Disability and Income Protection: How Switzerland Covers You
IV, pension fund and daily sickness allowance: what they pay and where gaps appear.
6 min read · Insurance & Health
An illness or accident can end your income. Several layers of insurance protect you, but the amounts shrink over time.
The first period: employer and daily allowance
Your employer must continue to pay salary for a limited time, depending on years of service. Many employers have a collective daily sickness allowance insurance that pays about 80 % of salary for up to 730 days. After an accident, accident insurance pays about 80 % of insured salary.
- Expected monthly benefitsCHF 4’200 · 60 %
- Monthly income gapCHF 2’800 · 40 %
Example with default values. Open the calculator →
After that: IV and pension fund
Invalidity insurance (IV) examines rehabilitation before it grants a pension, usually after at least six months of reduced work capacity. A pension is paid from a disability degree of 40 %, in steps up to 100 % at 70 %. The pension fund adds a disability pension, but the total is often only 50–60 % of former income.
Where the gaps are
- Self-employed people often have no daily allowance or fund cover.
- High earners: UVG insures only up to CHF 148,200.
- Part-timers below the BVG entry threshold may have no pension fund cover.
What to do
Check your pension certificate, and consider private income protection if you have dependants, a mortgage or a high lifestyle. Choose a waiting period that matches your savings.
See your potential gap in the disability gap calculator.