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Swiss Payroll: towards a revolution in employee protection ? (CH)

Your Abacus partner explains the potential impact of this change

Dear professionals, a major transformation is on its way for the Swiss labour market.
Imagine an environment where every employee enjoys greater financial security in the event of illness. This is precisely what the recent Swiss parliamentary initiative is proposing, and it could mean the end of the Bern, Zurich and Basel scales as we know them.
Under article 324a of the Swiss Code of Obligations (CO), sick employees receive their salary for a fixed period, but only after three months’ employment. At present, this is managed either by the cantonal scales or by collective insurance. The cantonal scales vary according to seniority, offering up to 3 months’ salary after 5 years’ service. Group insurance, on the other hand, guarantees at least 80% of salary for up to 730 days, with the premium partly covered by the employer.
The Swiss National Council recently approved a motion for a new law requiring employers to insure all employees against loss of earnings in the event of illness. The aim of this measure is to offer more uniform protection, avoiding the current disparities. However, it raises questions, particularly for small businesses, about the financial impact of this obligation.

How will this affect payroll management?

At Ekspert – Swiss Payroll Specialist and Abacus Partner – we are keeping a close eye on these legislative developments to offer you payroll management and outsourcing solutions that anticipate these changes. Our expertise enables us to adapt your company’s payroll practices, ensuring compliance and financial optimisation in the changing legislative landscape.
Do these changes represent an opportunity or a challenge for Swiss companies?
How is your company preparing to navigate this new framework?
At Ekspert, specialists in Swiss payroll management, we’re here to help!

Our Customer Team is at your disposal for any enquiries you may have.