DI and benefits: what you need to know
The DI scheme steps in when you are unable to work. Despite DI coverage, people may experience financial difficulties, especially in the event of illness-related disability. Comparis helps you wrap your head around the Swiss disability insurance programme.
25.10.2022
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1. What is disability insurance?
Disability insurance (DI) is a form of insurance in Switzerland. It is mandatory for anyone living or working in Switzerland to make contributions.
The DI is part of the state social security and pension system. Together with the Old age and survivors' insurance (OASI) and supplementary benefits (EL), it forms pillar 1 of the Swiss pension system.
2. When is someone considered disabled?
A person is considered to be disabled if he or she is permanently unable to work in his or her previous capacity due to a physical or mental condition. The definition applies whether or not the condition exists from birth or is the result of a disease or an accident.
3. What benefits does DI provide?
DI is intended to ensure the livelihood of individuals who are disabled. The following options are available to this end:
Integration measures
They help individuals maintain or improve their standing in the workplace through counselling, education/training, job placement, medical measures and aids, etc.
Disability benefits
If a person is 40% disabled for at least one year, he or she can claim disability benefits providing the condition is irreversible.
4. How are DI benefits calculated and how much can I claim for?
The benefit amount depends on:
how long you've paid contributions for
your average income
the degree of disability (40% to 100%)
With a full contribution period, the DI income is between min. 1,195 francs and max. 2,390 francs per month. In addition, there are child benefits (40% of the income amount up to the age of 18 years or the end of their first training/education programme; at the latest until the age of 25).
Good to know: since 1 January 2024, current invalidity insurance pensions in the mandatory second pillar have been adjusted in line with price trends. The adjustment rate is 6%.
When illness-related disability leads to financial problems
DI benefits make up the basis for financial protection. Depending on the causes of the disability (accident or illness), accident insurance and pension fund benefits can supplement the income from DI. Employees are relatively well insured against disability following an accident.
With an illness-related disability, the situation is different. The income from the disability insurance and the pension fund only cover about 60% of your previous income. The higher your salary, the lower this percentage. Life insurance protects you from the financial consequences of disability.
5. Who is DI income for?
If you think DI and pension fund benefits are insufficient to adequately protect yourself and your family in the event of a disability, you can take out private risk life insurance.
Life protection insurance helps you close pension gaps and cover the cost of living in the long term. It pays out the agreed benefits if the insured becomes incapacitated due to illness and/or an accident during the term of the contract.
This article was first published on 25.10.2022
