Income compensation scheme

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The Swiss Income Compensation Ordinance ( EO ) compensates for the loss of earnings of persons doing military , civil defense or community service . This insurance was introduced during the Second World War and was then still called Wehrmannsschutz. The amounts paid out are based on income, but at least 62 francs are paid per working day.

Since July 1, 2005, working women have been compensated for maternity leave .

The income compensation scheme, together with old-age and survivors' insurance (AHV), disability insurance (IV) and their supplementary benefits, form the first - state - pillar of the Swiss three- pillar system and serve to adequately secure subsistence needs.

EO is financed through payroll contributions, currently 0.45%, that of workers and licensers are ever paid in half, as well as interest income on the capital. In 2003 , income of 932 million francs was offset by expenditure of 703 million francs, which resulted in a surplus of 229 million. In addition, the PO still had CHF 2.27 billion in capital. The services benefited 312,278 men and 6,098 women (2003).

In 1998, 2.2 billion francs were transferred from the PO and another 1.5 billion francs in 2003 to the loss-making disability insurance (IV).

With the adoption of the Triponez initiative in 2004 for a revision of the EO and the integration of a maternity allowance from July 1, 2005, the number of beneficiaries increased from working mothers on maternity leave . As a result, from 2006 onwards, expenditure exceeded receipts. In 2007, income of CHF 908 million was offset by expenditure of CHF 1,336 million. The number of beneficiaries rose to 334,329.

By the end of 2010 this deficit could be compensated by the capital reserve. However, the reserve has decreased from a level of CHF 2,862 billion in 2005 to CHF 1,483 billion in 2008 and is expected to be only CHF 473 million by the end of 2010, which is below the statutory minimum reserve.

Therefore, from the beginning of 2011 until the end of 2015, the contributions were increased to 0.5%. Thanks to the premium increase, a surplus of CHF 0.1 billion was achieved in 2011.

literature

  • Ingrid Katharina Geiger: Basics of social insurance in Switzerland . Compendio Bildungsmedien AG, Zurich 2010, ISBN 978-3-7155-9379-1 ( online )

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