Loss of earnings insurance is a fundamental pillar of Swiss social protection, ensuring financial security for employees in case of illness or accident. This is an exception, as similar insurance systems internationally cover between 50% and 75% of the salary (in Germany and France) for a shorter duration. The Swiss system underscores employers' commitment to preserving not only health but also the economic stability of their employees. This article details the legal framework and the real impact of these insurances on the lives of Swiss workers.

How Swiss employers commit to their employees' health

In Switzerland, the loss of earnings insurance system illustrates employers' total commitment to preserving the health and financial stability of their employees, reflecting a corporate culture focused on respect and care for staff. Employers play a crucial role as true financial shields, protecting their teams from income losses due to illness or accidents. Each year, about 4% of Swiss workers benefit from these benefits, significantly improving their quality of life in case of work incapacity. Studies conducted by institutions such as the University of Zurich reveal that companies offering better health insurance coverage record a low absenteeism rate, thus contributing to a significant improvement in productivity, estimated on average at an increase of 5%. Companies with superior coverage often observe higher rates of return to work post-convalescence, highlighting the effectiveness of this legislation. However, this insurance system represents a considerable cost for employers, with annual expenditures reaching up to 4 billion Swiss francs, including not only indemnity payments but also productivity losses for companies. In response to changing work conditions, notably the increase in teleworking, insurance policies are also being adapted to better cover musculoskeletal disorders and other conditions related to more sedentary work environments.

A robust legal framework to strengthen corporate culture

The Swiss Federal Law on Accident Insurance (LAA) plays a crucial role in complementing loss of earnings insurance. It requires employers to insure all employees who work more than 8 hours a week with the same employer, covering accidents both professional and non-professional. This insurance is vital, reimbursing up to 80% of the employee's salary during periods of incapacity due to an accident or illness, until work is resumed or until the end of contractual coverage. It acts as an essential lifeline that keeps one afloat. However, coverage for illness often depends on the size of the company and the collective employment contract.

Take the example of Boulangerie du Lac in Lausanne, where employees receive benefits after a month of incapacity. Conversely, TechGlobal SA in Zurich offers immediate coverage without a deductible for a maximum duration of 1000 days, including professional rehabilitation programs to facilitate the reintegration of employees. Moreover, self-employed individuals, not automatically covered by classic social insurances like the LAA, are particularly vulnerable. A legislative debate is currently underway to better integrate them into the Swiss social security system, aiming to provide them with sufficient financial protection. Likewise, cross-border employees face specific challenges, as telework regulations require adjustments in bilateral agreements between countries. Negotiations are ongoing to adapt these agreements and ensure adequate coverage of workers based on their country of residence or work, responding to labor market evolutions.

Ensuring financial stability: the importance of coverage duration

In Switzerland, the standard duration of coverage for loss of earnings due to illness generally varies between 720 and 730 days. However, in sectors more exposed to risks, like construction in Geneva, extensions of coverage reaching 1000 days are frequently granted, in response to the accident rate higher than the national average of 15%, according to figures from the Swiss Federal Office of Statistics. On the other hand, employees in the pharmaceutical sector in Basel, enjoying safer working conditions, benefit from shorter coverage periods. Consequently, their premiums are about 20% higher than the average of other sectors, according to data from the Swiss Insurers Association.

Comprehensive comparison: analysis of offers from insurance leaders

When selecting a loss of earnings insurance, Swiss employers and employees have a wide range of options offered by some of the market leaders in insurance. Here we examine the proposals from three major Swiss insurance companies: Zurich Insurance, AXA Winterthur, and La Mobilière. These analyses highlight variations in coverage terms, premiums, and additional services offered, helping interested parties make an informed choice based on their specific needs and risk exposure.

How does loss of earnings insurance work in practice?

● Small Watchmaking Enterprise in Neuchâtel: an employee suffering from a chronic illness benefits from coverage allowing them to receive 80% of their salary during absences, up to 900 days over three years. This measure allows them to fully concentrate on their recovery without worrying about finances, thus contributing to better long-term health management. 

● Technological Company in Zurich: following an accident during a company event, several employees benefited from comprehensive medical and salary coverage until their complete recovery. This support not only aided the employees in their convalescence but also boosted their morale and loyalty to the company during this difficult period.

These examples illustrate that choosing the right loss of earnings insurance is not just a legal or financial obligation; it is also a crucial strategy for human resources management. It plays an essential role in supporting employees when they are most vulnerable, while protecting the operational interests of the company.

Towards a modern and inclusive society: keys to current developments

Loss of earnings insurance in Switzerland continues to adapt to meet the changing needs of society. Initially set up in 1953 to cover absences related to military, civil, or civil protection service, this individual insurance has evolved significantly. It has been extended to include new categories of beneficiaries and play an increased support role for Swiss families through various life stages. Since 2005, the allowance for loss of earnings (APG) primarily covers maternity leave, offering mothers 80% of their average income before birth for a duration of 14 weeks. To benefit from these allowances, a mother must be affiliated with the AVS (Old Age and Survivors Insurance) and have worked at least 5 months during the year preceding the birth. Paternity leave, introduced in 2021, offers ten days of paid leave to new fathers, marking a significant advancement in their recognition during the early days of a child's life, with adoption on the rise since its introduction.