Unemployment insurance (UI)

Unemployment insurance continues to pay partial salary upon unemployment for a limited amount of time and promotes the re-entry of the unemployed person into the job market. It is mandatory for employees. All workers who are not self-employed must make contributions. Unemployment insurance is financed equally by the employer and the employees (each pays 1%). It is not possible for self-employed persons to insure themselves against unemployment, even voluntarily. In order to receive unemployment benefits, employees must normally be able to demonstrate payment of at least 12 monthly contributions within the last two years, to show that they have worked. Another requirement is that the person must be in a position to take up work. Regular contributions are mandatory. Compensation generally amounts to 70% of the salary subject to OASI (average of the last six contribution months prior to unemployment), or 80% where there are children requiring support, in case of disability or for those with an income of less than CHF 3,797. The maximum insured salary is CHF 10,500 a month. As a rule, a maximum of 400 days’ allowances may be drawn within a two-year period.