Sick Leave in Switzerland: Code of Obligations, Scales and Daily Allowance Insurance

Switzerland’s sick leave law requires employers to continue paying full salary during illness under the Federal Act on Continued Payment of Salary in Case of Illness (Arlohnfortzahlungsgesetz, LACI). The duration depends on the employee’s length of service — ranging from 3 weeks in the first year to unlimited from the fifth year onward — though many employers insure the risk through daily allowance insurance (Tagesgeldversicherung).

Key Takeaways

• Employers must pay full salary for at least 3 weeks (first year) up to unlimited (from year 5)
• The waiting period is 3 days for most employees, but this can be insured away
• A medical certificate is required from day 3 at the latest
• Employers can insure the sick pay obligation through daily allowance insurance to cap their financial exposure
• The system is governed by the Code of Obligations (OR Art. 324a–324c)

Switzerland’s Sick Leave Entitlement

Switzerland’s sick leave system is governed by the Code of Obligations (Obligationenrecht, OR). Articles 324a to 324c require the employer to continue paying the employee’s salary during illness, with the duration determined by length of service.

The entitlement is a right by law — it cannot be waived by contract. However, the employer and employee can agree on insurance arrangements that shift the financial risk to an insurer.

The salary continuation applies regardless of whether the illness is the employee’s fault. It covers the agreed salary and any regular benefits (bonuses, commissions, housing, meals, etc.).

Who Pays for Sick Leave?

Period	Pay Rate	Who Pays
First year of service	100% salary for at least 3 weeks	Employer
Years 2–4	100% salary for at least 1–2 months	Employer
From year 5	100% salary, limited only by good faith	Employer (or insurer)

The critical distinction is that Switzerland has no state sickness benefit for employed persons. The employer bears the full cost unless they have insured the risk through daily allowance insurance.

Sick Leave Pay Rates

Length of Service	Minimum Paid Period	Source
Less than 1 year	3 weeks	OR Art. 324a
1–2 years	1–2 months (varies by canton)	OR Art. 324a
3–4 years	2–3 months (varies by canton)	OR Art. 324a
5–9 years	3 months	OR Art. 324a
10+ years	4 months	OR Art. 324a
From year 5 onward	Unlimited in good faith	Federal Supreme Court

The Federal Supreme Court has held that from the fifth year, salary continuation is limited only by the principle of good faith (Treu und Glauben). In practice, this means the employer must pay until the employee recovers, is assessed as permanently incapacitated, or the employment relationship ends by agreement.

Daily Allowance Insurance (Tagesgeldversicherung)

Most Swiss employers insure their sick pay obligation through a daily allowance insurance policy:

• The employee typically pays 60% of the premium (deducted from salary)
• The employer pays 40% of the premium
• The insurance pays the employee 80% of insured salary from day 31 (or when the waiting period ends)
• The employer’s remaining cost is limited to the gap between full salary and the insurance payout

This is why many Swiss payslips show a deduction for “Tagesgeldversicherung” — it protects both the employee (income continuity) and the employer (cost cap).

Medical Certificate Requirements

• Days 1–3: Self-certification is possible, but the employer can require a certificate from day 1
• From day 3: A medical certificate (Arztzeugnis) is generally required
• After 3 months: An independent medical assessment (AMK or EMR) may be requested

Cantonal practice varies. Some cantons require a certificate from day 1; others accept self-certification for up to 3 days. The employment contract or internal policy should specify the rule.

How to Calculate Sick Pay in Switzerland

Example: An employee with 6 years of service earning CHF 8,000/month is off sick for 45 calendar days.

1. Employer period (first 30 days): CHF 8,000
2. With daily allowance insurance (from day 31): Insurance pays 80% = CHF 6,400
3. Employer top-up (remaining 20%): CHF 1,600
4. Total month 2: CHF 6,400 (insurer) + CHF 1,600 (employer) = CHF 8,000

Without insurance, the employer pays the full CHF 8,000 for the entire 45 days.

The Waiting Period

Most Swiss employers apply a 3-day waiting period (Karenz) — the first 3 days of illness are unpaid unless the employment contract or collective agreement provides otherwise. This waiting period can be:

• Eliminated by collective agreement
• Insured through daily allowance insurance
• Waived by the employer voluntarily

Under the Federal Supreme Court’s good-faith doctrine, the waiting period does not apply from the fifth year of service onward.

Employer Obligations and Penalties

Swiss employers must:

• Pay the agreed salary during illness as required by OR Art. 324a–324c
• Collect and maintain medical certificates
• Cooperate with daily allowance insurance claims
• Maintain records for at least 10 years (tax and social security)
• Notify the employee of any conditions that may affect their entitlement

Non-compliance can result in claims from employees for unpaid salary, potential criminal sanctions for social security fraud, and difficulties in insurance claims.

Comparison With Other Countries

Country	Sick Days	Pay	Certificate Required
Switzerland	3 weeks–unlimited (by service)	100% (or 80% insured)	Day 3 (varies by canton)
UK	28 weeks SSP	£116.75/week	Day 7
Australia	10 days personal/carer’s leave	Full rate	2+ consecutive days
US	Varies by state	Varies	Employer policy

FAQ

Can an employee waive the right to salary continuation during illness?

No. Article 324 of the Code of Obligations is mandatory. An employment contract that purports to waive or reduce the employee’s right to salary continuation during illness is void. The only permissible arrangement is insurance, which shifts the payment obligation to an insurer but does not reduce the employee’s entitlement.

What is the difference between the waiting period and the first year entitlement?

The waiting period (Karenz) is the initial 3 unpaid days. The first-year entitlement is 3 weeks of paid leave. These are separate concepts — an employee in their first year has a 3-day unpaid waiting period followed by up to 3 weeks of paid leave.

How does daily allowance insurance work for part-time employees?

Part-time employees are insured on the same basis as full-time employees, but the insured salary is proportional to their working hours. The premium deduction is also proportional. The insurance payout is 80% of the insured part-time salary.