Family Maternity leave in Switzerland and your finances

In Switzerland, women are entitled to paid maternity leave. Find out what this means for your finances.

30 Nov 2021 7 min read

Swiss law guarantees 14 weeks of maternity leave.

The main points in a nutshell

In Switzerland, women are entitled to 14 weeks of paid maternity leave equivalent to 80 percent of their salary up to a maximum daily allowance of CHF 220.
High earners can suffer significant drops in salary and retirement provision, depending on their monthly income.
In the case of paternity leave, the same conditions apply and the same maximum daily allowance, but the leave is much shorter at only two weeks.

The first few weeks after the birth of a child are a special time. By law, women in Switzerland are entitled to maternity leave and compensation for loss of earnings. Many companies in Switzerland go well beyond the minimum legal requirement and pay their employees a full salary during maternity leave. However, if they do not do so, paid maternity leave can give rise to certain financial difficulties. In such cases, women can suffer significant financial losses as a result, especially high earners. Read the article to find out why this is the case and what you should be aware of.

How long is maternity leave in Switzerland?

In Switzerland, paid maternity leave starts from the day the child is born and ends after a maximum of 98 days or 14 weeks. It must be taken in a single block. Maternity leave can be ended early, but by law a minimum of eight weeks must be taken. If a mother starts working again directly after the mandatory eight weeks, she will no longer be eligible for further payments, as she will be receiving her regular salary from her employer. After the birth, Swiss labor law also ensures 16 weeks of employment protection, during which a woman cannot be dismissed by her employer.

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Under what conditions is a new mother entitled to financial benefits?

Statutory maternity leave in Switzerland applies from the day the child is born and ends after 98 days or 14 weeks at the latest. Maternity leave can also end sooner, but at least eight weeks must be taken. If a woman begins working again directly after the mandatory eight weeks, she will no longer be eligible for further payments, as she would receive her regular salary from her employer. Swiss labor law also allows for 16 weeks of maternity leave after the birth, during which time a woman cannot be dismissed by her employer.

To be entitled to a daily allowance during maternity leave, new mothers must meet the following conditions:

They must have been insured with the AHV during the nine months before giving birth (this period is reduced if the baby was born prematurely) and worked for at least five months during their pregnancy.
At the time they gave birth, they were (self-)employed, performed cash-remunerated work for their spouse, family or cohabiting partner’s business OR
were looking for work, i.e., were receiving unemployment benefits or satisfied the conditions to do so OR
were unable to work at the time they gave birth due to illness, accident or disability and received daily sickness allowance benefits calculated on the basis of a previous salary.

What are the financial challenges of paid maternity leave?

Women who take maternity leave in Switzerland are generally entitled to 80 percent of the average earned income they received before giving birth. However, the maximum amount to which they are entitled is set at CHF 220 per day, or CHF 6,600 per month. This means that women in well-paid positions will receive a significantly lower income during maternity leave compared to their regular job. For high earners, i.e., women who earn more than CHF 8,250 per month, the money received during maternity leave will thus be much lower.

Example calculation A (illustrative): monthly income of CHF 8,350

Before becoming pregnant, Ms. Smith earned CHF 8,350 a month (CHF 278.33 per day). Her maternity leave compensation is calculated as follows: monthly salary × 0.8 / 30 days = daily rate. In our example, this means CHF 8,350 × 0.8 / 30 days = CHF 222.66.

Since Ms. Smith’s daily rate exceeds the maximum maternity leave compensation, her effective daily rate is reduced to CHF 220. Her maternity pay for 98 days will thus be: CHF 21,560 (CHF 220 × 98 days).

With a normal daily rate of CHF 278.33, Ms. Smith would have earned CHF 27,276.66 in 98 days, equivalent to a financial loss of CHF 5,716.66.

Example calculation B (illustrative): monthly income of CHF 12,500

Before becoming pregnant, Ms. Smith received a monthly income of CHF 12,500 or CHF 416.66 daily. Her maternity leave compensation is calculated as follows: monthly salary × 0.8 / 30 days = daily rate. In our example, this means CHF 12,500 × 0.8 / 30 days = CHF 333.33.

With a normal daily rate of CHF 416.66, Ms. Smith would have earned CHF 40,832.68 in 98 days, equivalent to a financial loss of CHF 19,272.68.

What’s more, women are still required to contribute to their employer’s pension fund while on maternity leave, further reducing the benefits they receive during this period. Their employer deducts the same amount as before they gave birth. However, the law does allow for this deduction to be reduced if it would otherwise lead to an excessive financial burden during maternity leave.

Do not forget to factor in paid paternity leave

Since 1 January 2021, the child’s father is also entitled to at least two weeks of paternity leave in the first six months after the birth of the child. The same conditions apply to him as to the mother. He can take these two weeks in one go or spread them over different days. During these two weeks, his allowance for loss of earnings is the same as for the mother. The father is entitled to 80 percent of his average salary up to a maximum of CHF 220 per day.

In the case of high-earning couples or couples with two incomes, an even bigger salary gap then arises. The father’s loss of earnings should also be considered, depending on the couple’s situation – in particular because it may coincide with the mother’s reduced income. However, statutory paternity leave is much shorter.

How to tackle financial challenges

It goes without saying that having a baby has serious financial repercussions, especially since many women choose to extend their maternity leave beyond the statutory amount in the form of unpaid leave. Every woman should make sure they understand the financial challenges that arise as a result. Several companies offer longer maternity leave than the amount set by law and, in some cases, also pay a full salary.

Even if you decide to return to work full-time after maternity leave, it is worth considering how you will pay for childcare and the various other costs involved with raising a child. At any rate, it is important to address the topic of parenthood and maternity leave early on and to plan your finances looking as far ahead as possible. For example, if you plan to work part time after maternity leave, this may have a greater impact on your retirement savings, especially those in pillar 2.

It is therefore a good idea to continue paying into your private pillar 3a account if you can – even if you earn less than before. Plan your retirement proactively to maintain your standard of living in old age. Find out how to do this in our article “Planning your retirement as a woman”.

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