Cross-border worker unemployment: Quadri, 'Switzerland should not pay'

Context

In brief

• Switzerland may have to pay unemployment benefits to cross-border workers, with an estimated impact between 500 million and 1 billion francs per year
• Lorenzo Quadri (Lega) presents motion to the Federal Council to avoid this scenario
• Cantons like Ticino, with a high concentration of cross-border workers, may need to strengthen the Regional Employment Centers

Key facts

• What: Motion to prevent Switzerland from paying unemployment to cross-border workers
• When: April 27, 2026
• Where: Bern
• Who: Lorenzo Quadri (Lega)
• Amount: Between 500 million and 1 billion francs per year

The Ticino national councilor Lorenzo Quadri (Lega) has presented a motion to the Federal Council to prevent Switzerland from having to pay unemployment benefits to cross-border workers. According to the agreement with the EU, the benefits would no longer be paid by the country of residence, but by the country of work. Switzerland, with approximately 412,000 cross-border workers, would be heavily affected by this change.

Consequences for Ticino

According to the SECO, cited by the Aargauer Zeitung, the expenditure for Swiss unemployment insurance, in the 'new regime', would vary between several hundred million francs and 1 billion per year. Cantons with a high number of cross-border workers, starting with Ticino, would have to strengthen, at their own expense, the Regional Employment Centers to cope with a mass announcement of cross-border workers. The URCs would therefore have to hire additional resources to place cross-border workers at the expense of unemployed Ticinese.

Concrete examples

• Mendrisio municipality: With over 10,000 cross-border workers, the municipality would have to manage a significant increase in placement requests.
• Lugano municipality: Approximately 20,000 cross-border workers could request placement services, with a direct impact on the municipal budget.

Regulations and dates

• EU-Switzerland Agreement: The regulatory change is scheduled for 2026, but discussions are still ongoing.
• Amounts: Switzerland could have to pay up to 1 billion francs per year for the unemployment benefits of cross-border workers.

Operational checklist

• Impact assessment: Detailed analysis of the number of cross-border workers in each canton.
• Financial planning: Budget for strengthening the Regional Employment Centers.
• Staff training: Courses to manage the increase in placement requests.

Comparison of practical scenarios

• Current scenario: Benefits are paid by the country of residence, with a limited impact on Switzerland.
• New regime: Benefits would be paid by the country of work, with a significant increase in expenses for Switzerland.

Quadri's position

'It is important that the Federal Council immediately clarifies to the EU that Switzerland does not intend to pay unemployment benefits to cross-border workers; therefore, it will not adapt to any changes in this area decided by Brussels.'

Quadri emphasizes the importance of a clear and decisive position by Switzerland to avoid a significant financial burden.

Operational details

Practical Implications for Cross-Border Workers

The modification of the agreement with the EU could have significant consequences for cross-border workers. Currently, unemployment benefits are paid by the State of residence, with a contribution from the country where the cross-border worker has carried out the work activity. If Switzerland were to assume this burden, cross-border workers could find themselves in a situation of uncertainty regarding their rights and the procedures to follow.

For example, a cross-border worker residing in Varese who works in Lugano can currently count on Italian unemployment benefits, with a Swiss contribution. With the proposed modification, the entire burden could fall on Switzerland, radically changing the system. According to 2022 data, approximately 65,000 cross-border workers work in Ticino, 30,000 of whom come from Italy.

Comparison with the Current Situation

Currently, cross-border workers who lose their jobs can rely on the unemployment insurance system of their State of residence. With the proposed modification, this system could change radically. Cross-border workers would have to register with Swiss regional employment offices, which could result in increased bureaucracy and longer waiting times to receive benefits.

For example, a cross-border worker residing in Como who works in Mendrisio might have to face a longer waiting period to receive benefits, moving from an Italian system that provides 75% of the salary for the first 120 days, to a Swiss system that could be less favorable. Furthermore, Switzerland could introduce new regulations, such as the obligation to register in the Swiss unemployment insurance system, with contributions that could be higher than the current ones.

Possible Scenarios

If Quadri's motion were to be accepted, Switzerland could negotiate with the EU to maintain the current system. Otherwise, cross-border workers might have to face a transition period in which procedures and rights might not be clearly defined. This could create confusion and uncertainty among cross-border workers.

📊 Operational Checklist for Cross-Border Workers:

• Verify your registration status in the unemployment insurance system of your country of residence.
• Inform yourself about any regulatory changes in Switzerland and your country of residence.
• Prepare the necessary documentation for any new registrations or changes.
• Contact a tax or legal advisor to clarify your specific situations.

💡 Practical Example: A cross-border worker residing in Bellinzona who works in Chiasso might have to face a transition period in which unemployment benefits could be calculated based on new regulations. For example, Switzerland could introduce a maximum ceiling of 160,000 Swiss francs for unemployment benefits, as provided by current Swiss law.

⚠️ Attention: The modification of the agreement could also influence other aspects of cross-border work, such as tax and pension regulations. It is important that cross-border workers keep themselves updated on any changes and prepare adequately to face any changes.

"Switzerland should not pay for the unemployed of other countries" — Lorenzo Quadri

In conclusion, the modification of the agreement with the EU could have a significant impact on cross-border workers, radically changing the unemployment insurance system. It is essential that cross-border workers inform themselves adequately and prepare for any changes, in order to avoid situations of uncertainty and confusion.

Useful tools to protect your net income

To reduce FX leakage, compare CHF-EUR exchange options and banks for cross-border workers.

Key points

What to Do Now

Cross-border workers residing in municipalities like Chiasso, Mendrisio, or Lugano and working in Ticino should closely monitor official communications from the Federal Council and the Regional Employment Centers (URC). In particular, it is crucial to keep an eye on any changes to unemployment benefits, which could significantly impact cross-border workers. For example, currently, a cross-border worker who loses their job in Switzerland can receive a maximum daily allowance of 196 CHF for 520 days, but any changes could reduce these amounts.

"It is essential that cross-border workers stay informed and prepared for any changes in unemployment insurance procedures."

To prepare, it is useful to create an operational checklist:

• Check your contractual situation and the rights provided by your employment contract.
• Consult the website of the competent URC, such as those in Lugano or Bellinzona, regularly.
• Gather all necessary documentation, such as your latest pay slips and work certificate.
• Contact a tax or legal advisor specializing in cross-border labor law, especially if you reside in municipalities like Novazzano or Stabio, where proximity to the border can complicate procedures.

Useful Tools

To calculate potential unemployment benefits and better understand the tax implications, you can use the salary calculator available on the website. This tool allows you to enter specific data, such as your monthly salary and the duration of your employment, to obtain an accurate estimate of the benefits. For example, a cross-border worker earning 6,000 CHF per month and having worked for 5 years could receive a monthly benefit of approximately 3,920 CHF, but this figure could vary based on future regulations.

Additionally, to compare the differences between unemployment insurance systems in Switzerland and Italy, it is useful to consult the permit comparator. This tool allows you to see the practical differences between the two systems, such as the duration of benefits and the requirements to access them. For example, in Italy, the unemployment benefit (NASpI) is calculated at 75% of the salary for the first 120 days and at 60% for the subsequent days, with a maximum ceiling of 1,335.40 euros per month.

Conclusion

Lorenzo Quadri's motion raises important questions regarding the rights of cross-border workers and Switzerland's responsibilities towards cross-border workers. It is essential that cross-border workers stay informed and prepared for any changes in unemployment insurance procedures. Monitoring official communications, using calculation tools, and comparing insurance systems can make a difference in ensuring economic stability in case of unemployment.

Source: tio.ch