IV – Disability Insurance
The disability insurance (IV) is compulsory for everybody who lives or works in Switzerland. It was introduced in 1960.
The reintegration measures ordered by the IV should make it possible for disabled persons to fully or partly provide for their own basic livelihood. If integration or reintegration into professional life is impossible or only partly possible, the IV pays a pension or a partial pension.
Obligation to pay contributions
Employees from the age of 18 and self-employed individuals must pay IV contributions. People who are not gainfully employed pay contributions from the age of 20.
Employees pay 0.7% of the monthly gross salary in contributions (total 5.275% for AHV, IV and EO). Employers pay the same amount to the IV. Self-employed individuals pay 1.4% of their taxable income in contributions (total 9.95% for AHV, IV and EO). The contributions of persons who are not gainfully employed are based on their assets.
Entitlement to disability pension
A disabled person is someone who is partly or totally unable to work due to an impairment of physical or mental health (i.e. unable to continue to carry out the work done before). The impairment is the consequence of an illness or an accident or has existed since birth. Before a disability pension is granted, the IV first investigates all options for reintegration (principle: integration before pension).
IV daily benefits
Disability pensions are not always paid out in the event of incapacity to work. Insured who are relying on reintegration measures to try and return to work are supported by the IV with daily benefits. These daily benefits are meant to cover the living costs of the insured and their families during the reintegration process.
The entitlement to daily benefits starts at the earliest on the first day of the month following the 18th birthday. The entitlement to IV daily benefits lapses at the latest at the end of the month before a retirement pension falls due.