Border unemployment reform: 900 million per year (cross-border guide)

Context

In detail

The reform on the unemployment of frontier workers is being reviewed at the State Secretariat for the Economy. It is planned to abolish the system of reimbursement hitherto provided for by the State of last employment at the residence, replacing it with a system of disbursement of unemployment benefit to frontier individuals.

The cost estimate for this reform is between 600 and 900 million francs per year, a significant figure for an economy like Switzerland. For example, the Ticino municipality of Bellinzona, with a population of about 40,000, would spend about 12 million francs a year on this measure, while the Ticino capital Lugano, with 55,000 inhabitants, would spend about 21 million.

This reform could also lead to an increase in the tax burden for border workers, as the unemployment benefit could be higher than the amount currently paid by the State of Labour in Switzerland. For example, a frontier worker who has lost his job in Italy, and who now collects unemployment benefit in Switzerland, could receive a higher benefit than what has already been paid in Italy. This could lead to an increase in the tax burden for the border person and, consequently, for the Swiss tax system.

To ensure a smooth transition and minimize negative effects on the border population, it is important that the Secretariat of State

Operational details

The reform of cross-border work in Ticino could lead to a significant reduction in the unemployment rate, but it could also have another important consequence for the Confederation: the obligation of the State of last employment to monitor the unemployed. According to estimates, the new discipline could cost the Ticino economy almost 900 million francs a year.

The main challenge that arises is to ensure that Ticino companies are able to keep their employees while they are in situations of cross-border unemployment. To address this issue, the State of last employment should take a number of operational measures to monitor the situation of workers and ensure that the right resources and assistance are provided.

For example, companies could be asked to present a detailed list of workers who are in situations of cross-border unemployment and to provide information on the measures taken to help them find new job opportunities. At the same time, the State of last employment could provide financial support and counselling services to help the unemployed improve their skills and prepare for the labour market.

As for the political consequences, the new discipline could lead to an increase in bureaucratic burden for Ticino companies, which could be called upon to manage new processes and procedures to

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Key points

Border unemployment reform: 900 million per year for Ticino

The Border Unemployment Reform is a strategic project of the Federal Office for Mobility (OFM) aimed at facilitating cross-border research and employment in Switzerland. In 2020, the Border Unemployment Cost Estimate calculated an annual cost of CHF 900 million for Switzerland, with a greater impact on border regions such as Ticino.

The impact on Ticino:

• 347,000 jobs were directed to border regions during the 2014-2018 period, with 22% originating from Italy.
• In 2018, 12,860 people benefited from cross-border job search assistance and 66% of these beneficiaries were Ticino residents.
• The Estimated Cost of Border Unemployment calculated an annual cost of CHF 900 million in Switzerland, with a greater impact on border regions such as Ticino. In particular, the cost for Ticino companies has been estimated at 100-120 million

For a precise net salary calculation, use our tax comparator: compare take-home pay between G and B permits with all 2026 deductions.

Source: cdt.ch