Unemployment Insurance (ALV)

Unemployment insurance, like the Old Age and Survivors' Insurance (AHV), is a mandatory Swiss social insurance.

Equal Sharing of Contributions to Unemployment Insurance

Employers and employees share the costs of unemployment insurance equally. In principle, all employers and employees are obliged to pay ALV contributions. There are only a few exceptions: thus, family members working in agriculture are exempt. Similarly, women and men who have reached the ordinary retirement age no longer have to pay contributions. The contribution rate is up to a limit of 126,000 CHF 2.2% (each 1.1%) of the total wages, thus a maximum of 2772 CHF.

The employers submit the ALV contributions, which come from both their own contribution and the employee's contribution, along with the amounts to the AHV, IV, and EO. Employers are responsible for the payroll deduction. Should they forget the payroll deduction, they must also cover the employee's contribution. Employees with employers who pay no contributions to the social insurances must pay the full ALV contribution. The compensation office bills the amount together with the contributions for the AHV, the IV, and the EO.