EO – Income Compensation Regulations (incl. Maternity and Paternity Allowance)
The income compensation regulations (EO) were introduced in 1953 and are mandatory. Maternity allowances have been financed through the EO since 1 July 2005, and paternity allowances are now also covered as of 1 January 2021.
The income compensation regulations govern the payments made to persons performing military, civilian and civil defence service, as well as compensation for maternity and paternity leave.
Employees pay a monthly contribution of 0.25% of their gross salary (from a total of 5.3% for AHV, IV and EO). Employers pay the same amount to the EO. Self-employed individuals must pay a monthly EO contribution of 0.5% of their taxable income (from a total of 10% for AHV, IV and EO). The contributions of unemployed persons are based on their assets.
The rates for military, civilian and civil defence service are provided in our «Income compensation regulations EO (Rates)» information sheet.
The statutory allowance during maternity and paternity leave is 80% of the average earned income immediately before the birth of the child, up to a maximum of CHF 196.– per day. For mothers, entitlement begins on the day the child is born and ends, at the latest, after 98 days. Fathers in employment have the right to two weeks' paternity leave, i.e. to ten days off work. Paternity leave can be taken during the first six months following the birth of the child, either as a single period or as individual days. Employers are not permitted to deduct this period from the father's annual leave entitlement.