Part-Time Employment: Keep an Eye on Your Social Insurance Coverage

If you work part-time, it is important to review your social insurance coverage. Lower contributions can lead to gaps in your pension, and employees with very small workloads are not fully covered for all risks by their employer.

Nearly 40% of all employed people in Switzerland work part-time. The proportion is particularly high among women (58%), especially mothers with children living at home. Among men, the share is lower (21%), although it has steadily increased in recent years.

Illness and Accidents

If you become ill, you are initially entitled to continued salary payments under the Swiss Code of Obligations. If your employer has daily sickness benefit insurance, this policy generally covers salary replacement payments for up to two years, depending on the insurance policy and any minimum working-hour requirements.

In the event of an accident, employees who work at least eight hours per week for the same employer enjoy the same insurance protection as full-time employees. Under the Swiss Accident Insurance Act, accident insurance generally replaces 80% of the employee's previous salary. In addition to these daily benefits, the employer's accident insurance also covers medical treatment costs.

Employees with very small part-time workloads should pay particular attention. Those working fewer than eight hours per week for the same employer are insured against occupational accidents and occupational diseases, but not against non-occupational (leisure-time) accidents.

Families and couples—whether married or in a registered partnership—should also consider the financial consequences of the death of one partner.

If death results from an accident, benefits from the AHV and accident insurance may cover up to 90% of the deceased person's lost income through survivors' pensions, helping to offset the financial loss.

If death is caused by illness, however, the financial protection available to surviving family members is generally much lower.

Where one or both partners work part-time, it is especially important to assess the family's overall financial exposure in the event of death. Professional advice can help identify existing gaps and close them with suitable private insurance solutions.

AHV, IV, EO and Unemployment Insurance

Employees are familiar with payroll deductions for AHV, IV, and the Income Compensation Scheme (EO).

The largest deduction is for AHV, which finances future retirement pensions. IV primarily provides protection against the financial consequences of disability. EO traditionally compensates for income lost during military or civil protection service but now also covers maternity benefits and a range of other statutory payments.

For part-time employees, the principle is straightforward: lower contributions generally result in lower benefits.

This has the greatest impact on future AHV retirement pensions (see also UP|DATE 2|2025 – The Trend Towards Part-Time Work: Financial Challenges in Retirement).

Likewise, if permanent incapacity for work results from illness, disability insurance benefits are generally lower for part-time employees than for those working full-time. The same principle applies to benefits under the EO scheme.

Unemployment benefits are also affected. They are calculated based on the employee's average earnings during the previous six to twelve months. Eligible individuals generally receive 70% of their previous income, or 80% if they have dependent children or other maintenance obligations.

Working for Multiple Employers

Employees who combine two or more part-time jobs should be aware of several additional considerations.

First, the eight-hour minimum per employer discussed above determines whether non-occupational accident insurance applies.

Second, there is a risk that none of the individual salaries reaches the occupational pension entry threshold (CHF 22,680 in 2025). In that case, no employer is required to enrol the employee in a pension fund.

One possible solution is to join the BVG Substitute Occupational Benefit Institution (Auffangeinrichtung BVG) voluntarily. Alternatively, employees should check whether their various salaries can be combined under the occupational pension scheme of one of their employers.

Source: Treuhand | Suisse