Continued payment of salary during illness

What is continued payment of salary during illness?

Continued payment of salary during illness (Lohnfortzahlung) is your employer’s obligation to keep paying your salary if you cannot work because of illness. It is governed by employment law, not by health insurance law. This is the most important difference that many people overlook: under basic health insurance your health insurer pays for doctors’ bills, hospital and medicines, but not for your salary.

The obligation applies not only to illness but also to other reasons relating to you personally for which you are not at fault, for example an accident, pregnancy or military service. In the case of an accident, compulsory accident insurance usually steps in. For illness there is no compulsory insurance. That is why many employers voluntarily take out daily sickness allowance insurance, which takes over the risk.

How it works

The entitlement arises if your employment relationship has lasted more than three months or was entered into from the outset for more than three months. In the first year of service the employer pays your full salary for at least three weeks, from the first day of illness. After that the period increases with the years of service. The law only says “an appropriately longer period”; the courts have developed scales for this. The entitlement applies per year of service, and several absences in the same year of service are added together.

Year of service	Basel scale (BS, BL)	Bern scale (BE, AG, OW, SG, French-speaking Switzerland)	Zurich scale (ZH, GR)
1st year	3 weeks	3 weeks	3 weeks
2nd year	2 months	1 month	8 weeks
3rd year	2 months	2 months	9 weeks
4th year	3 months	2 months	10 weeks
5th year	3 months	3 months	11 weeks
10th year	3 months	4 months	16 weeks
11th year	4 months	4 months	17 weeks

An employment contract, standard employment contract or collective labour agreement may provide for longer periods. They may also replace the rule with a different one if it is at least equivalent for you and has been agreed in writing. This is the case with daily sickness allowance insurance: according to SECO, a daily allowance of 80% of the salary for 720 days counts as equivalent if the employer pays at least half of the premium.

You must prove that you are unable to work. Your employer may ask for a medical certificate from the first day; the certificate states the degree of incapacity for work but not the diagnosis.

Legal basis

Art. 324a para. 1 of the Swiss Code of Obligations (CO) obliges the employer to pay the salary for a limited period if the employee is prevented from working through no fault of their own for reasons relating to them personally, provided the employment relationship has lasted more than three months or was entered into for that period. Para. 2 sets three weeks in the first year of service and an appropriately longer period thereafter. Para. 4 allows different arrangements by written agreement, standard employment contract or collective labour agreement if they are at least equivalent.

Art. 324b CO governs the case of compulsory insurance: if it covers at least four fifths of the salary, the employer does not have to pay anything on top; if there is a waiting period, the employer pays at least four fifths during that time. Art. 336c para. 1 let. b CO protects you against dismissal during illness. Daily allowance insurance under the Federal Health Insurance Act (KVG) is governed by Art. 67–77 KVG; under Art. 72 para. 3 KVG the daily allowance must be paid for at least 720 days within 900 days. Most employers, however, insure their staff through collective insurance under the Insurance Contract Act (ICA), whose terms are set out in the contract.

Example: relapse in the third year of service

Marco, 36, has been working for a company in Bern for two and a half years. His contract only refers to the Code of Obligations; there is no daily sickness allowance insurance. In his third year of service he is first signed off sick for two weeks and later for another seven weeks.

What this means for you

Read your employment contract and the staff regulations: if they mention daily sickness allowance insurance, ask about the policy and the waiting period. If there is no insurance, only the short period according to the scale applies.

If you are self-employed, there is no continued payment of salary. You must take out daily allowance insurance yourself. Under Art. 67 KVG this can be with a health insurer, including one other than your basic health insurer. You can see which insurers exist in the profiles under health insurers.

If you lose your job, the insurance through your employer ends. From collective insurance you can usually transfer to individual insurance; the deadline is stated in your policy. Also think about accident cover: compulsory accident insurance ends on the 31st day after the entitlement to at least half your salary has ended. After that you must insure accidents with your health insurer. You can compare the premium with accident cover in the premium calculator. More on the situation without a job can be found under unemployment.

Common mistakes

• Thinking your health insurer pays your salary. Basic health insurance does not pay replacement income. For that you need daily allowance insurance.
• Counting absences separately. The scale applies per year of service; all days of illness in the same year of service are added together.
• Missing the transfer deadline. If you do not switch to individual insurance in time when you lose your job, you can lose your cover, especially if you already have an illness.
• Handing in the medical certificate too late. Your employer may ask for it from the first day. Without proof you risk your entitlement to salary.

If you need help with a daily allowance solution for yourself or your SME, you can request advice.