How the Swiss welfare system works

Switzerland's welfare state is built on compulsory insurance, not on a tax-funded national service. Federal laws set the main schemes. Compensation offices, pension funds, unemployment funds and private health insurers run them, and the cantons and municipalities handle health-premium subsidies, family-allowance top-ups and social assistance. Rules therefore vary by canton. This guide uses the canton of Zurich as its example.

Who is covered

Anyone who lives or works in Switzerland is covered, whatever their nationality. Employees pay most contributions through their salary: 10.6% for old-age, disability and income-compensation insurance (AHV/IV/EO) and 2.2% for unemployment insurance (ALV), each split equally with the employer (2026). Health insurance is the exception: you choose an insurer and pay the premium yourself.

EU and EFTA nationals are covered by the Agreement on the Free Movement of Persons, which coordinates pensions, health, unemployment and family benefits with their home countries. Switzerland also has bilateral social-security agreements with some other countries. If yours has none, periods insured at home do not count in Switzerland.

First registrations for newcomers

• Register with your municipality within 14 days of moving in, and apply for your residence permit if you have not done so yet.
• Take out basic health insurance within three months of arrival. You are insured from the day you arrived.
• Your employer registers you for AHV, accident and occupational pension insurance. If you work more than 8 hours a week, the employer's accident insurance also covers accidents outside work.
• Enrol children aged 4 to 15 at the local school.
• Check how you are taxed: without a C permit, tax is usually deducted from your salary.

The areas at a glance

• Health: compulsory private basic insurance (KVG/LAMal) with a yearly deductible and premium subsidies.
• Pension: three pillars: state AHV, occupational pension funds (BVG) and voluntary private savings (pillar 3a).
• Unemployment: insurance benefit of 70–80% of the insured salary; municipal social assistance as the last safety net.
• Family: monthly child and education allowances, plus subsidised childcare in some municipalities.
• Tax: federal, cantonal and municipal income tax; withholding tax for many foreign workers.
• Housing: strong tenant protection, deposits of up to three months' rent, subsidised flats.
• Education: 11 years of free compulsory schooling, university fees per semester, cantonal student grants.
• Parental: 14 weeks of paid maternity leave and 2 weeks for the other parent.

Things to watch

• Relying on social assistance can affect your residence permit, and in Zurich it blocks naturalisation for 3 years.
• Household and personal liability insurance are not compulsory but are strongly recommended.
• If a device in your home can receive radio or TV, you must pay the radio and TV fee, collected by Serafe AG.

Official guidance: Canton of Zurich: information for newcomers, AHV/IV information centre, FSIO: social security agreements, SEM: residence and integration FAQ

Health insurance in Switzerland

Switzerland has no free national health service. Everyone who lives here must take out basic health insurance (Grundversicherung, under the Health Insurance Act KVG/LAMal) with a private insurer. The law sets the benefits, so basic cover is the same at every insurer. Insurers must accept every applicant for basic insurance, whatever their age or health, with no waiting period. Premiums are not deducted from your salary: you pay them yourself each month.

Enrolling and switching

• You have three months after arriving in Switzerland, or after a baby is born, to take out insurance. You are already insured during those three months.
• You can choose any insurer that operates where you live.
• Insurers announce next year's premium by 31 October. To change insurer on 1 January, your cancellation must reach your current insurer by 30 November. If you have unpaid premiums for which you were sent a reminder, you cannot switch.
• Supplementary insurance (Zusatzversicherung) is optional. Insurers may refuse you after a health questionnaire.

What you pay

• Premium: depends on the insurer, the model, your deductible and where you live. The canton of Zurich has three premium regions. For 2027 the Swiss-wide average premium will be CHF 412 a month for all insured people and CHF 487.60 for adults (announced 29 September 2026; set yearly).
• Deductible (Franchise): adults choose between CHF 300 and CHF 2,500 a year, children between CHF 0 and CHF 600. A higher deductible lowers the premium.
• Co-payment (Selbstbehalt): after the deductible you pay 10% of costs, up to CHF 700 a year for adults and CHF 350 for children.
• Hospital contribution: CHF 15 a day. Children, young adults in education and pregnant women do not pay it.
• Pregnancy: for maternity services you pay no deductible or co-payment. From the 13th week of pregnancy until 8 weeks after the birth, ordinary treatment is free of cost-sharing too.

Doctors and insurance models

Your family doctor (Hausarzt) is the usual first contact and refers you to specialists. Cheaper models exist: a family-doctor or HMO model (you almost always go to a chosen practice first) or a Telmed model (you phone a medical hotline first). Employees who work more than 8 hours a week are insured against all accidents through their employer. If you work less, are self-employed or do not work, you must arrange accident cover yourself; for the self-employed and non-employed it is part of the health insurance.

People with a low income can apply for a premium reduction (Prämienverbilligung). In Zurich it is handled by the cantonal social insurance office (SVA Zürich). For 2026, a single person with assets above CHF 150,000 has no entitlement.

Common pitfalls for newcomers

• Your municipality asks for proof of health insurance when you register. If you do not have it yet, you must hand it in within three months.
• With the CHF 2,500 deductible, keep CHF 3,200 aside for one bad year (deductible plus maximum co-payment).
• Do not pay twice for accident cover if your employer already insures you.
• Outside the EU/EFTA, basic insurance pays emergency treatment only up to a limit. Consider extra travel cover before visiting countries with expensive care.

Official guidance: ch.ch: health insurance costs, ch.ch: taking out or changing insurance, FOPH: premiums FAQ, SVA Zürich: premium reduction 2026

Pensions: the three pillars

Swiss retirement income rests on three pillars. The state old-age and survivors' insurance (AHV/AVS) covers basic needs. Occupational pension funds (BVG/LPP) aim, together with the AHV, to provide about 60% of your last salary. Voluntary private saving (pillar 3a) tops this up with tax relief.

Pillar 1: AHV/AVS

• Contributions: employees pay from 1 January after their 17th birthday. AHV, disability (IV) and income-compensation (EO) contributions total 10.6% of salary, half paid by you and half by your employer (2026). People who stop working before pension age must keep paying as non-employed persons.
• Pension age: 65 for men. For women it is rising in steps: 64 years and 6 months for women born in 1962 (2026), and 65 for everyone from 2028. You can draw the pension from age 63 or defer it by up to 5 years.
• Amount: you need at least one full contribution year. A full pension (scale 44) requires contributions every year from 1 January after your 20th birthday until pension age. Each missing year usually cuts the pension by at least 1/44. A full monthly pension is between CHF 1,260 and CHF 2,520, and a married couple's two pensions together are capped at CHF 3,780 (amounts set in 2025 and still valid in 2026).
• 13th pension: from December 2026, pensioners receive an extra monthly pension each December.

Pillar 2: occupational pension (BVG/LPP)

Employers must insure employees who earn more than CHF 22,680 a year with one employer (2025–2026 threshold) in a registered pension fund. Both pay contributions, and the fund's rules set the details. The compulsory part covers salary up to CHF 90,720 a year, after a coordination deduction of CHF 26,460 (2025–2026).

Pillar 3a: private pension savings

You can pay into a tied pension account or policy and deduct it from taxable income. If you have a pension fund, the maximum is CHF 7,258 a year (2025 and 2026; usually adjusted every two years). From 2026 you can fill gaps from 2025 onwards, up to 10 years back, in any year in which you also pay the full maximum.

Agreements with other countries

For EU and EFTA nationals, the Agreement on the Free Movement of Persons (in force since 1 June 2002) coordinates pensions, so insurance periods in those countries are taken into account. Switzerland also has bilateral agreements with countries such as Australia, Brazil, Canada, Japan, the Philippines, Türkiye, the United Kingdom and the United States. Some agreements, for example with China, India and South Korea, only decide which country's insurance you belong to, not your pension rights.

Common pitfalls for newcomers

• Years abroad leave gaps that can permanently reduce your AHV pension. Ask your compensation office for your account statement.
• If you come from a country without an agreement, foreign insurance periods do not count. If you leave Switzerland for good, you can ask for your AHV contributions back without interest, provided you paid for at least one full year.
• Supplementary benefits (EL) for low pensions are only paid to people living in Switzerland.

Official guidance: AHV/IV: old-age pensions (leaflet 3.01), AHV/IV: occupational pensions (leaflet 6.06), FSIO: pillar 3a FAQ, FSIO: list of social security agreements, AHV/IV: nationals of non-agreement states (leaflet 10.03)

Unemployment insurance in Switzerland

Unemployment insurance (Arbeitslosenversicherung, ALV) is compulsory for employees and is the same in every canton. You and your employer each pay half of a 2.2% contribution on salary up to CHF 148,200 a year (2026). Self-employed people are not insured. The regional employment centre (RAV) supports and checks your job search; an unemployment fund (Arbeitslosenkasse) of your choice pays the benefit.

Who can claim

• Contributions: at least 12 months of contributions within the 2 years before you register. Some people are exempt, for example after more than 12 months of illness; they receive a lower flat-rate benefit.
• Residence: you must live in Switzerland. Foreign nationals need a valid B or C permit. Cross-border workers (G permit) normally claim in their country of residence.
• Availability: you must be willing and able to take suitable work, attend the RAV meetings and prove your job applications every month.
• EU/EFTA nationals can count contribution periods from EU/EFTA countries if they last worked in Switzerland.

Amount and duration (2026)

• Daily allowance (Taggeld): 70% of your insured salary, or 80% if you support children under 25, if your insured salary is no more than CHF 3,797 a month, or if you receive a disability pension of at least 40%. The insured salary is your average salary over the last 6 or 12 months, whichever is higher. You receive 5 allowances a week.
• Waiting days: usually 5 days before the first payment. There are none if your yearly insured income is up to CHF 36,000 (CHF 60,000 if you support children); without children it rises to 10 to 20 days above CHF 60,000.
• Duration: within a 2-year benefit period, 200 daily allowances for people under 25 without children. From age 25, or if you support children, you get 260 with 12 to 17 months of contributions and 400 with 18 to 24 months; people aged 55 or over with at least 22 months get 520. If you become unemployed in the last 4 years before pension age, you get up to 120 more.

When the benefit ends

Once your entitlement is used up, municipal social assistance (Sozialhilfe) is the last safety net. In Zurich the municipalities run it and must apply the national SKOS guidelines; ask the social services (Soziale Dienste) of your municipality. People who lose their entitlement in or after the month they turn 60 may qualify for bridging benefits (Überbrückungsleistungen) until pension age, if they meet the insurance and income conditions.

Common pitfalls for newcomers

• Register with the RAV no later than your first day without work, online or in person. You can and should register during your notice period. Days before you register are not paid.
• Keep proof of your applications from the notice period onwards. If you resign without a new job, or caused your dismissal, benefits can be suspended for 1 to 60 days.
• Renew an expiring B permit in time. Social assistance can lead the canton to withdraw or not renew a residence permit, and in Zurich you can only be naturalised if you have received none in the last 3 years or have repaid it in full.

Official guidance: ch.ch: unemployment insurance, SECO: unemployment guide for insured persons 2026 (PDF), AHV/IV: unemployment insurance contributions (leaflet 2.08), Canton of Zurich: social assistance, SEM: residence and social assistance FAQ

Family benefits in Switzerland

Switzerland has no single national child benefit paid by the state. Instead, family allowances (Familienzulagen) are paid through employers and family compensation funds (Familienausgleichskassen, FAK). Federal law (FamZG) sets minimum amounts, and each canton may pay more and add birth or adoption allowances. Childcare is organised and subsidised by municipalities, so costs vary a lot. The examples below are for the canton and City of Zurich.

Family allowances (Familienzulagen)

• Child allowance (Kinderzulage): paid from the month of birth until the end of the month in which the child turns 16. Federal minimum: CHF 215 a month (2026).
• Education allowance (Ausbildungszulage): for children aged 15 or over who are in post-compulsory education (apprenticeship, upper-secondary school, university), until the end of training but no later than the month they turn 25. Federal minimum: CHF 268 a month (2026).
• Canton of Zurich (2026): CHF 215 a month per child up to age 12, CHF 268 from age 12, and an education allowance of CHF 268. Zurich pays no birth or adoption allowance.
• Who receives them: employees and self-employed people earning at least CHF 630 a month (CHF 7,560 a year, 2026), even when working part time. Non-employed parents with a taxable income of no more than CHF 45,360 a year may also qualify. Only one allowance is paid per child; if both parents qualify, the law sets which one receives it.
• How to apply: employees apply through their employer; self-employed people through their FAK; non-employed people through the cantonal fund where they live (in Zurich: SVA Zürich).

Allowances during unemployment, illness and leave

During maternity, paternity or adoption leave the allowance continues. If you are ill or have an accident, it continues for the rest of the month and three more months. People who receive unemployment benefit get a supplement equal to their canton's child or education allowance, unless the other parent already receives an allowance for the same child.

Childcare

Day-care centres (Kitas) and day families (Tagesfamilien) are mostly private and expensive, but many municipalities subsidise places according to income and assets. In the City of Zurich (rules in force in 2026), parents of children aged 0 to 4 pay at most CHF 120 and at least CHF 12 per day for a subsidised Kita place; the city pays the difference. It subsidises the days that both parents together work beyond 100% (for single parents, all working days), up to 240 days a year. You need two confirmations from the city: the subsidised amount of care and your contribution factor.

Common pitfalls for newcomers

• Allowances for children living abroad are paid only where an agreement requires it, mainly for EU/EFTA nationals whose children live in the EU/EFTA. The agreement with the United Kingdom does not cover family benefits.
• Tell your employer about every new child: allowances are not paid automatically.
• If you take a child out of a subsidised Kita before the notice period ends, the Kita may charge the full, unsubsidised price.
• Rates differ by canton. If the second parent works in a canton with higher rates, you can claim the difference.

Official guidance: FSIO: family allowances, rules and rates, FSIO: rates by canton 2026 (PDF), AHV/IV: family allowances (leaflet 6.08), SVA Zürich: family allowances, City of Zurich: childcare costs and subsidies

Taxes in Switzerland

Switzerland taxes income at three levels: the Confederation (direct federal tax), the canton and the municipality. Each canton has its own tax law, rates and deductions, so the same salary is taxed very differently from place to place. Cantons and municipalities also tax wealth; the Confederation does not. Members of recognised churches usually pay church tax. Social-insurance contributions (AHV, ALV and pension fund) are separate from tax and are deducted from your salary.

Who pays and how

• Tax residence: you are fully taxable in Switzerland if you live here, or if you stay at least 30 days while working (90 days without working).
• Withholding tax (Quellensteuer): foreign employees without a C permit, who are not married to a Swiss citizen or C-permit holder, have tax deducted from their salary by the employer. In Zurich, if your gross income is at least CHF 120,000 a year, or you have other income of at least CHF 3,000 or wealth of at least CHF 80,000, you must be assessed with a full tax return instead; in the second case you must request it by the end of March of the following year. Below these limits you can apply for a full assessment by the same date. Once assessed this way, you stay in that system while you remain liable to withholding tax.
• Tax return (Steuererklärung): C-permit holders and Swiss citizens file a return every year declaring all income and assets. In Zurich it is due by 31 March of the following year; ask your municipal tax office for an extension before that date if you need one.

Rates (2026)

• Federal tax: progressive, reaching a flat 11.5% only on very high incomes. On a taxable income of CHF 100,000 the federal tax is CHF 2,684.35 for a single person and CHF 1,816 for a married couple or single parent, reduced by CHF 263 per child (2026 tariff; tariffs and deductions are adjusted for inflation).
• Cantonal and municipal tax: the canton sets a basic tax ("simple tax") by law, and canton and municipality each charge a multiple of it (Steuerfuss). In 2026 the canton of Zurich charges 95% and the City of Zurich 119%; the Roman Catholic and Protestant churches in the city charge 10% each. Other Zurich municipalities set their own rate.
• Withholding tax on interest: banks deduct 35% from interest and dividends. Declare the income in your return and the 35% is refunded or credited.
• VAT (MWST): standard rate 8.1% (2026).

Common pitfalls for newcomers

• Under withholding tax, missing the end-of-March deadline means you lose the chance of a full assessment for that year.
• Municipal multipliers differ, so moving even within the canton can change your tax bill noticeably.
• Pillar 3a payments reduce your taxable income (up to CHF 7,258 in 2026 if you have a pension fund). Keep the certificate from your bank for your return.
• Pay tax bills on time: unpaid debts lead to entries in the debt-collection register (Betreibungsregister), and in Zurich unpaid entries from the last 5 years block naturalisation.

Official guidance: Federal Tax Administration: federal tax tariffs, FTA: current Swiss taxes 2026 (PDF), FTA: tax rates and multipliers 2026 (PDF), Canton of Zurich: tax return, Canton of Zurich: finances and taxes for newcomers

Housing in Switzerland

Tenancy is governed by federal law (the Code of Obligations, OR/CO), so the core rules are the same in every canton. When you apply for a flat, landlords usually ask for an application form, an extract from the debt-collection register (Betreibungsregisterauszug), references or salary statements. There is no general housing allowance for tenants; support comes through non-profit housing, social assistance and supplementary benefits.

Renting: your rights

• Deposit (Mietkaution): at most three months' rent. The landlord must put it in a bank savings account or deposit in the tenant's name. The bank releases it only with both parties' consent or a final court decision or payment order. If the landlord has made no legal claim within one year after the tenancy ends, you can ask the bank to pay it back to you.
• Initial rent: in the canton of Zurich, landlords must notify the initial rent on an official form when you sign a new lease. You can challenge the initial rent as abusive at the conciliation authority (Schlichtungsbehörde) within 30 days of moving in, if you had to sign because of personal need or the local housing shortage, or if it is much higher than the previous rent.
• Rent changes: rent increases and terminations by the landlord must be made on a form approved by the canton. Rent changes due to interest rates follow the mortgage reference rate published by the Federal Office for Housing: 1.25% since 2 September 2025, confirmed again from 2 September 2026. If your rent is still based on 1.5% or more, you can generally ask for a reduction.
• Notice: both sides can end a flat lease with three months' notice to a local termination date.

Non-profit and subsidised housing

Housing cooperatives and municipalities offer flats at cost rent. The City of Zurich, for example, rents its own flats by lottery for viewings and keeps no waiting list. Households must have at least as many people as rooms minus one, and at the start of the lease household income may be no more than four times the gross annual rent. Subsidised city flats are only for people with a low income and taxable wealth of no more than CHF 200,000. Applicants need Swiss citizenship or a B, C or S permit and must have lived in the canton of Zurich for at least 2 years.

Help with rent

Pensioners and disability-pension recipients with low income can receive supplementary benefits (Ergänzungsleistungen, EL), which include rent up to a ceiling: for a single person, CHF 18,900 a year in a large city such as Zurich (2025 leaflet). People of working age in need receive rent as part of municipal social assistance.

Common pitfalls for newcomers

• Register with your new municipality within 14 days of moving in.
• Never pay a deposit into the landlord's private account: the law requires a blocked account in your name.
• Household and personal liability insurance are not compulsory, but the canton strongly recommends both.
• Landlords ask for a debt-collection extract, so unpaid bills that end in debt collection make it much harder to rent.

Official guidance: Federal Office for Housing: reference interest rate, Code of Obligations: tenancy law (SR 220), Canton of Zurich: tenancy forms, Canton of Zurich: living, for newcomers, City of Zurich: rules for city flats, AHV/IV: supplementary benefits (leaflet 5.01)

Education in Switzerland

The cantons run compulsory schooling, so school structures, holidays and some rules differ from canton to canton. In most cantons schooling is compulsory for eleven years, including kindergarten. Public schools are free and politically and religiously neutral; in Zurich every child staying in the canton has the right to attend. Universities charge modest semester fees, and cantons give grants to students who cannot cover their costs. The examples below are for the canton of Zurich.

Compulsory school (Volksschule)

• Kindergarten: in Zurich, every child who is four years old on 31 July starts kindergarten in mid-August. It lasts two years and is compulsory; the only entry condition is age. Lessons in kindergarten are mainly in Swiss German.
• Primary school: six years. After the 6th year, pupils go to lower secondary school (Sekundarschule, three years) or, after passing the central entrance exam (ZAP), to the long-course Gymnasium.
• Costs: public schooling is free. Private schools are allowed but you pay for them yourself.
• Registration: contact your municipality or the local school after you move in. Children who do not speak the local language well get additional intensive language support.

After compulsory school

Young people can choose between a vocational apprenticeship (Berufslehre, 2 to 4 years, combining work in a company with a vocational school) and a baccalaureate school (Gymnasium, Fachmittelschule). A Swiss Matura gives access to all Swiss universities and both Federal Institutes of Technology (ETH). An apprenticeship leads to a federal certificate (EBA or EFZ). Career and study counselling is available at the regional vocational information centre (biz).

Higher education fees and student aid

• Fees: ETH Zurich charges CHF 730 per semester for Swiss citizens and for students who lived in Switzerland when they obtained their entrance qualification; since autumn 2025 other students pay three times as much, CHF 2,190. The University of Zurich charges CHF 720 per semester plus compulsory contributions and a surcharge for students with a foreign school-leaving certificate (2026).
• Grants and loans (Ausbildungsbeiträge): the canton where you (or usually your parents) live pays grants, which you do not repay, and loans, which you repay with interest. In Zurich, foreign nationals qualify if they hold a C permit, have held a B permit for five years, are recognised refugees, or come from a country with an equal-treatment agreement (mainly EU/EFTA). Apprenticeships, baccalaureate schools and Bachelor's and Master's degrees qualify. People over 45 receive nothing.

Common pitfalls for newcomers

• Kindergarten is compulsory in Zurich. To delay school entry, you normally have to ask the school authority.
• A foreign school-leaving certificate is not automatically accepted for university: ask the university directly about admission and recognition.
• Fee groups are fixed at admission. At ETH you cannot move to the lower fee group later in your studies, so submit proof of residence before your studies begin.
• Grants usually depend on where your parents live. Adults gain their own grant residence in Zurich only after living and working there for two years after a first qualification (with further conditions).

Official guidance: ch.ch: kindergarten and compulsory school, Canton of Zurich: education system, Canton of Zurich: kindergarten, Canton of Zurich: conditions for education grants, ETH Zurich: tuition fees, University of Zurich: fees

Maternity, paternity and parental leave

Switzerland has no general paid parental leave to share between parents. Instead, federal law gives working mothers 14 weeks of maternity leave and the other parent 2 weeks, both paid through the income-compensation scheme (Erwerbsersatzordnung, EO) that every employee funds through salary contributions. The rules are national (Geneva pays some extra cantonal benefits). The law sets minimums: employers may offer more, so check your contract or collective agreement.

Maternity leave and benefit (Mutterschaftsentschädigung)

• Duration: at least 14 weeks (98 days) from the day of birth. The benefit stops early if you go back to work, fully or partly, before then.
• Amount: 80% of your average earnings before the birth, up to CHF 220 a day (current AHV/IV leaflet, as of 1 January 2025).
• Conditions: you were insured under the AHV for the 9 months before the birth (fewer if the baby is premature) and worked for at least 5 of them. Periods in the EU, EFTA or the United Kingdom count. Mothers who are unemployed and receive or qualify for unemployment benefit, or who are on sick pay based on a previous salary, are also covered.
• Longer hospital stay: if the baby must stay in hospital for more than 14 days right after birth, the benefit is extended by that time, by up to 56 days, provided you return to work afterwards.
• Job protection: your employer may not dismiss you during pregnancy or in the 16 weeks after the birth (after the probation period).

Leave for the other parent (Urlaub des andern Elternteils)

The father, or the mother's wife, is entitled to 2 weeks of leave (10 working days for a full-time job). It must be taken within 6 months of the birth, either in one block or as single days. The benefit is 80% of earnings, up to CHF 220 a day (14 daily allowances). If the mother dies within 14 weeks of the birth, the other parent receives 14 weeks of leave.

Adoption and care leave

• Adoption leave: 2 weeks when you take in a child for adoption, to be taken within the first year. The parents can split it, but not take it at the same time.
• Care leave (Betreuungsurlaub): up to 14 weeks within 18 months to care for a child who is seriously ill or injured, paid through the EO. If both parents work, each has 7 weeks unless they agree another split.

Common pitfalls for newcomers

• Employees apply through their employer, self-employed people directly at their compensation office. If you do not, an employer who keeps paying your salary can claim it.
• If you moved to Switzerland during pregnancy, check whether you will have 9 months of insurance by the birth. Periods outside the EU/EFTA/UK do not count.
• During maternity leave the family allowance continues, and you pay no deductible or co-payment for maternity care under health insurance.
• The other parent's 2 weeks must be used within 6 months of the birth; days not taken by then are lost.

Official guidance: AHV/IV: maternity benefit (leaflet 6.02), AHV/IV: benefit for the other parent (leaflet 6.04), Code of Obligations: leave rules, Art. 329f–329j and 336c, ch.ch: health insurance benefits in pregnancy