ALV – Unemployment Insurance

Principles

Unemployment insurance (ALV) is compulsory in Switzerland and was introduced country-wide in 1977.

Objective

The ALV pays benefits in the case of unemployment, short-time work, lost working hours due to weather conditions and the inability of the employer to pay the salary. The ALV also pays for reintegration measures. Self-employed individuals cannot be insured for unemployment.

Contributions

Up to an annual salary of CHF 148’200.– (CHF 12’350.– per month), 1.1% is deducted from the employee’s gross salary. The employer must pay the same amount to the ALV. From an annual salary of CHF 148’200.– 1% is deducted, which the employers and employees share in equal part.