Sabbaticals in Switzerland: planning your insurance

1. Determine the terms of the sabbatical with your employer

Very few employees have enough holiday allowance to be able to take two to six months off work. If you don’t have enough allowance, you have two options: take unpaid time off or leave your job. In both cases: you will generally not receive any salary during your career break.

Unpaid leave

With this option, you agree with your employer that your employment contract will be suspended. Clarify the conditions with your employer and record them in writing. You will not be eligible for any holiday entitlement, nor for part of the 13th monthly salary during your break.

Termination

The second option is that you terminate your current employment contract. Some insurance policies will no longer be valid without a salary. Therefore, you must actively ensure you have sufficient cover. The best and simplest solutions come about when your employer and insurance company work together. So, start planning early and talk to your employer. As early as one year before your sabbatical or time off is best.

2. Sabbaticals: check insurance policies that become invalid without pay

Accident insurance

Insurance cover against non-occupational accidents ends 31 days after your last regular working day. After that, you must take care of accident cover yourself. Ask your employer or their accident insurance provider for what is known as an interim insurance policy. This lets you extend accident insurance cover up to a maximum of six months.

If the sabbatical lasts longer than the maximum cover given by interim insurance, you must take out additional accident insurance through your health insurer. Inform yourself in good time about the benefits and services provided in case of illness or injury abroad.

Daily sickness allowance

During unpaid leave, you are not entitled to continued payment of wages by your employer, or to daily sickness allowance. Find out how your employer’s daily sickness benefits insurance deals with unpaid leave. Some insurers include unpaid leave in the policy at no extra cost. Others regard the time off as withdrawing from the policy. In this case, your employer is obliged to draw your attention to the right to transfer to individual daily allowance insurance.

Daily sickness benefits insurance is not compulsory in Switzerland. Therefore, weigh up the costs and benefits carefully. Depending on the situation, it may also be worth taking out supplemental insurance through your health insurer or travel insurance as an alternative.

Disability

Usually, disability and life insurance cover ends one month after the last salary payment. You should ask your employer or their occupational pension provider whether you can stay with this pension provider during your unpaid leave. This way, you are protected against risks – and usually at a reasonable price. Some occupational pension providers continue risk protection separately. It’s a good idea to enquire about this.

You can join the Substitute Occupational Benefit Institution (German abbreviation: BVG) within 90 days of your obligatory health insurance expiring. This allows you to continue to insure yourself against the risks of death and disability.

Unemployment

If you decide to leave your job and look for a new one after your sabbatical, you can register as unemployed. To do so, you must have worked at least 12 months within the last two years and have made contributions to unemployment insurance.

3. Sabbaticals and health insurance

Basic health insurance

Travellers must also remain insured with a health insurer in Switzerland. This is the case as long as your place of residence is in Switzerland. With basic insurance, you are sometimes also protected abroad. Learn more about this topic in the article on “Illness or accident abroad: who pays for repatriation and more?”.

Don’t forget to pack your health insurance card. The European Health Insurance Card is on the back.

Check your supplemental insurance

Medical treatment abroad can quickly become expensive. Supplemental insurance covers additional costs that are not covered by basic insurance. Read more here on how to get the right insurance when travelling.

4. Pensions during unpaid leave

OASI (pillar 1)

The minimum contribution to the old age and survivors’ insurance (OASI) for unemployed people is 503 francs per year (as of 2022). For a short sabbatical, this contribution is already paid in the months during which you were still working. For longer trips, it is advisable to pay the minimum contribution independently. Contact your canton’s social insurance institution (also known as compensation office).

Good to know: gaps in contributions can be back-paid up to a maximum of five years.

Occupational pension (pillar 2)

There may be gaps in your occupational pension after long periods abroad. Voluntary savings contributions can be used to close these gaps after returning to work.

Please note: if you have left your job, you must transfer your retirement savings to a vested benefits institution. As soon as you start a new job, the vested benefits balance must be transferred to the occupational pension fund of the new employer.

Pillar 3a

Employees and self-employed people may pay into pillar 3a if they earn income subject to OASI contributions in the respective year. Make sure you pay on time, as you are not allowed to pay up to the maximum yearly amount at a later date.

Have you taken out a pillar 3a insurance policy? You usually have to pay the premiums even if you become unemployed. Some insurance policies allow you to suspend premium payments in exceptional circumstances, however. In this case, you may suspend payments as an exception. Read your insurance policy or ask an insurance advisor for more information.

5. Subletting your apartment during a sabbatical

Reduce your monthly fixed costs by renting your apartment out during your sabbatical. Obtain your landlord’s consent before doing this. Enter into a written subletting agreement with the subtenant.

6. Validity of personal liability insurance

You are liable for damage caused to another person or object. Personal liability insurance protects you from serious financial consequences. As a rule, personal liability insurance is valid worldwide. Inform yourself about the benefits and services abroad through your insurer.

7. Car insurance during a sabbatical

Travelling without your car: suspending car insurance

If you travel without your car, you can deposit the number plates with the Road Traffic Office of your canton of residence. Doing this means you temporarily don’t have to pay car insurance and vehicle tax. Find out more about suspending car insurance.

Travelling with your own car

Do you plan to travel the world with your own car or camper van? Swiss car insurance is usually sufficient within Europe. Check with your car insurance company what services and benefits will be provided to you on your journey.

Keep all relevant insurance documents and your driving licence safe and with you. Check what equipment you might need for your car abroad, as this can vary from country to country.

Good to know: you should also contact your insurance company as soon as possible in the event of a car accident abroad.