More on Covid 19 Relief Packages for Swiss Companies

IN BRIEF: The Swiss government will allow until 1stJuly 2020 to pay outstanding social security contributions and will waive interest on due contributions from the period of the 21stMarch until 30thJune.

In order to relieve the burden on companies and self-employed persons in this extraordinary situation, the Swiss Federal council has decided that social security contributions such as AHV, IV, EO and ALV shall waive interest on late payments for the period from 21stMarch 2020 until 30thJune 2020.

However, companies and self-employed persons must note, that contributions remain due and must be paid in full. As of 1stJuly 2020, the compensation funds will again issue reminders for outstanding contribution payments and, if necessary, initiate debt collection proceedings in the cases of non-payment.

Moreover, since 20thMarch, companies facing liquidity problems due to the Corona crisis can be granted a deferral of payment of social insurance contributions by the AHV compensation funds without default interest. Applicants must make an immediate initial instalment payment and commit themselves to regular instalment payments. This possibility of requesting payment in instalments of the contributions owed, intended to make it easier for employers to overcome liquidity bottlenecks, will continue to exist and will be interest-free until 20thSeptember 2020. For the employees, the measure has no effect: the employer deducts their contribution part from their salary as in normal circumstances and all contributions are credited to them by the pension fund.