An essential guide to being unemployed in Switzerland
Lost your job in Switzerland? Here's what you need to know about navigating the country's "tough but fair" unemployment system.
Losing your job is stressful at any time, but if it happens when you are away from home, it can be even tougher.
Fortunately, though, Switzerland’s unemployment system is generous and you won't be thrown out onto the street.
Generally speaking, if you are a foreigner but have a Swiss work/residence permit and you have been making compulsory unemployment insurance payments for at least 12 months over the last two years, you will be entitled to receive unemployment benefits.
In addition, you could also receive benefits if you have had a serious reduction (at least two days a week) in your working hours.
You are also entitled to those benefits if you resign from your job, although there will almost always be a waiting period before you can receive any unemployment money.
However, self-employed people cannot pay into the unemployment insurance system. They are covered by different arrangements.
Benefits totalling 70–80 percent of previous salary
Generally speaking, you will receive 70 percent of your salary for the last six months you worked – or 80 percent if you have dependants under the age of 25. This will be capped at CHF196 per day.
This cover will last for up to a maximum of 24 months, depending on how long you have been paying into the system and other factors including your age.
Your benefits are tallied in days: if, for example, you have been paying into the system for 12 months, you will generally get 260 days unemployment cover. For 18 months, the standard cover is 400 days.
It’s important to note you will only receive benefits if you earned at least 500 Swiss francs a month while you were working. Benefits are also capped at 10,500 Swiss francs (around €9,400) a month.
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As an additional benefit, you will also be entitled to holiday leave while you are unemployed (five days for every 60 days of benefits). During these holiday periods, you don’t have to provide proof you are looking for work. This leave must be taken in taken in a block and you must inform the authorities 14 days in advance.
Under the Swiss unemployment system, women are also entitled to 14 weeks of maternity leave. After a referendum in 2020, men are entitled to two weeks of paternity leave.
You will also receive benefits if you are ill while out of work, although the maximum amount is 44 days in total (with only 30 days of those in a row).
No special treatment
The Swiss unemployment system is best described as fair but tough. The emphasis is on bridging the gap between jobs and on getting people off benefits as soon as possible – even if that means finding people jobs that they might not might not be their ideal first choice.
If you do find yourself on unemployment benefits in Switzerland, you will have to complete a lot of detailed paperwork. This must be fully correct and provided on time or there could be financial penalties. There’s more on that below.
And ignorance of the rules is definitely no excuse with the unemployment authorities. Do not expect any kind of special treatment.
You will be kept busy
You should also be aware that you will not be allowed to coast along while receiving Swiss jobless benefits. Looking for work is considered a full-time business.
As one Local reader said: "You don't have time to be lazy".
In addition to your job search activities, your unemployment adviser may recommend courses ranging from language or IT classes to sessions on job hunting. Attendance at these courses is compulsory, even if you feel doing so is not in your best interests or a waste of time. Again, failure to participate is likely to lead to financial penalties.
Finding work is your responsibility
There is a relatively common misconception that Swiss government employment advisers are there to find you a job. This is not exactly the case. Their role is to assist in you in your own job search by providing feedback on your CV or by helping you identify jobs that may be appropriate for you. They are also there to guide you through all the relevant processes and paperwork.
However, they are not job agents who will place you in a position. Swiss culture in general places an extremely high value on personal responsibility and in the end, you are considered responsible for your own job search. You must be proactive.
KNOW YOUR OBLIGATIONS
Here are some more tips to help you hit the ground running when you find yourself out of work in Switzerland.
Start applying for jobs as soon as you are given notice
It is important to realise that you have to start looking for work as soon as you are given notice. So even if you have a three-month notice period to serve out in your current position, you should begin looking for another job immediately.
During you first consultation with the unemployment office, you will have to be able to provide verifiable evidence that you have already applied for around eight jobs. Keep as much information as possible about any jobs you apply for including the contact details of any person you may have corresponded with.
If you don’t provide evidence of this job search, you will have to wait before you start receiving benefits.
Register as unemployed as soon as possible
Don’t wait to finish out your notice period before you register as unemployed. This can be done while you are still working and your employment consultant can already begin assisting you with your job search.
Among the benefits is access to jobs only advertised to Swiss-based workers.
To find out where to register as unemployed, contact authorities in the commune where you live. You will either have to register with the commune or directly with the nearest regional employment centre (RAV/ORP/URC).
You must register in person and by your first day of unemployment at the latest. If not, there will be a waiting period before you are paid.
Have all your paperwork ready
If you register with your commune, you will need to take your national insurance (AHV/AVS) card and official identification.
If you are required to register directly with the RAV/ORP/URC, you also need to take your work permit as well as the documentation related to your job search including your CV, references, diplomas, degrees or certificates.
In addition, you will need to take along a copy of your most recent employment contract, your resignation or termination letter and any medical paperwork if applicable.
After you have registered, you will receive confirmation by mail that you are in the system.
Complete the paperwork
Once you are on the books, you will receive two forms a month to fill in – one from your unemployment insurer asking about any updates to your employment status and another where you fill in the details of your job search. These forms will generally arrive on around the 20th of the month.
A sample monthly job seeker form.
The form for the AHV/AVS authority must be returned as soon as possible.
For the RAV form, this must be submitted by the fifth day of the following month, or the first business day after the fifth of the month. If not, it will not be accepted. Late submission can also result in payment being docked.
You are generally expected to be able to show that you have applied for 10–12 jobs a month but the exact figure will be determined by your RAV/ORP/URC advisor.
You will have regular meeting with your unemployment adviser which you must attend unless you have a valid excuse such as illness.
While you are registered with the RAV/ORP/URC, you must be reachable within 24 hours by email, phone or the post.
You also have to make sure that you inform the RAV/ORP/URC as soon as there any changes in your circumstances which could affect your payments. This could range from being ill and unable to work, to earning interim wages or changing your address.
Be prepared to take on any ‘reasonable’ job
While you are receiving unemployment benefits, you must be ready to start working the following day.
You must also accept any reasonable job offer, even if the job does not exactly line up with your previous experience and the hours you are being offered are not those you would like to work. You may also be in for a pay cut.
Under Swiss law, a “reasonable” job offer relates to any position where the wages are in line with regional, job and industry standards, standard employment conditions are met, the commute is not more than four hours and the job takes reasonable account of the skills and employment background of the person looking for work.
However, regional unemployment centres have a certain amount of elbow room here and exceptions can be made depending on personal circumstances of job seekers. A single mother would not, for example, be forced to take on irregular shift work or make long commutes.
You are encouraged to take on temporary work while unemployed. If you do so, you are likely to take home slightly more money and you will also use up your full quota of benefit days more slowly.
However, you will still be registered as unemployed and must continue your job search.
Be aware of the penalties
You could have your benefits suspended if you refuse a reasonable job offer, don’t try hard enough to find work, fail to attend a RAV/ORP/URC interview without a valid excuse, fail to submit job search documents, or submit them late, provide false or incomplete information, or fail to attend or complete a course or job program.
These penalties for failure to comply can add up quickly. For example, a five-day penalty for someone who was earning 5,000 francs a month before they went on benefits would be in the region of 900 francs.
In the case of repeat offences, you could even be stripped of your benefits altogether.
Staying on in Switzerland
European Union and EFTA nationals can generally stay on in Switzerland if their residence permit expires while they are unemployed, but they will need to be able to demonstrate they have enough money to fund themselves and that they have health insurance.
Legally they are entitled to stay for three months, but this period can be extended.
Usually permits will be renewed for the standard five-year timeframe. However, in the case of the long-term unemployed – over 12 months – permits will generally only be renewed for a single year.
For other foreign nationals, you will generally be given six months to find work in Switzerland.
Anyone who is required to leave Switzerland due to their work permit expiring as a result of losing their job will also need to take their family with them. Family residency permits connected to someone's work will expire when the work permit is no longer valid.