staff related insurance
LAA/UVG is a compulsory accident insurance. The Swiss law on accident insurance (LAA/UVG) obliges the employer to insure its employees against the consequences of accidents and workplace illnesses.
Supplemental LAAC accident insurance enhances the compulsory benefits for your employees in the event of an accident. It fills in the financial gap they face and increases your attractiveness as an employer.
Loss of earnings insurance (IJM) covers the financial risk of the employer in case of sickness of the employee on a long term basis. Usually, the employermay choose to cover the 1st or 2nd month on its own risk before the insurance kicks in. This insurance will cover max. up to 720 days of financial risk.
It is important to know that today, the Invalidity insurance authority (AI) will start a basic inquiry after 6 months of absence to favor the reintroduction measure into professional life.
How are these costs split between employee and employer?
If your company aims to have attractive benefits for the employee, the company may cover all costs for LAA/LAAC and IJM loss of earnings.
If not, the split could be calculated as follows:
- LAA – professional accident coverage – paid by the employer
- LAA – non professional accident coverage – paid by the employee
- LAAC – split equally between employee and employer
- IJM – split equally between employee and employer
What do you need to know about payroll management?
You have to obtain from your insurance company or broker the annual ELM and hand it over to your payroll staff provider. ELM provides the full profile of your insurances, including special rebates and coverages. It is very important to obtain it.
In order to estimate the salary costs of an employee, you can use the tool of the FER (fédération des entreprises romandes):
If you hire foreign employees, you will probably have some tax obligations.
Recruiting cross-border workers in Geneva: What you absolutely need to know