Extended maternity benefits and new care leave

Melanie Imper Manager, Employment Solutions, PwC Switzerland 05 Jul 2021

On 1 July 2021, following amendments to the Swiss Loss of Earnings Compensation Act, the associated ordinance and the Code of Obligations, provisions enter into force that allow extended maternity benefits if the new-born requires a longer hospital stay and care leave for children with severe health problems. We announced the care leave last year in our blog

The amendments to the loss of earnings compensation scheme are intended to help ensure better compatibility of work and taking care of relatives. The Swiss Federal Council approved the associated implementing provisions on 12 May 2021. 

The legal provisions covering leave for taking care of relatives entered into force already on 1 January 2021. This leave is limited to a maximum of three days per event and ten days per year. Now, from 1 July 2021 parents will be entitled to 14 weeks of care leave to look after their underaged children whose health is seriously affected by an accident or illness. In addition, mothers whose new-born babies require a longer stay in hospital immediately after birth will see an improvement in their financial position. Until now, parents in such circumstances have had to find an alternative solution – if necessary, losing their income, as continued payment of their salary was not always assured. The benefits will be paid in the form of a daily allowance financed through the loss of earnings compensation scheme and will amount to 80% of the recipient’s previous salary up to a maximum of 196 CHF per day. 

Extension of maternity benefits

At present, mothers whose new-born babies require a longer stay in hospital immediately after birth can only defer their maternity benefits. Therefore, depending on their situation, continued payment of their salary is no longer assured. This can mean that they have no income during this period. Under applicable employment law they are also not allowed to work in the first eight weeks after giving birth.

From 1 July 2021, maternity benefits can be extended by a maximum of 56 days in such cases. This equates to a maximum entitlement of 154 days instead of 98 days. 

The conditions applying to this are that the new-born has to stay in hospital for at least two weeks after the birth and that the mother returns to work after her maternity leave. To apply for the extension, a medical certificate must be issued confirming hospitalisation directly after birth and for at least two weeks (without interruption). Unemployed mothers are only entitled to the extension if their entitlement to unemployment benefit was not exhausted before giving birth and the time frame for receiving the benefit has not ended on the day after their maternity leave finishes. In all cases the entitlement ends when paid employment is resumed. 

With the amendments to loss of earnings compensation, gaps that result in loss of income are being closed.

Care leave for parents of children with severe health problems

Until now, parents of children with serious health problems had to manage their care for them somehow and accept large shortfalls in income. The new 14-week care leave is intended to enable parents to look after their child with serious health problems resulting from illness or accident. If both parents are working, they can also divide up this leave – each parent is then entitled to care leave up to a maximum of seven weeks. A different agreement can also be made by the parents as well. The parents must inform their employers of how the leave is being divided up and further modalities. The time frame for taking the leave is 18 months; the leave can be taken either on a daily basis or in one piece. Under the Swiss Code of Obligations (CO), employers are not permitted to give notice of termination of employment for a maximum of six months once entitlement begins (Protection against dismissal, Art. 336c CO). The CO also prohibits them from reducing holiday entitlement to make up for the care leave (Art. 329b (3) CO). All the details about entitlement and about the registration procedure can be found in the new «Circular regarding care benefits (KS BUE)» (available in German and French).

Contact us

Melanie Imper

Melanie Imper

Manager, Employment Solutions, PwC Switzerland

Tel: +41 58 792 28 32