What is it?

Replacement income during a work stoppage

It pays daily benefits when illness or accident temporarily prevents you from working.

Mandatory?

Not always

Employees have certain protections, but daily sickness benefits are not mandatory under federal law. Self-employed people must organise their own cover.

Key point

It covers the short term, not all disability

Loss of earnings bridges the income gap during absence. If incapacity becomes lasting, disability insurance, occupational pension or a private pension take over.

Loss of earnings diagram

Temporary income replacement if you stop working.

  1. Level Insured percentage How much income to secure
  2. Parameters Waiting period and duration When it starts, how long it lasts
  3. Base Income to protect Non-negotiable expenses

Waiting period and duration decide whether it really helps.

What is loss of earnings insurance for?

La perte de gain couvre la baisse de revenu lorsque vous ne pouvez plus travailler temporairement à cause d’une maladie ou d’un accident. Elle se distingue de l’incapacité de gain, qui vise une perte durable de capacité à générer un revenu.

The goal is concrete: continue paying rent, mortgage, health premiums, taxes, family expenses and, for self-employed people, business costs that continue even when activity stops.

Situation
Usual protection
Point to check
Sick employeeArt. 324a CO / daily sickness benefits
Limited salary continuation or daily sickness benefits depending on contract, collective agreement or employer.
Insured rate, 720/730-day duration, waiting period, premium sharing and individual continuation.
Injured employeeAccident insurance
Occupational accidents covered; non-occupational accidents if at least 8 hours per week with the same employer.
Insured salary, coordination with supplementary accident insurance and premium continuation.
Self-employedVoluntary protection
No automatic income continuation; sickness and accident daily benefits must be organised separately or combined.
Net income, fixed expenses, waiting period, accident cover and benefit duration.

Loss of earnings helps you bridge the gap

Work stoppage + Waiting period + Daily benefits Return or long-term pension

The right policy avoids an income gap between your reserves, salary continuation, collective insurance and a possible disability or occupational pension.

Employees: what Swiss law provides

In case of illness, the employer must continue salary for a limited period under Article 324a of the Swiss Code of Obligations if the employment relationship has lasted more than three months or was concluded for more than three months. The duration depends in particular on seniority and applicable scales.

Many companies replace this obligation with daily sickness benefits insurance. A solution often considered equivalent covers at least 80% of salary for 720 or 730 days over a defined period, with usual employer participation in premiums.

For self-employed people and directors

A self-employed person has no employer to continue salary. Basic health insurance pays for care but does not automatically replace income. Individual loss of earnings insurance can therefore become the most important cover to protect the household and activity.

The right amount depends on the income to replace, fixed expenses, available savings, business costs that continue during the stoppage and the possibility of delegating activity. A longer waiting period reduces the premium but requires stronger cash reserves.

Common pitfalls

Loss of earnings seems simple, but exclusions and waiting periods change everything.

Basic health insurance confused with incomeIt pays for care, not your salary.
Accident insurance confused with illnessAccident insurance handles accidents, not sickness absence.
Waiting period too longA 90-day waiting period is cheaper, but requires real reserves.
Insured income too lowSaving on the premium can leave a significant monthly gap.

I already have loss of earnings cover: what should I check?

Check waiting period, insured rate, benefit duration, sickness and accident, declared income, exclusions, medical reservations and conditions for switching to individual insurance after leaving a company. Also check coordination with a long-term pension.

How to choose the parameters

The waiting period must match your reserves. The insured rate must cover essential expenses without exceeding real income. The benefit duration should ideally cover the critical period before returning to work or a disability insurance decision.

Pour un indépendant, il faut aussi décider si l’accident est inclus dans la perte de gain ou couvert par une Accident insurance facultative. Pour une entreprise, la page perte de salaire maladie détaille la logique collective employeur.

With Finwise

We adjust protection to your real cash flow

We check your employment contract, accident insurance, collective insurance, professional status, expenses and reserves. Then we compare waiting period, insured rate, benefit duration, exclusions and real cost.

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