To be domiciled and have permanent residence in Switzerland. To be entitled to and old-age pension or supplementary benefits, to suffer AVS Helplessness from severe or moderate helplessness (permanet need of a third party or allowance personal supervision to carry out basic everyday activities because of health impairment) and not to be entitled to a helplessness allowance under the accident insurance or military insurance schemes. Granted to helpless insured persons who are domiciled and resident in Qualifying conditions Switzerland. Foreign nationals must in addition have paid contributions during at least one complete year or have been domiciled in Switzerland without AI Helplessness interruption during at least 10 years. allowance No entitlement while staying in an institution fo rhte execution of rehabilitation measures. Minor insured persons are not entitled if they only need support for the practical daily activities. AVS Helplessness Amount: 80% of the minimum old-age pension amount if degree of allowance helplessness if severe, 50% if it is moderate and 20% if it is slight. Duration: from onset of helplessness condition (birth at the earliest), until the insured person receives an old-age pension of the AVS. Amount: 80% of the maximum old-age pension amount if degree of Benefits helplessness is severe, 50% if it is moderate and 20% if it is slight (half AI Helplessness these amounts if living in an institution). allowance Supplement for intense care: supplement varying bewtween SFR 430 and 1,290 (2005 amounts) depending on number of daily hours care is needed, granted to minor insured persons who, moreover, need intense care and do not live in institutions. Accumulation with other May not be received in concurrence with helplessness allowance from Military Insurance or from income Accident Insurance (AA). Adjustment Same as old-age pensions (see V19S1a). Financed exclusively by public authorities (percentage of annual insurance expenditure from both Confederation and Cantons, percentage Financing principle of total annual revenue of the VAT and revenue of the tax on gambling Financing clubs). Taxation Contributions LIS variable V19S1a Universal old-age pensions Ordinary pensions from Old-Age and Survivors' Insurance (AHV / AVS) and Invalidity insurance (IV / AI), incl.: Contents - ordinary old-age pension (national programmes) - ordinary survivors' pensions (widows' and widowers' pension and orphans' pension) - ordinary invalidity pension First and current legislation: Federal Law on Old-age and Survivors' Insurance, 20 December Legislation 1946 (LAVS), Federal Law on Invalidity Insurance, 19 June 1959 (LAI), Federal Law on General Provisions concerning Legislation on Social Insurance, 6 October 2000 (LPGA). Compulsory insurance for all persons who are domiciled or engaged in paid employment in Switzerland (incl. Swiss national working abroad for the federal gvernemnt, for international organisations with whom the Federal Council has concluded a headquarter agreement, or for private volunteer organisations that receive substantial support from the government). Coverage Optional insurance for Swiss national and citizens of the EU or EFTA Member States who live in a non-EU or non-EFTA Member State and who are not subject to compulsory insurance any longer after an uninterrupted period of 5 years and for persons who were insured (without minimum insurance period) in case they work abroad for a Swiss employer, or in case they study abroad if aged under 30. For Swiss nationals: to have reached the age of 65 (men) or 62 (women, gradually increased to 64 in 2005) provided at least one complete year of contributions may be taken into account (contributions must have been made in all years since age 21 for a full pension). Ordinary old-age For foreign nationals: as for Swiss nationals, provided they maintain pension their domicile and permanent residence in Switzerland. Early payment: persons who have fulfilled the claim prerequisites for an ordinary old-age pension may obtain payment one or two years early. Deferment of no less than one year and no more than five years is possible. Ordinary widows' and widowers' pension is payable to: - widows and widowers who, on the death of their spouse, have one or several children (special providsions for foster children); - widows who have no children (nor foster children in the sense of the Ordinary survivors' special providsions), provided that they have completed their 45th year pension and were married for at least five years; - divorced persons provided they fulfill certain conditions. Qualifying conditions Ordinary orphans' pension is payable to children whose father or mother are deceased; when both parents are deceased, the orphans are entitled to two pensions. For Swiss nationals: to have the possibility of one complete year of contributions being taken into account. For foreign nationals: as for Swiss nationals (or 10 years of residence in Switzerland without interruption); they have to maintain their domicile and permanent residence in Switzerland. Must have had an invalidity of at least 40% on average during one year without significant interruption. Invalidity is full or partial earnings Ordinary invalidity incapacity, presumed to be permanent or of long duration; earnings pension incapacity is any reduction of all or part of the insured person's earnings possibilities in a balanced labour market, if it results from physical, mental or psychological impairment (due to either congenital disease, sickness or accident) and persists after completion of the required treatments, and rehabilitation measures. Iinsured persons who were not in paid employment before being affected by the impairment are deemed disabled if the impairment prevents them from carrying out their usual activities. Full pension: flat amount (SFR 8,924 a year if average annual income equal or less than SFR 36,180, otherwise SFR 12,542) plus a variable amount (calculated by multiplying annual income by 13/600 if average annual income equal or less than SFR 36,180, or 8/600 otherwise); from a minimum of SFR 1,005 to a maximum of SFR 2,010 a month. Partial pension: percentage of full pension according to relationaship between the insured's years of contributions and those of their age group. Average annual income: income from paid employment upon which contributions have been made (the contributions of persons not engaged in paid employment are converted and counted as income Ordinary old-age from paid employment; income earned by spouses during the calendar pension years of their marriage are divided half to each spouse), bonuses from child raising (3 times of the amount of the annual minimum old-age pension for each of the years during which the insured person has exercised parental authority over one or several children aged below 16) and bonuses for care-taking (3 times of the amount of the annual minimum old-age pension for each of the years during which the insured person has cared for family members who are entitled to an AVS/AI helplessness allowance and who live in the same household). Years of contributions: years during which an insured person has paid contributions, years in which the spouse of an insured person (the latter not having engaged in paid employment or having eworked in an enterprise belonging to the spouse without cash payment) has paid at Duration: from the first day of the month following the death of the deceased insured, until death or remarriage for widows, until the youngest child reaches the age of 18 for widowers, until completion of Benefits the 18th year (25th in case of apprenticeship or studies), or, if earlier, until death. Ordinary survivors' Widow/ers' pension: 80% of the old-age pension corresponding to teh pension revalued average annual income, with a minimum and a maximum amount. Orphan's pension: 40% of the old-age pension corresponding to teh revalued average annual income, with a minimum and a maximum amount. at the earliest, from the month following the 18th birthday of Duration: hte insured person, until when the person is no longer disabled, or when he or she is entitled to an old-age pension, or death. Types of pension: full pension if the degree of invalidity is at least 70%, three-quarter if at least 60%, half if 50% and quarte pension if 40%. Amount: calculation formula similar to that of hte old-age pension, depending on the avergae annual income and the years of contributions, with a minimum and maximum amount. Average annual income: income from paid employment, bonuses for Ordinary invalidity child-raising and bonuses for care-taking. pension Years of contributions: if hte persons has, at the time when invalidity occurs, paid contributions for hte same number of years as that of his or her age group, he/she is entitled to a complete pension, otherwise the pension is reduced (partial pension). Minimum pension: if the insured person has a complete period of contribution payments and is less than 25 yyears of age when the invalidity occurs, the invalidity pension is at least 133 1/3% of the minimum amount of hte corresponding complete pension. Child pension: persons receiving an invalidity pension are entitled to a child's pension for each child who would be entitled to an orphan's Old-age and invalidity pensions are not cumulable. Survivors' pensions continue to be paid when there is entitlement to an old-age or invalidity Accumulation with other pension, as long as its amount is higher. income Concurrence with invalidity pensions of the accident and occupational disease insurance is possible; these may be reduced in case of over-insurance. Adjustment of pensions, in principle every two years to the development of wages and prices by Adjustment adapting the pension index; early adjustment when the consumer price index has increased by more than 4% in one year. Financed by contributions of employees, employers, self-employed and persons not engaged in paid employment (see V2 and V13), plus Financing principle participation by public authorities (percentage of annual insurance Financing expenditure from both Confederation and Cantons, percentage of total annual revenue of the VAT and revenue of the tax on gambling clubs). Different contributions for AVS and AI. Taxation Contributions LIS variable V19S1b Employment-related old-age pensions Contents Old-age, survivors and invalidity benefits from Occupational Benefit Plans (national programmes) First and current: Federal Law on Occupational Benefit Plans concerning Old-age, Survivors a Legislation Invalidity, 25 June 1982 (LPP). Compulsory insurance for the risks of old-age, invalidity and death for employed persons over age of 17 (24 for old-age risk) who receive from the same employer an annual salary of more Coverage CHF 24,120. Optional insurance for employed and self-employed who are not subject to compulsory insura Old-age benefits Survivors' benefits Qualifying conditions Invalidity benefits Old-age benefits Benefits Survivors' benefits Benefits Invalidity benefits Occupational Benefit Plans pensions are supplementary to the 1st pillar pensions. Accumulation with other Invalidity and survivors' benefits may be reducedd to the extent that, when added to other inco income to be taken into account (similar benefits), they exceed 90% of the annual income which it ma thought that the insured person is deprived of. Survivors' and invalidity pensions which have been running for more than thre years are adjus for the first time to development of prices at the beginning of the calendar year which follows; Adjustment subsequent adjustments take place at the same time as adjustments to AVS pensions. The other pensions are adjusted to the development of prices according to the financial possib of the provident institution. Financing principle Financing Taxation Contributions ployment-related old-age pensions vivors and invalidity benefits from Occupational Benefit Plans ent: Federal Law on Occupational Benefit Plans concerning Old-age, Survivors and June 1982 (LPP). nsurance for the risks of old-age, invalidity and death for employed persons over the for old-age risk) who receive from the same employer an annual salary of more than rance for employed and self-employed who are not subject to compulsory insurance. Men must be 65 year old and women 64; early retirement is possible if the regulations of hte provident institution allow for it (in principle not earlier than 5 years before the legal retirement age) Granted on the death of the insured employment person to : - surviving spouse who, on his or her spouse's death, must support at least one child, or has reached the age of 45 and has been married for at least 5years; - children under 18 (25 if in apprenticeship or studies, or if disabled) of the deceased, including foster children; - under certain conditions, other beneficiaries as appointed by teh regulations of the provident institutions. Persons who are disabled to the extent of at least 50% (2/3 for a complete pension) in the sense of the Invalidity Insurance (see V19S1a) and who were insured when the incapacity to work which led to invalidity arose. Retirement assets: old-age credits (calculated on the coordinated salary - the rate in % varies according to the age of the insured person) related to teh years during which the person was insured by the provident institution, including the interests; plus the possible departure benefit (including the interests). Old-age pension: calculated in % of the retirement assets (conversion rate, with a minium of 7.15% for men and 7.2% for women). Capital benefits: when the pension is lower than 10% of the minimum 1st pillar old-age pension, or if the regulations of the provident institution allow for it. Child's pension: persons receiving an old-age pension are entitled to a child's pension (whose amount is equal to that of hte orphan penisino) for each child who would be entitled to an orphan's pension on the death of such persons. Widow/ers' pension: 60% of hte full invalidity pension to which teh insured person was entitled. Orphan's pension: 20% of hte full invalidity pension to which teh insured person was entitled, for each child. Capital benefits: when the widow/er's pension is lower than 6% (2% for orphans) of hte minimum 1st pillar old-age pension, or if hte regulations of hte provident institutino allow for it. Invalidity pension: calculated on the basis of hte same conversion rate applicable to old-age pensions, considering retirement assets the insured person accumulated at the time he or she became entitled to an invalidity pension and considering the total old-age credits for the years remaining, without the interests. Capital benefits: when the pension is lower than 10% of the minimum 1st pillar old-age pension, or if the regulations of the provident institution allow for it. Child's pension: persons receiving an invalidity pension are entitled to a child's pension (whose amount is equal to that of hte orphan penisino) for each child who would be entitled to an orphan's pension on the death of such persons. Benefit Plans pensions are supplementary to the 1st pillar pensions. survivors' benefits may be reducedd to the extent that, when added to other income nto account (similar benefits), they exceed 90% of the annual income which it may be he insured person is deprived of. d invalidity pensions which have been running for more than thre years are adjusted me to development of prices at the beginning of the calendar year which follows; adjustments take place at the same time as adjustments to AVS pensions. nsions are adjusted to the development of prices according to the financial possibilities ent institution. Financed by employers' and employees' contributions (see V2 and V13). No participation of public authorities. LIS variable V19SR State old-age and survivors benefits n.e.c. Extraordinary pensions from Old-Age and Survivors' Insurance (AHV / AVS) and Invalidity Contents insurance (IV / AI), incl.: (national programmes) - extraordinary survivors' pensions - extraordinary invalidity pension First and current legislation: Federal Law on Old-age and Survivors' Insurance, 20 December 1946 Legislation (LAVS), Federal Law on Invalidity Insurance, 19 June 1959 (LAI), Federal Law on General Provisions concerning Legislation on Social Insurance, 6 October 2000 Coverage Same as for Ordinary pensions (see V19S1a). Granted to Swiss nationals who have their domicile and permanent residence in Switzerland, when the minimum periof of contributions required for entitlement to an ordinary pension does not exist and when the beneficiary or hte deceased insured person has nevertheless been insured during the same number of months as that of his or her age group. Qualifying conditions Survivors' penions: in case of widows, widowers and orphans, entitlement to an extraordinary survivors' pension arises only when the insured event concerning a deseased person occurred before teh latter completed his or her 21st year. Invalidity pension: persons disabled since birth or since childhood and domiciled in Switzerland are entitled to extraordinary invalidity pensions. Benefits Old-age and invalidity pensions are not cumulable. Survivors' pensions continue to be paid when there is entitlement to an old-age or invalidity Accumulation with other pension, as long as its amount is higher. income Concurrence with invalidity pensions of the accident and occupational disease insurance is possible; these may be reduced in case of over-insurance. Adjustment of pensions, in principle every two years to the development of wages and prices by Adjustment adapting the pension index; early adjustment when the consumer price index has increased by more than 4% in one year. Financed by contributions of employees, employers, self-employed and persons not engaged in paid employment (see V2 and V13), plus participation by public authorities (percentage of annual insurance Financing principle expenditure from both Confederation and Cantons, percentage of total Financing annual revenue of the VAT and revenue of the tax on gambling clubs). Different contributions for AVS and AI. Taxation Contributions LIS variable V20S1 Child allowances Contents Cantonal family allowances, incl. children's allowances, vocational training allowances, birth (national programmes) allowances and household allowances Legislation There is no general federal law governing family allowances, but a variety or cantonal regulations. In general entitlement is linked to the occupational situation of the parents: non-farm employees are entitled to family allowances without exception; under certain conditions, those who are self- Coverage employed are entitled to family allowances in 10 cantons, as are those not gainfully employed in 5 cantons. In some cantons, self-emplyed farmers and agricultural workers may receive supplementary family allowance in addition to those provided under the Federal LFA (see V20SR). Payable until the child has reached his 16th year (25th for apprentices and students, 18th, 20th or Qualifying conditions 25, according to canton, in cases of sickness or disability); various cantons have introduced restrictive regulations concerning children who live abroad. Children allowance: flat-rate amounts depending on the canton (1999 values: CHF 140 to 294 a month for each child according to canton). Vocational training allowance: higher allowances replacing the children's allowances in certain Benefits cantons, for students and apprentices (1999 value: CHF 145 to 378 a month). Birth allowance: lump-sum (depending on canton) in the case of birth in 10 cantons (replaced by the welcome allowance in case of adoption); 1999 values: CHF 600 to 1,500 a month). Household allowance: flat-rate amount in addition to children's allowances (in two cantons only). Accumulation with other income Adjustment Financed by non-agricultural employers' contributions (in one canton - Financing principle Valais - also employees contributions) (see V2 and V13). Financing Taxation Family allowances are taxable. Contributions None. LIS variable V20SR Child / family benefits n.e.c. Contents Federal family allowances for farmers (national programmes) Federal Law on Family Allowances in Agriculture, 20 June 1952 (LFA) Legislation Federal Law on General Provisions concerning Legislation on Social Insurance, 6 October 2000 Coverage Agricultural workers and small-scale farmers. Children's allowance: payable in case of children under 16 (20 if disabled but not entitled to a full invalidity pension, or 25 if in education or apprenticeship) in the following circumstances: children of Qualifying conditions married or unmarried parents, adopted children, children of a spouse, foster children, brothers and sisters of a beneficiary for whom he or she is hte main means of support. Household allowance: payable in case of dependent spouse. Children allowances: CHF 160 a month for each of first two children (CHF 180 in mountain regions) and CHF 165 for third and each subsequent child (CHF 185 in mountain regions); the amounts for small-scale farmers also depend on other incomes (with incomes above certain threshold reducing Benefits the amount fo the family allowance). 1999 values: CHF 140 to 294 a month for each child according to canton. Household allowance: fixed flat rate amount (CHF 100) for married agricultural workers only. Accumulation with other income Adjustment Financed by agricultural employers' contributions (see V2) and Federal Financing principle government (residual cost for agricultural employees and whole cost for Financing small farmers). Taxation Family allowances are taxable. Contributions None. LIS variable V21SR Unemployment compensation benefits n.e.c. Benefits from the Unemployment Insurance (ACI), incl.: - unemployment allowance Contents - reduced working hours allowance (national programmes) - bad weather allowance - allowance in case of insolvency of the employer - financial benefits for active labour market programme First law: 1924. Current basic legislation: Federal Law on Compulsory Unemployment Insurance and Allowances Legislation in case of INsolvency, 25 June 1982 (LACI); Federal Law on General Provisions concerning Legislation on Social Insurance, 6 October 2000 (LPGA). Employees subject to compulsory insurance under LAVS (see V19S1a) up to teh age giving Coverage entitlement to an AVS old-age pension and who do not receive an early AVS old-age pension. The insured person must: be unemployed or partly unemployed, be subject to a job loss of at least two consecutive days, together with a loss of salary; be domiciled in Switzerland; have completed compulsory schooling; neither have reached the age giving entitlement to an AVS old- Unemployment age pension nor receive such a pension; comply with the conditions allowance concerning the contribution period (12 months within the reference period for contributions, which is 2 years per case of unemployment, with possible extension of 2 or 4 more years) or be exempted from this requirement (persons who have not been able to be under work contrct because of certain training, illness, accident, detention, etc); be available for recruitment; and comply with the control requirements. The insured person must be subject to an unavoidble loss of work due to economic factors and of at least 10% of the total usual working hours of Reduced working hours hte company; no leave must have been given; and hte reduction in Qualifying conditions allowance working hours must probably be temporary and should allow to keep the jobs concerned. The insured person must be subject to an loss of work declared by teh employer, which is exclusively due to meteorological conditions; Bad weather allowance continuing to work must be technically impossible despite adequate protection measures, must give rise to disproportionate costs or cannot be required from employees. The insured person must have salary claims toward his or her employer Allowance in case of when a bankruptcy procedure is opened against the latter or must make insolvency of the a seizure request for salary claim against his or her employer within a employer period of 60 days from the publication o teh bankruptcy or teh execution of the seizure. Financial benefits for Active labour market programmes aim at facilitating the occupational active labour market integration of isured persons whose recrruitment is difficult because of programme the state of the labour market. 5 days a week. Form: daily allowance granted Waiting period: 5 days of general waiting period plus 120 days for persons under 25 years exempted from the contribution period conditionc, who have no dependent children and who have not completed any vocational training; 5 days for the other persons exempted from teh contribution period conditions; 1 day for the insured persons coming to an end of a seasonal job or a profession in which changes of employer are frequent or working relationships last for a limited period. Duration : up to a maximum of: 400 daily allowances if the insured Unemployment person proves a contributory period of 12 months at least; 520 as from allowance 55 years if the insured person proves a contribution period of 18 months at least; 520 if the insured person receives a pension of the AI or the compulsory accident insurance and if he or she proves a contribution period of 18 onths at least; 260 daily allowances for persons exempted from the contribution period conditions; insured persons who have become unemployed in teh 4 years preceding the age giving entitlement to an AVS old-age pension and who are very difficult to recruit are entitled to 120 supplementary daily allowances at most. Calculation of allowances: 80% of the insured salary (70% for insured Benefits persons who have no child maintenance and receive a full daily Waiting period: 3 days for each accounting period (1 accounting period = 1 month). Duration: 12 accounting periods at most over a 2-year period; the two- Reduced working hours year period begins on the first accounting period for which the allowance allowance is granted; 4 accounting periods for loss of work greater than 85% of the usual working hours of the company. Amount: 80% of the last salary (up to a certain maximum) before the beginning of the reduction in working hours. Waiting period: 3 days for each accounting period (1 accounting period = 1 month). Bad weather allowance Duration: 6 accounting periods at most over a 2-year period. Amount: 80% of the last salary (up to a certain maximum) before the beginning of the loss of work. Allowance in case of insolvency of the Duration: up tp a maximum of 4 months. employer Amount: 100% of effective salary claims (up to a certain maximum). Financial benefits for active labour market Allowances for introduction to work, traiing allowances, support to programme insured persons who start a self-eemployed activity. Unemployment benefit can be partial (if not being under work contract and seeking a part-time job, Accumulation with other or of having a part-time job and seeking to replace it with a full-time job or to supplment it with income another part-time job). Adjustment Not applicable. Financed by employees and employers contibutions (see V2 and V13), Financing principle plus a contribution of the Confederation. Financing Taxation 29.3 per mil contribution for Accidents and Occupational Diseases Contributions Insurance. LIS variable V23 Military/Veterans/War Benefits Financial benefits from Military Insurance, incl.: Contents - income maintenance benefits (national programmes) - invalidity pensions - survivors benefits Legislation Military insurance covers all persons who suffer an accident or become ill during military service, Coverage civil protection or community service. Daily allowances: granted to the persons who undergo a temporary loss of earnings due to an occurrence covered by the Military Insurance. Delayed professional training allowances: granted in case the professional training is delayed by at least 6 months by an event covered Income maintenance by the Insurance. benefits Self-employed persons allowances: supplementary allowance for self- employed persons, who cannot cover the fixed costs of the business or who cannot maintain he business. Rehabilitation allowances: Invalidity pension: granted if the pursuit of medical treatment does not allow any sensible improvement of the health conditin of the insured Qualifying conditions person, and if the earnings incapacity is presumed to be permanent of of long duration. Invalidity pensions Old-age pension for disabled insured: when a person receiving an invalidity pension reaches the normal retirement age (according to AVS), the invvalidity pension is converted in old-age pension. Integrity allowance: Survivors' pension: granted to the spouse, divorced spouse, the children and in some cases the parents of the deceased insured. Reversed survivors' pension: if the death is not due to an event isured by the Military insurance, but the deceased peroson was receiving an Survivors benefits invalidity pension of at least 40% since at least 5 years, the MIlitary insurace can grant a pension if the other social insurance benefits were notably diminished. Funeral grant. Daily allowances: 95% of the lost earnings in case of total incapacity (with specific rules for the determination of the loss of earnings of housewifes/men, students, apprentices, etc.). Income maintenance Delayed professional training allowances: 10% of maximum ceiling for benefits insured earnings. Self-employed persons allowances: depending on the circumstances. Benefits Rehabilitation allowances: depending on the circumstances. Invalidity pension: 95% of annual insured earnings for total invalidity. Invalidity pensions Old-age pension for disabled insured: half of the invalidity pension. Survivors' pension: 40% of deceased person's annual isured earnings for wodow/ers, 20% for divorced spouses, 15% for orphans (25% in case of Survivors benefits full orphans). Funeral grant: lump-sum amount (CHF 13,380 in 2005). Accumulation with other income Adjustment Pensions are periodically adapted to with teh evolution of wages and prices. Financing principle Funded from the federal budget, with no obligation to make contributions. Financing Taxation Not taxable. Contributions LIS variable V24SR Other social insurance benefits n.e.c. Compensation for loss of earnings during military or civil service (Erwerbsausfallenentschädigung Contents bei Militärdienst und Zivilschutz - EO / indemnités pour perte de gain durant le service militaire et (national programmes) de protection civile - APG) First and current legislation: Law on compensation for loss of earnings of 25 September 1952 (Loi Legislation sur les allocations pour perte de gain - LAPG). Anyone working for the Swiss Army (including women's militrary service, the Red Cross and the Coverage emergency services - or carrying out civilian or protection service, or taking part in national or cantonal "Youth and Sport" leadership courses or junior marksman leadership courses. No specific qualifications required (also payable to people who were not previously employed and Qualifying conditions even to those who were living abroad). The amount depends on previous earnings. Students are normally classed as not being employed; as such they must - depending on the circumstances - exxpect to start at a lower rate than employed persons. Benefits A person who is unemployed or working short hours will be paid according to his or her last income; when EO benefits are lower than those paid by unemployment insurance, the person doing military service can claim the difference from his or her unemployment office. Accumulation with other No cumulation allowed with income from labour or unemoplyment benefits (unless they top up a income lower EO benefit). Adjustment Not applicable. Financing principle Financing Taxation Contributions LIS variable V25S1 General social assistance benefits Contents Financial support from Social welfare (national programmes) There is no general federal law governing social assistance, but a variety or cantonal regulations. Legislation They all tend to satisfy the recommendations fo the Swiss Conference of Public Assistance Institutions (CSIAP). Coverage Universal. The Federal Constitution guarantees the right of those in need to assistance. Anyone who gets into difficulty and is not in a position to provide for himself/herself is entitled to help and care, and to the Qualifying conditions funds which are essential to uphold human dignity. Social welfare is granted when the needy person cannot help himself/herself, and when help from third parties is not available or cannot be provided quickly enough. The help must not be made dependant on the causes of the situation. Duration: as long as there is need. Amount: differential amount between income and minimum amounts fixed by the canton regulation. The Swiss Conference of Public Assistance Institutions (CSIAP) lays down recommended amounts for the minimum amounts, including: - basic amount (varying from CHF 1030 for one person, to CHF 3,070 for 7 perons, plus CHF 285 Benefits for each additional person), which is intened to be the minimum necessary to satisfy the basic needs such as, food, clothing, energy, maintenance, purchase of current goods, health care, transport, communication, leisure and training, body care, personal equipment; - complementary amount: lump-sum of CHF 206 for each person after the third over 16; - additional amounts, such as housing costs, basic health care costs, and any costs arising from specific circumstances. Accumulation with other income Not applicable. Adjustment Fincanced from public authorities (federal governemtn gives subsidies to Financing principle the cantons). Financing Taxation Not taxable. Contributions None. LIS variable V25S2 Old-age and disability assistance benefits Contents Supplementary benefits to old-age, survivors' and invalidity insurance (Ergänzungsleistungen (national programmes) AHV/IV / prestations complémentaires de l'AVS/AI) Federal Law on Supplementary Benefits to AVS/AI, 19 March 1965 (LPC); Federal Law on General Legislation Provisions concerning Legislation on Social Insurance, 6 October 2000 (LPGA) Coverage Same as for AVS / AI (see V19S1). Personal status: generaly speaking, supplementary benefits are additional to AVS/AI pensions; but in some cases they are paid regardless of entitlement to a pension; benefiiciaries must be domiciled and permanently resident in Switzerland; foreign national may claim supplmentary benefits only provided they have lived in Switzerland for 10 years without interruption immediately preceding the date from which they apply for the benefits (5 years for refugees and stateless persons). Qualifying conditions Income situtaion: the amount of supplementary benefits corresponds to the excess of hte expenses of a person over and above his or her income (a maximum amount is laid down); as the purpose is to cover basic needs, not all expenses incurred are taken into account, and the LPC includes an exhaustive list of such expenses; a distinction is made between those receiving supplementary benefits while resideing in an institution and those who receive them while living at home; income taken into account may include pensions, allowances and other period benefits, return on assets, the substance of assets owned, income from paid employment, family allowances and alimony, as well as resources and assets relinquished by their owners. Annual supplementary benefits (paid monthly) correspond to the excess of expenses over income, up to a maximum ceiling. Benefits The yearly amounts covering the basic needs are as follows (2005 amounts): CHF 17,640 for a single person, CHF 26,460 for a couple, CHF 9,225 for each of the first and second child, CHF 6,150 for each of the third and fourth child, and CHF 3,075 for each subsequent child from the fifth. Accumulation with other income Adjustment Federal subsidies to cantons, covering from 10 to 35% of their expenses Financing principle according to teh financial capacity of each canton; the difference is borne Financing by cantons and municipalities. Taxation Contributions LIS variable V25S3 Unemployment assistance benefits Contents Unemployment assistance (Arbeitslosenhilfe für Ausgesteuerte / indemnités pour chômeurs en fin (national programmes) de droit) There is no general federal law governing unemployment assistance, but a variety or cantonal Legislation regulations. Coverage Same as for Unemployment Insurance (see V21S1). Depending on cantons: generally must have exhausted eligibility for unemployment insurance Qualifying conditions allowance. Often must satisfy a means-test. Benefits Varying amounts and durations according to personal situation and canton. Accumulation with other income Adjustment Financing principle Financing Taxation Contributions LIS variable V25SR Social assistance cash benefits n.e.c. Contents Subsidy for the payment of sickness insurance contributions (Prämienverbilligung - Krankenkassen (national programmes) / subsides pour le paiement des primes de l'assurance-maladie - SPAM) Legislation Federal Law on Sickness Insurance, 18 March 1994 (LAMal); regulations of each individual canton. Coverage Universal. The LAMal foresees a targeted reduction of mandatory sickness contributions for persons with low Qualifying conditions incomes through subsidies allocated by the Confederation and the cantons. Qualifying conditions depend on cantonal regulation. Benefits The amounts depend on cantonal regulation. Accumulation with other income Adjustment Financed by public authorities (annual subsidies from the Confederation Financing principle to the cantons). Financing Taxation Not applicable. Contributions LIS variable V26S2 Near-cash housing benefits Contents Housing benefits (national programmes) There is no general federal law governing housing benefits, but a variety or cantonal or communal Legislation regulations. Coverage Universal. Qualifying conditions Generally targeted to families with children, elderly persons or low income persons. Depending on the cantons or the municipalities, the support can consist of a direct individual allowance, od af indirect individual subsidy linked to the object 8 eduction of rent in public housing), Benefits of a personalised subvention to housing (proportional to income), of a housing allowance for tenants of non subsidised dwelling whose rental cost represents a too high burden. Accumulation with other income Adjustment Financing principle Financing Taxation Contributions The present document draws extensively from the following sources: 1. Web site of the Federal Social Insurance Office (http://www.bsv.admin.ch) 2. Web site of the Public Administration (www.ch.ch). 3. Social Security Programs Troughout the World, 1999 (www.ssa.gov/policy/docs/progdesc/ssptw/1999/index.html).
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