🧾 Social Insurance for Companies in Switzerland – Everything You Need to Know
Anyone founding a company or employing staff in Switzerland must deal with social insurance. But which insurances are mandatory, which are optional — and how can SMEs save money through smart combinations? This article gives you the overview.
🧠 What Are Social Insurances – and Which Are Mandatory?
As soon as a company employs personnel, various legally required social insurances apply. These form part of Switzerland’s three-pillar social security system.
✅ Mandatory social insurances:
- AHV / IV / EO (1st pillar – old-age, disability, and income compensation insurance)
- FAK (family allowances)
- ALV (unemployment insurance)
- UVG (accident insurance)
- BVG (pension fund – from CHF 22,050 annual income)
👉 In certain sectors, daily sickness benefits insurance (KTG) is also mandatory — e.g., in construction or hospitality if a collective labor agreement (GAV) requires it.
⚙️ Which Social Insurances Can Companies Choose Themselves?
Besides the mandatory insurances, companies can opt for numerous supplementary solutions — ideal for risk reduction and employee retention:
- Daily sickness benefits insurance (KTG) – voluntary but often recommended
- Supplementary accident insurance (UVGZ) – better coverage for leisure accidents
- Professional liability & property insurance
- Legal protection insurance for companies
- Cyber insurance
- Insurance solutions for self-employed
🏢 Legal Form & Social Insurance – What Applies for Owners?
| Legal Form | Social Insurances for Managing Directors |
|---|---|
| AG / GmbH | Fully subject like employees (including ALV, BVG, UVG) |
| Sole proprietorship | Only AHV/IV/EO/FAK mandatory. BVG & UVG voluntary |
Tip: Self-employed often secure themselves with flexible pillar 3a solutions or voluntary BVG plans.
💸 What Do Social Insurances Cost?
Premiums are usually split between employer and employee. Expect:
- 10–20% of total payroll as employer’s share
- Accident premiums vary by sector
- BVG contributions depend on the pension plan
- KTG premiums depend on waiting period and benefits
💡 Example: KTG & Accident Insurance in SMEs
- Daily sickness benefits: Usually covers 80% of salary for 720 days (within 900 days).
- Waiting periods of 30, 60, or 90 days reduce premiums — but require liquidity reserves.
- UVG: Occupational accidents are always mandatory; non-occupational accidents (NBU) are mandatory from 8 hours/week.
Important: Suva obligation applies only to certain sectors; others may freely choose their UVG provider.
🔄 Provider Switching & Notice Periods
| Insurance | Notice Period |
|---|---|
| BVG | 6 months to year-end (entry: June 30) |
| KTG | 3 months to year-end (entry: September 30) |
| UVG | Usually 3 months, contract-dependent |
Tip: Only terminate when a new contract is confirmed. Switching KTG can be risky — e.g., with many older employees or ongoing claims.
📈 How Does Insurance Comparison Work?
- Clarify insurance needs (mandatory vs. supplementary)
- Fill out questionnaire
- Receive & compare up to 3 offers
- Use individual consultation
👉 With Compando.ch you get free and non-binding quotes for UVG, BVG, KTG & more — easily online.
🔍 FAQ – Frequently Asked Questions About Social Insurance
Which social insurances are mandatory for companies?
All employers need AHV, IV, EO, FAK, ALV, UVG and (if salary > CHF 22,050) a BVG solution.
Do self-employed need social insurance?
Only AHV, IV, EO & FAK are mandatory. Everything else is voluntary — but strongly recommended.
Is KTG mandatory for SMEs?
Only if a collective labor agreement requires it. Otherwise voluntary — but useful to insure salary risks.
🚀 Conclusion: Properly Insured – Legally, Economically & Socially
With the right mix of mandatory and supplementary insurances, you protect your company, employees — and yourself. Compare providers, customize, and sustainably optimize your social insurance.
