Sickness daily allowance insurance: rights and waiting period
An insurance of a contractual nature
Unlike basic health insurance, sickness daily allowance insurance is not mandatory for employees at federal level in Switzerland, unless required by an applicable collective bargaining agreement or an individual employment contract. Where it exists, it most often falls under the federal Insurance Contract Act (ICA), which distinguishes it from social insurance governed by the ATSG.
The waiting period
The waiting period is the time, defined by the insurance contract, during which no benefit is paid after the start of incapacity for work. Its duration varies from contract to contract, generally from a few days to several weeks: the general terms and conditions of the specific contract must be checked to find the applicable period.
The duration of benefits
The period during which the daily allowance is paid is also set by the contract, most often limited to a maximum period of several months up to a few years depending on the insurance product taken out. This period interacts with the employer's statutory duty to continue paying salary under art. 324a CO in the absence of such insurance.
Interaction with the employer's statutory duty
In the absence of sickness daily allowance insurance, the employer remains obliged to pay salary for a limited time in the event of incapacity for work through no fault of the employee (art. 324a CO), with the duration depending on seniority and varying according to the usual cantonal scales.
Frequently asked questions
Is sickness daily allowance insurance mandatory?
It is in principle not mandatory at federal level for employees, unless an applicable collective bargaining agreement or the individual employment contract requires it.
What is the waiting period?
The period, set by the insurance contract, during which no allowance is paid after the start of incapacity for work. Its duration depends entirely on the contractual terms taken out.
What happens if my employer has not taken out sickness daily allowance insurance?
They remain obliged, under art. 324a CO, to pay salary for a limited time in the event of incapacity for work through no fault of the employee, with the duration depending on seniority and the applicable cantonal scale.