Disability Insurance (IV)
IV (Invalidenversicherung) is mandatory Swiss federal disability insurance covering workers who become unable to work due to illness or injury. As an employer, you register employees with the competent cantonal IV office, deduct employee contributions from payroll, and pay employer contributions. It funds rehabilitation, partial pensions, and full disability pensions.
IV is not optional—it is a mandatory pillar of Swiss social insurance. Every employee earning over CHF 1,025 per quarter must be insured. You enroll new hires within 5 days of employment start.
The cantonal IV office handles claims and benefits. Your role is administrative: register workers, remit contributions monthly via payroll deduction, and provide documentation if an employee files a claim.
When IV Comes Into Play
IV activates when an employee cannot work for more than 30 consecutive days due to illness, accident, or disability. The employee or their doctor initiates a claim with the cantonal IV office—not with you directly.
You may be asked to provide employment history, salary information, and job description. Cooperation is mandatory under the Federal Constitution and the Disability Insurance Act (IVG).
- Employee becomes unable to work for extended periods
- Medical assessment determines partial or full loss of earning capacity
- IV pays up to 90% of lost income during rehabilitation
- Partial disability: IV funds retraining or job adjustment
- Full disability: IV pays lifetime monthly pension to worker
- IV also covers family survivors if worker dies from insured cause
Your Legal Obligations
Register every employee with the cantonal IV office when hired. Deduct employee contributions (approximately 0.4% of gross salary) and pay employer contributions (also approximately 0.4%). Both are due monthly via the salary deduction system.
Keep employment records for at least 5 years. If the IV office requests documentation—earnings history, job duties, medical reports—respond within 10 days. Failure to cooperate can result in fines.
- Register new hires within 5 days of employment start
- Pay employer and employee contributions monthly
- Employee contributions are tax-deductible from gross salary
- Respond to IV office information requests promptly
- Inform employees of their IV status and contributions
- Keep salary records and employment contracts for 5 years
The Most Common Mistake
Small employers often delay or forget to register new hires with the cantonal IV office, assuming they will do it later or that part-time workers are exempt. This creates coverage gaps and exposes the company to back-payment claims and fines.
Register on day one. A few minutes in the first week saves months of paperwork and liability. Confirm with your cantonal IV office that registration is complete before the employee's first week ends.
- Delaying registration leaves the employee uninsured
- Employer remains liable for missing contributions retroactively
- IV office may impose surcharges and interest on late payments
- Part-time workers (Pensum ≥10%) are not exempt—they must be registered
- Non-registration voids disability benefits the employee would have received
- Use the standard registration form at your cantonal IV website
Frequently asked questions
- Do I need to register a part-time employee working 12 hours per week?
- Yes. Any employee with a Pensum ≥10% and earnings ≥CHF 1,025 per quarter must be registered with IV. Part-time status does not exempt them. Register all hires within 5 days.
- What happens if an employee becomes disabled—do I have to keep paying their salary?
- No. IV pays the disability benefit directly to the employee. You are not responsible for ongoing salary once IV approves the claim. However, you may owe salary during the initial 30-day waiting period (paid leave or sick pay depends on your contract and cantonal law).
- Can I refuse to hire someone because they might claim IV benefits?
- No. Discrimination on grounds of disability or health status is illegal under the Swiss Federal Constitution and the Equality Act. IV contributions are mandatory and cover all workers equally.
General information for Swiss employers, not legal advice. Have a lawyer confirm anything with legal consequences.