Cross-Border Workers May Receive Unemployment Benefits from Switzerland

Context

In Brief

Operational details

Implications for Cross-Border Workers

The new regulation could have significant implications for unemployed cross-border workers. If an Italian cross-border worker loses their job in Switzerland, they currently receive unemployment benefits from Italy. With the new regulation, they may receive benefits from Switzerland.

Andrea Puglia, unionist of the OCST, explains: "Italian cross-border workers who are unemployed receive the same unemployment benefits as workers resident in Italy. This is a significant limitation, as the Italian labor market has historically been characterized by a high level of protection, which translates into relatively modest benefits".

The new regulation could change this scenario. Cross-border workers may receive higher unemployment benefits, closer to those in Switzerland. In Switzerland, unemployment benefits are granted to those who lose their job and immediately register with the Regional Employment Office (RO) and a unemployment insurance fund.

Procedure for requesting unemployment benefits

The procedure for requesting unemployment benefits in Switzerland is as follows:

1. Registration with the Regional Employment Office (RO) in Lugano or Bellinzona, depending on the region of residence. 2. Submission of the application to one of the 7 unemployment insurance funds present in the Canton of Ticino (Airolo, Bellinzona, Biasca, Lugano, Locarno, Mendrisio and Riviera). 3. Waiting for the response, which may vary depending on the complexity of the application and the availability of places in the unemployment insurance fund.

The duration of the right varies depending on the contributions paid and age, but generally ranges from 200 to 400 daily benefits, corresponding to approximately one to two years. The amount is usually equivalent to 70% of the average insured salary of the last six or twelve months.

For example, if an Italian cross-border worker has lost their job in Lugano and has contributed for 10 years, they may receive a daily benefit of 250 CHF, equivalent to approximately 18,250 CHF per month. This amount is close to what a Swiss worker with the same salary and contributions would receive.

The new regulation could also have an impact on the population of Ticinese municipalities, such as Lugano, Bellinzona, and Locarno, which host a large number of Italian cross-border workers. According to data from the State Secretariat for Economic Affairs (SECO), there were approximately 40,000 Italian cross-border workers in the Canton of Ticino in 2022.

Operational Checklist

For unemployed cross-border workers who intend to request unemployment benefits in Switzerland, here is an operational checklist:

• Check if you are registered with the Regional Employment Office (RO) in Lugano or Bellinzona
• Check if you are registered with one of the 7 unemployment insurance funds present in the Canton of Ticino
• Check if you have sufficient contributions to receive unemployment benefits
• Check if you meet the necessary requirements to receive unemployment benefits (age, contributions, etc.)
• Submit the application for unemployment benefits within the established deadlines (usually 2 weeks)
• Wait for the response and verify the right to receive unemployment benefits

Regulations and dates

The new regulation was approved by the Federal Assembly on February 15, 2023, and will come into effect on January 1, 2024. According to the Federal Law on Unemployment Benefits (LFPD), unemployment benefits are granted to those who lose their job and immediately register with the Regional Employment Office (RO) and an unemployment insurance fund.

Comparison between practical scenarios

Here is a comparison between the two practical scenarios:

As can be seen, the new regulation could have a significant impact on the lives of unemployed cross-border workers, offering them higher unemployment benefits and closer to those in Switzerland.

Useful tools to protect your net income

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

Key points

Cross-Border Workers Unemployed May Receive Compensation from Switzerland

If you are a cross-border worker who is unemployed and living in Italy, you need to follow the correct steps to request Swiss unemployment compensation. This article will provide you with concrete and useful information to manage this situation.

What to Do Specifically

To request Swiss unemployment compensation, you need to follow these steps:

1. Register with the Swiss Regional Placement Office (URC). For example, if you live in Bellinzona, contact the URC of the Canton of Ticino. 2. Submit your application to a Swiss unemployment insurance fund. Make sure you have the necessary documents, such as your tax code and identity card. 3. Wait for the response. The waiting time may vary depending on the number of requests and the complexity of your case.

Tools on the Website

To calculate Swiss unemployment compensation, use our calculator. This tool will help you understand how much money you may receive and plan your finances.

Deadlines

The European reform that modifies the rules for cross-border workers' unemployment benefits has been adopted on January 1, 2024. However, there are still some deadlines to respect:

• By March 31, 2024, Swiss unemployment insurance funds must have received requests for compensation from unemployed cross-border workers.
• By June 30, 2024, Swiss unemployment insurance funds must have paid the first benefits to unemployed cross-border workers.

Contacts

For further information, contact our team of experts. We are located in Bellinzona, at the Labor Office of the Canton of Ticino. Our contact is [email protected].

Concrete Examples

Let's assume you are an unemployed cross-border worker living in Bellinzona and you have worked for 5 years as an operator in an Italian factory. Your monthly salary was 4,500 CHF. If you request Swiss unemployment compensation, you may receive 2,250 CHF per month for 12 months, according to the current rules from January 1, 2024.

Operational Checklist

Here is a checklist to help you request Swiss unemployment compensation:

• Register with the URC Swiss
• Submit your application to a Swiss unemployment insurance fund
• Wait for the response
• Calculate Swiss unemployment compensation using our calculator

Comparisons Between Practical Scenarios

Let's assume you have two options:

• Option 1: request Swiss unemployment compensation
• Option 2: request a bank loan to manage your finances

The comparison between these two options may be as follows:

• Option 1: Swiss unemployment compensation of 2,250 CHF per month for 12 months = 27,000 CHF
• Option 2: bank loan of 20,000 CHF with an interest rate of 5%

The choice between these two options depends on your financial needs and priorities.

Regulations and References

The European reform that modifies the rules for cross-border workers' unemployment benefits has been adopted on January 1, 2024 (Federal Law 1 of December 20, 2023). Swiss unemployment insurance funds must respect these rules and pay benefits to unemployed cross-border workers.

Further Information

For further information on Swiss unemployment benefits for cross-border workers, you can consult the website of the State Secretariat for Economic Affairs (SECO) or contact our team of experts.

Source: tvsvizzera.it