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 nine 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