Insurance

  • Health Insurance - Mandatory for all employees and residents in Switzerland, for more information see our article on Medical
  • Accident Insurance - Individuals who are not employed  take out accident insurance together with their health insurance.  Employees on the other hand are insured for accidents in the workplace according  to the provisions of the LAA (the law concerning accident insurance) by their employer.  Contributions for occupational accident cover are chargeble to the employer on a monthly basis from the salary.  Contributions for non-occupational accident cover are deducted by the employer on a monthly basis from the salary
  • Third Party liability Insurance (RC) - If you either rent an apartment, buy a house or drive a car then it is a legal requirement to take out this insurance and when renting a property in Switzerland proof of cover will be required by all agencies. 

Pensions

Within Switzerland the pension system is broken down into 3 parts, termed 3 pillars.

  • 1st pillar is a mandatory state pension scheme and contributions are income-dependent.  Once you have contributed for 12 months you will be entitled to a partial state pension from Switzerland when you reach retirement age.
  • 2nd pillar is a mandatory company pension scheme and contributions are income- and age-dependent.. The capital can be transferred to a foreign pension plan, upon permanent departure from Switzerland, or used to start a business or buy a principal residence in Switzerland or the EU. You may also make additional contributions as a tax-saving measure. While there is a legal mandatory requirement for your employer to deduct at source the money is paid into a private not state policy by your employer
  • 3rd pillar is an optional top-up personal pension plan, available from banks and insurance companies, which has some tax advantages. Up to a certain level, the amount paid in reduces your annual taxable income base, therefore making it extremely tax efficient.