Self-employment: Which types of insurance are mandatory and which are optional but recommended

This page explains which social insurance policies are mandatory for you and your company and which types of insurance can protect your company from financial risks or even insolvency.

Overview of mandatory and voluntary social insurance policies for self-employed persons

Type of insurance For self-employed persons

Contributions (as a % of income)

Old Age and Survivors' Insurance / Federal Disability Insurance / Income Replacement Mandatory 10 %

Family allowance

Mandatory 0.3 to 3.3%, varies from canton to canton
Unemployment insurance (ALV) Not possible  
Pension fund (2nd pillar) Voluntary Up to CHF 45,000 per year
Occupational accident insurance (UVG) Voluntary Depends on the insurance policy
Non-occupational accident insurance (NBU) Voluntary Depends on the insurance policy

The future of employee benefits insurance

What developments and reforms to employee benefits insurance are in store in Switzerland? The pension fund study of Credit Suisse will provide you with the details.

08/11/2022

Overview of mandatory and voluntary social insurance for non-self-employed persons

Type of insurance For non-self-employed persons (joint-stock companies or limited liability companies)

Contributions

Old Age and Survivors' Insurance / Federal Disability Insurance / Income Replacement Mandatory 10.6% (50% each paid by the employer and the individual employees)

Family allowance

Mandatory 0.7 to 3.5%, varies from canton to canton
Unemployment insurance (ALV) Mandatory 2.2% on annual income up to CHF 148,200, 1% for income above CHF 148,200 (50% each paid by the employer and the individual employees)
Pension fund (2nd pillar) Mandatory for annual income of CHF 21,330 and above Between 4% and 16%, depending on age. Employer pays at least 50% of the costs
Occupational accident insurance (UVG) Mandatory Varies depending on the insurance policy. Costs covered by the employer
Non-occupational accident insurance (NBU) Mandatory for more than eight hours per week Varies depending on the insurance policy. The employer can cover costs but is not required to. 

What you need to know about Old Age and Survivors' Insurance

Employees and self-employed persons are liable for contributions starting January 1 of the year after their 17th birthday. The obligation to pay contributions ends at the earliest when the policyholder turns 64 for women, and 65 for men. If you are employed past this age, you are still required to pay contributions.

Contributions by employees, including owners of an AG or GmbH, will be deducted from the salary payment. The company transfers these amounts along with the employer's contribution to the AHV compensation fund.

The employee contributions are deducted from the wage payments and transferred along with the employer's contribution to the AHV compensation fund. The contributions of the owners are calculated at the end of the year based on the profits. To remain qualified for self-employment, you must obtain confirmation from the responsible compensation fund.

1e pension foundation

The attractive pension solution for the extra-mandatory portion of the 2nd pillar.

08/11/2022

Voluntary insurance for companies

To protect your company against the financial consequences of damage or theft, it is advisable to obtain the relevant insurance policies. For instance, you can insure the continuation of salary payments for employees on prolonged periods of sick leave.

If one of your employees is absent due to illness, as an employer you are required to continue the wage payments for up to six months, depending on the canton and the individual employee's term of service. You can absorb this financial risk using a daily benefits insurance policy. For some industries, this daily benefits insurance is mandatory.

Property insurance covers the expenses in the event of a claim, such as damage from water, fire, or theft. The property insurance will also cover any lost income as well as the costs for cleaning and waste disposal.

Motor vehicle insurance is used to protect your company vehicles in the event of any damage or claims for liability.

Employer's liability insurance covers legitimate claims to compensation for investment risk, business and professional risk, as well as product risk and environmental risks.

Legal expenses insurance can cover your financial risks in the event of disputes with clients, suppliers, or employees by handling any court costs.

If your company's business activities can have severe consequences even for the slightest oversight, you will need professional liability insurance. This insurance is mandatory for some professions, such as architects, attorneys, doctors, and accountants.

Directors and officers are liable with their private assets if they breach their obligations and the company incurs a loss as a result. D&O insurance covers this financial risk. Legal assistance is also provided if needed.