Income Compensation (EO): Who Qualifies and What You Get
Learn how self-employed individuals in Switzerland can receive a portion of their average income during military service, civil service, or maternity.
This scheme provides financial support to self-employed individuals to help replace lost earnings during specific periods of leave or service. It serves as a safety net for those who do not have a traditional employer to cover their salary while they are away from their business.
Who it's for
This compensation is specifically designed for self-employed persons. It applies to those who must take time away from their professional activities due to mandatory military service, performing civil service, or during periods of maternity. Because self-employed individuals are responsible for their own financial stability, this scheme ensures that these specific life events or civic duties do not result in a total loss of income.
What you get
The benefit is calculated based on your previous earnings. You are eligible to receive a payment that represents 80% of your average income. This calculation covers the time spent during your period of military service, civil service, or during your maternity leave. This is intended to help maintain your standard of living while you are unable to perform your usual work.
What it costs you
There is no direct out-of-pocket fee to apply for this benefit. The scheme is funded through your mandatory AHV contributions. As a self-employed person, you are already paying these social security contributions, which provide the necessary pool of funds to support this compensation system.
The catch to know
The most important thing to remember is the timing of your application. You must file your claim through your local compensation office immediately after the event occurs. If you wait too long after your period of service or maternity ends, you may miss the window to successfully claim your compensation.
How to apply
- Confirm that your period of military service, civil service, or maternity qualifies you for the scheme.
- Determine the average of your income to understand your expected compensation amount.
- Contact your local compensation office to obtain the necessary documentation.
- Submit your claim to the local office immediately following the qualifying event.