The basic principles of social insurance are found in Articles 111 to 114 and Articles 116 and 117 of the Swiss Federal Constitution.
Article 111 defines the so-called "three-pillar principle", which regulates the structure of retirement, survivors', and disability benefits. Article 112 provides the basis for the old-age, survivors', and disability insurance, in Article 113 that of occupational pensions. Article 114 regulates the basis of the unemployment insurance; provisions for family allowances and maternity insurance are laid down in Article 116. Finally, in Article 117 sickness and accident insurance is regulated by constitutional law.
The old-age and survivors' insurance (Alters- und Hinterlassenenversicherung - AHV), together with the disability insurance (Invalidenversicherung - IV) and supplementary benefits, forms the first (state) pillar of the Swiss three-pillar system and serves to adequately safeguard the need for subsistence.
Social insurance is mostly financed by direct deductions from individual wages. The contributions are based on an individual's income. They are carried "on a parity basis," half by employers and half by employees. The only exception is health insurance, where income-independent head premiums are paid. In addition, there are also contributions from the public sector, for example old age pensions and disability pensions are financed by 5% from tobacco tax.
Social security services in Switzerland includes:
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