Sick pay: the system works well (cross-border guide)

Context

In brief

• Federal Council: sickness allowance system is adequate, no changes necessary
• Coverage >85% for companies with 3+ employees, 90% for >50 employees
• Only 0.13% of workers lack protection, mainly in micro-enterprises

Key facts

• What: Federal Council approves report on daily sickness allowances
• When: August 19, 2026
• Where: Switzerland (federal decision)
• Who: Federal Council and the Social Security and Health Committee of the Council of States
• Coverage: 85% of companies with 3+ employees, 90% with 50+ employees
• Excluded: 0.13% of Swiss employees

Bern, August 19. The Federal Council has approved the report in response to postulate 24.3465 from the Social Security and Health Committee of the Council of States, concluding that the current daily sickness allowance system is sufficient and does not require substantial changes.

The investigation examines the coverage rate of daily allowance insurance—the protection that ensures employees maintain their salary when they fall ill. The results show that the situation in Switzerland is overall positive. Coverage exceeds 85 percent for companies with at least three employees and reaches 90 percent for those with more than 50 employees.

Marginal exclusions

Exclusions remain limited. Only about 0.5 percent of companies have not taken out any insurance, in most cases because they were refused admission or no offer was available. This affects approximately 0.13 percent of employees in Switzerland, primarily those employed in micro-enterprises with one or two people. Even in this fragile segment, 44 percent of workers are protected through a policy.

…

Operational details

The Federal Council report photographs a protection system that works for the vast majority of Swiss workers. But photography also reveals significant differences between large and small companies — a relevant element considering that small business is the backbone of the Swiss economy.

Where coverage is strong, where it is weak

In medium and large companies, the system is consolidated. Above 50 employees, coverage reaches 90 percent, a rate that reflects stability and predictability. Even in the 3-49 employee bracket, 85 percent of covered companies report solid penetration. The market has developed competitive offers and insurance companies operate without too many obstacles.

The critical point emerges in microenterprises, those that employ one or two people. Here, 44 percent of the workforce is formally insured, while the rest is not. The known reasons are mainly two: sometimes insurers refuse to underwrite coverage on very small risk shares, or simply do not have an appropriate offer. Yet, even this criticality is mitigated by the fact that many microenterprise owners have internalized the principle of the wage guarantee in the event of illness, maintaining the salary to their collaborators through direct management, without formal insurance.

What “do not change” means to the worker

The choice of

Recommended tools

For an updated estimate, use the net salary calculator and the CHF-EUR exchange comparator.

Key points

According to the Federal Council report, the vast majority of Swiss workers are protected in the event of illness, thanks to coverage spread through insurance, internal regulations or collective agreements. But this statistical guarantee leaves room for individual questions: how does a worker know if he is actually protected?

Check the form of protection

The source of protection varies. Some workers are covered through a real daily allowance insurance taken out by the employer. Others are protected by internal company regulations that guarantee the maintenance of wages in the event of illness — a practice widespread especially in microenterprises. Still others benefit from clauses included in the collective bargaining agreement of their sector. Neither of these forms is \"better\" than the other by federal law; all offer protection.

The first concrete step is to consult your individual employment contract, which should clearly state whether and how you are protected. If the contract refers to an internal regulation or industry provisions, reading those documents will clarify the details of your coverage: duration, amount, conditions.

Cantonal and sectoral variations

The Federal Council report sets the national standard, but execution remains local. Some cantons provide minimum wage protection durations in the event of sickness; others have no such obligation. Collective agreements have

Discover Ticino job offers updated daily: 4,000+ positions from Swiss companies hiring cross-border workers.

Source: admin.ch