Daily sickness allowance (KTG)
(Krankentaggeld) is Swiss insured sick pay: collective policies pay typically 80% of salary for up to 720–730 days of illness, replacing the employer’s limited statutory continuation duty. Not legally mandatory in most sectors, but standard practice and CBA-required in many — and expected by employees.
Why Swiss employers insure sick pay
The statutory fallback (Basel/Bern/Zurich scales) obliges employers to continue wages for weeks that grow with service — short protection, concentrated cost. KTG converts that into premiums: after a waiting period (commonly 14–30 days, employer-covered), the insurer pays 80% long-term. CBAs — including the staffing CBA covering payrolled workers — frequently mandate specific KTG terms.
For contractors under Swiss payrolling, KTG presence and terms are a real quality differentiator between providers — ask for the waiting period and percentage, not just ‘sickness covered’.
FAQ
Is KTG insurance mandatory in Switzerland?
Not by general statute — but CBAs mandate it across many sectors, and market practice makes it near-universal for professional employment. Without it, the employer’s scale-based continuation duty applies, which for long illness is worse for both sides.
What does KTG cost and who pays?
Premiums of roughly 1–3% of salary depending on sector, waiting period and cover, commonly split employer/employee with the employer paying at least half in practice (CBA terms vary). Payslips show the employee share; budgeting shows both.