Europe's news in English

COPY LINK

HEALTH

‘Highest unemployment in decades’: How coronavirus hit the Swiss job market

The impact of the coronavirus pandemic on the Swiss job market has become clearer in recent weeks, with Swiss unemployment levels at record highs.

Published: 20 August 2020 17:26 CEST

'Highest unemployment in decades': How coronavirus hit the Swiss job market

Unemployment has skyrocketed in Switzerland in 2020. Photo: ERIC BARADAT / AFP

The current employment rate is the lowest its been since 1993, with 85,000 fewer people employed now than at the same time in 2019.

Switzerland’s Federal Statistical Office, which puts together the figures, also found that those who are employed are working fewer hours – a decrease of 9.5 when compared to the same period last year.

READ: How coronavirus has devastated the Swiss job market

In total, there are 223,000 unemployed people in Switzerland.

The crisis has hit younger people particularly hard, with the employment rate for people aged between 15-24 climbing from 6.2 percent to 8.4 percent, compared to 4.2 to 4.6 percent among the general population.

Locals hit harder

Native Swiss have been harder hit by the pandemic, with the number of employed Swiss falling by 2.4 percent compared to 0.2 percent for foreigners.

People on short term work permits were the hardest hit, with a 16.2 percent drop in employment.

Member comments

Log in here to leave a comment.

Become a Member to leave a comment.

How can a foreign resident apply for Swiss disability insurance?

Disability insurance (DI), also known in Switzerland as ‘invalidity’ insurance, may sound as though you have to be physically handicapped in order to be eligible to receive this benefit.

But that is not so.

It is intended to replace lost income if you can’t work for long periods of time due to health problems — whatever the type of your ailment.

According to a government brochure on this subject, “the law defines invalidity as a total or partial incapacity to work or inability to perform previous tasks. The reason for the invalidity must be an impairment of physical, mental or psychological health that cannot be overcome with medical treatment and reintegration measures. Possible causes of the health impairment are a congenital infirmity, an illness, an occupational disease or an accident.”

Are foreigners eligible for this insurance?

Everyone working Switzerland, regardless of the nationality, is insured for DI when they pay their compulsory social security contributions.

Note, however, that you will be entitled to draw full amounts (read more about this below) only if you contribute into the social security scheme from the time you turn 21 without any gaps.

You will receive these payouts for as long as you remain in Switzerland

However, if you move away, there will be some differences based on whether you come from the EU / EFTA states (Norway, Iceland, Liechtenstein), or a third country.

Nationals of EU / EFTA have the same DI rights as Swiss citizens — they will continue to receive the benefits even if they move back.

But if you come from elsewhere, benefits may be limited once you return to your country of origin, if that country doesn’t have a social security agreement with Switzerland.

How can you apply for these benefits?

In order to receive the DI, you will first need to complete an application form for IV/AI benefits (form available in German, French and Italian).

You will have to provide various documents, including medical certificates and other relevant paperwork detailed in the form that will allow authorities to determine whether you are eligible to receive disability in the first place and, if so, how much (see below).

It is in your interest to register as soon as possible.

If you wait too long, your benefits may be reduced.

How much can you expect to receive?

These payments are intended to cover your essential needs, so don’t expect huge amounts.

The benefits are determined by two factors: your average salary before you become disabled, as well as the degree of your disability, which will be determined by health professionals designated by your social security office.

Logically, the more (and longer) you earned and contributed into the system, the more you will receive.

Generally speaking, the lowest possible full DI pension is currently 1,225 Swiss francs per month.

The highest is 2,450 francs per month — if you earned 86,040 francs or more per year and you have paid uninterrupted contributions from age 21.

What if these amounts are not enough for you to live on?

In this case you could receive supplemental benefits at a level considered adequate to maintain a reasonable standard of living.

Whether or not you are eligible for these benefits depends on your combined income and your personal wealth. You can only receive supplemental benefits as long as you live in Switzerland, though — unlike the basic DI, they are not transferable abroad.

Url copied to clipboard!