Key points at a glance
- IV follows the principle of “integration before pension”: a pension is only granted once reasonable integration measures have been exhausted (Art. 28 para. 1bis IVG).
- You are entitled to a pension if you were unable to work by an average of at least 40% for one year and are at least 40% invalid afterwards (Art. 28 IVG).
- From a degree of invalidity of 70% there is a full pension; between 50% and 69% the share of the pension equals the degree of invalidity (Art. 28b IVG).
- For congenital disorders, IV pays for medical measures up to the age of 20; after that, the health insurer takes over (Art. 13 IVG, Art. 27 KVG).
- Employed people pay 1.4% of their earned income to IV (Art. 3 para. 1 IVG).
What is invalidity insurance?
Invalidity insurance (IV) is a compulsory federal social insurance. It is linked to old-age and survivors’ insurance (AHV): anyone who pays AHV contributions also pays IV contributions and is insured. IV aims to prevent, reduce or eliminate invalidity, to compensate for its economic consequences and to support a self-determined life (Art. 1a of the Federal Act on Invalidity Insurance, IVG).
Under Art. 8 of the Federal Act on the General Part of Social Insurance Law (ATSG), invalidity is a complete or partial inability to earn a living that is likely to be permanent or to last for a long time. It can be the result of a congenital disorder, an illness or an accident (Art. 4 IVG). Special rules apply to children and to people who were not previously in paid work, for example for the household as an area of activity.
IV has two points of contact with health insurance. Firstly, for congenital disorders it covers medical treatment up to the age of 20 that the health insurer would otherwise pay for. Secondly, it is often the follow-on solution when an illness lasts a long time and the daily allowance from daily sickness allowance insurance runs out.
How it works
IV works on the principle of “integration before pension”. The cantonal IV offices are responsible. After you register, they assess which measures will help. The most important benefits:
- Early intervention and advice: measures to help you keep your job or quickly find a new one.
- Medical measures: for insured persons up to the age of 20, if they serve directly for integration into school, education or work, and for congenital disorders.
- Vocational measures: careers advice, initial vocational training, retraining and job placement.
- Aids and appliances: according to a list issued by the Federal Council, for example for mobility or for contact with the environment.
- Daily allowance: during integration measures, if they prevent you from working for at least three days or you are at least 50% unable to work.
- Pension: only if integration is not sufficient.
To receive a pension, you must have been unable to work by an average of at least 40% for one year without significant interruption and must remain at least 40% invalid afterwards. The pension starts no earlier than six months after registration and no earlier than the month after your 18th birthday. Its amount depends on the degree of invalidity:
| Degree of invalidity | Share of a full pension |
|---|---|
| below 40% | no pension |
| 40% | 25% |
| 45% | 37.5% |
| 49% | 47.5% |
| 50–69% | equals the degree of invalidity |
| 70% or more | full pension |
Legal basis
The Federal Act on Invalidity Insurance (IVG) governs the purpose, benefits and procedure. Art. 8 IVG sets out the entitlement to integration measures, Art. 12 and 13 IVG the medical measures up to the age of 20, Art. 21 IVG aids and appliances and Art. 22 IVG the daily allowance. The pension is governed by Art. 28 IVG (conditions), Art. 28b IVG (pension shares) and Art. 29 IVG (start). IV is financed, among other things, by contributions of 1.4% of earned income (Art. 3 para. 1 IVG).
Two rules are important for the interaction with the health insurer. Under Art. 64 para. 2 ATSG, medical treatment is charged in this order: military insurance, accident insurance, invalidity insurance, health insurance. And under Art. 70 ATSG, the health insurer must pay benefits in kind and daily allowances in advance as long as it is unclear which insurance is responsible. Art. 27 of the Federal Health Insurance Act (KVG) states that basic health insurance covers congenital disorders that are not covered by IV.
Example: from daily allowance to pension
Sandro, 48, works in logistics and is completely unable to work because of a long illness. His employer has daily sickness allowance insurance.
| Point in time | What happens |
|---|---|
| Month 1 | 100% unable to work, daily sickness allowance under the contract, treatment through the health insurer |
| Month 2 | Registration with the IV office, early intervention with adaptation of the workplace |
| Month 12 | On average more than 40% unable to work over one year |
| Month 13 | The IV office determines a degree of invalidity of 45% |
| From month 13 | Entitlement to 37.5% of a full pension, because registration was more than six months ago |
What this means for you
- Register early: if you are unable to work for a longer period, register with the IV office of your canton. The six months until the earliest start of the pension only begin to run from registration.
- Keep your basic health insurance: basic health insurance remains compulsory even with an IV pension. You can compare premiums where you live in the premium calculator.
- Reconsider your deductible: with regular treatment, a low deductible is often cheaper. You can find the insurers compared under health insurers.
- Check supplementary benefits: if your pension is not enough, supplementary benefits can help, including with premiums and healthcare costs.
- Check whether work is the cause: if the illness was caused by your work, it may be an occupational disease; in that case accident insurance pays for treatment and the daily allowance (Art. 64 ATSG).
Common mistakes
- Waiting to register until the daily allowance runs out. The six-month waiting period for the pension then starts too late.
- Confusing IV and the health insurer. IV replaces income and finances integration; the health insurer pays for treatment.
- Taking the pension for granted. Below a degree of invalidity of 40% there is no pension, and IV first examines integration.
- Not registering congenital disorders. Parents must register a child with a congenital disorder with IV; otherwise treatment goes through the health insurer with a co-payment.
Frequently asked questions
Does IV pay my doctor’s bills?
For adults, generally not. The health insurer pays for the treatment of an illness, and accident insurance for the treatment of an accident. IV only covers medical measures for integration and for congenital disorders up to the age of 20.
When should I register with IV?
Early. The pension starts no earlier than six months after registration (Art. 29 para. 1 IVG). Integration measures work better the earlier they begin. The IV office of your canton of residence is responsible.
Who pays while IV is still assessing my case?
If there is doubt as to which social insurance is responsible, the health insurer must pay in advance for benefits in kind and daily allowances (Art. 70 ATSG). If you have daily sickness allowance insurance, it continues to pay according to its conditions.
Is the IV pension enough to live on?
Not always. If the pension does not cover your basic living costs, you can apply for supplementary benefits. These also help with healthcare costs that you have to bear yourself.
Related terms
- Supplementary benefitsSupplementary benefits (Ergänzungsleistungen, EL) are means-tested payments from the Confederation and the cantons for people receiving an AHV or IV pension whose income does not cover minimum living costs. For basic health insurance, they include a lump sum paid directly to your health insurer. In addition, the canton reimburses the deductible, retention fee and other illness costs.
- Aids and appliancesAids and appliances are medical items and products such as crutches, incontinence products or inhalers that you use yourself at home. Basic health insurance reimburses them if a doctor has prescribed them and they are on the Aids and Appliances List (MiGeL), up to the maximum amount set there. For children’s glasses, that is at most CHF 180.67 per year.
- Congenital disorderA congenital disorder is an illness that already exists when the birth is complete. If it is on the federal list and meets the legal criteria, invalidity insurance (IV) pays for treatment until the age of 20, without the health insurer’s deductible. After that, or without IV cover, basic health insurance pays.
- Daily allowanceA daily allowance is a fixed amount per day that replaces your lost earnings if you cannot work because of an accident or illness. For accidents, accident insurance pays 80% of the insured earnings from the third day after the day of the accident. For illness, there is no compulsory daily allowance; you need daily sickness allowance insurance.
- Occupational diseaseAn occupational disease is an illness caused exclusively or mainly by harmful substances or certain types of work in your job. It is treated in the same way as a work-related accident: accident insurance under the UVG pays for treatment and a daily allowance of 80% of your earnings, without your health insurance deductible. The substances and illnesses are listed in Annex 1 of the UVV.
- OvercompensationOvercompensation occurs when benefits from several social insurance schemes together add up to more than the earnings you lose because of illness or accident, plus the additional costs. The law prohibits it: the insurers reduce their benefits by the amount above that limit. Pensions from old-age and survivors’ insurance (AHV) and invalidity insurance (IV) are never reduced.
Sources
- Federal Act on Invalidity Insurance (IVG), Art. 28 (German; the English version on fedlex predates the 2022 reform)Art. 28 IVGfedlex.admin.ch
- Federal Act on Invalidity Insurance (IVG), Art. 28b and 29 (German; the English version on fedlex predates the 2022 reform)Art. 28b–29 IVGfedlex.admin.ch
- Federal Act on Invalidity Insurance (IVG), Art. 8, 12, 13 and 21 (German; the English version on fedlex predates the 2022 reform)Art. 8 IVGfedlex.admin.ch
- ATSG, Art. 8, 64 and 70Art. 64 ATSGfedlex.admin.ch
- Federal Health Insurance Act (KVG), Art. 27Art. 27 KVGfedlex.admin.ch
- FSIO: Invalidity Insurance – Overviewbsv.admin.ch