Switzerland is one a few countries with a developed and enhanced social security system that is close knit and supervised. Swiss residents and their dependants working here are offered broad protection against financial risks.
In Switzerland the social security is divided into five major areas, the first is old age, survivors and invalidity insurance. The second, is protection against illness and accidents, the third, is income compensation allowances in case of service and maternity. Fourth, is unemployment insurance, and the fifth, is family allowance.
These diverse types of social insurance benefits are all encompassing, nevertheless the benefits paid out by these different types of social security benefits are financed by contributions charged on income. With health insurance for example, each individual pays a sum of money. The cantons and confederation contribute different amount of money to the social security fund.
The social security system is divided into three pillars, each of these pillars deals with a different aspect. The three pillars of the Swiss social security are old age and survivors/ disability insurance, occupational pension plan, private investment options.
Old Age And Disability Insurance
Old age and disability insurance is mandatory for all Swiss residents, Men 65 years of age and women 64 years of age, are entitled to a pension fund. Payment toward these funds may start one or two years earlier, nevertheless a fee is charged per year. Depending on the circumstances beneficiaries of old age pensions can also get an allowance for a child and/or their spouse.
Occupational Pension Plan/ Accident Insurance
Employees who earn more than CHF 21,150 per year are automatically insured by this insurance program. In Switzerland pension plans and accident insurance have been mandatory for all employees for a long while. This social security benefit covers self-employed individuals, and wage earners with a three months employment contract as well.
Private Investment Options
Individuals who work privately can also benefit from this social security benefit program. The state offers partial advantages including tax advantages along with retirement savings.
Unemployed individuals who have not reached retirement age can get social security benefits, nevertheless certain conditions must be met. You must be employed for 12 months within the two years prior to requesting benefits, have a Swiss residency and work permit and be registered with the regional unemployment office. You may also be required to provide documents that support your active job search.
FERZ SA will explain the various types of social security benefits that may apply to you, call or email us for a consultation.