Do I have to pay the full wages when my cleaner is unable to work due to long-term illness?

It may very well happen that your cleaner or domestic help is unfit to work for a longer period of time due to a severe illness or pregnancy. In this particular case, must all wages be paid during the entire leave of absence?

Suddenly, there was pain. Off to the hospital a few days later. Diagnosis? Acute appendicitis. The surgery as well as the recovery go smoothly. The only catch? Unfit to work for a longer period of time.

Planed for a long time, finally worked out. The desired offspring is own its way. Anticipation is huge, the kid’s room is fully furnished and equipped. Thus, towards the end of the pregnancy, the doctor orders a strict bed rest. Consequence? Unfit to work for a longer period of time?

Incapacity for work is an issue that addresses employers as well as employees. It might be advisable to both parties to be secured against the above-mentioned cases. In case of prolonged absences due to illness of the employee, according to law the employer is required to pay full wages despite failing labor services (an overview of the different wage scales in Switzerland can be found here). Once the legal obligation of continued sick pay is elapsed, an employee without own supplementary insurance will not be paid anymore. Certainly not an ideal scenario for both parties involved. The solution? A sick pay insurance.

Advantages of a sick pay insurance (KTG) for the employer.

A sick pay insurance has the advantage that the employer is no longer bound to the continued payment of wages required by law. In addition, during the waiting period of 30 days only 80% of the wages need to be paid. Why? The employer bears the risk of continued payment of wages to the insurance company.

The following sample calculation shows the advantage of a sick pay insurance for the employer.

Advantages of a sick pay insurance (KTG) for the employee.

For employees, in our case cleaners, domestic helpers, nannies, caregivers or babysitters, the advantage is very clear. Financial security is ensured even once the employer is no longer bound to the continued payment of wages required by law. In case of illness or pregnancy, 80% of total wages will be paid continuously. Therefore, a secure income will be provided until the employer is able to work again, to the maximum of 730 days.

Shared insurance premium

The premium of the sick pay insurance amounts to a total of 2% of the gross wage. The total amount of the insurance premium is equally shared between the employer as well as the employee, amounting 1% for each. Even though a sick pay insurance is not compulsory in Switzerland, we highly recommend it.

The wish, to take out a sick pay insurance, can be expressed by both the employer as well as the employee.

If you opt for our quitt. services, you can also take out the sick pay insurance (KTG). Click here for non-binding registration and an overview. You can also find an overview of our other insurance solutions here.

Do you have any questions regarding the sick pay insurance? Do not hesitate to contact our support ([email protected]).