Bridging benefits for older unemployed people

At its meeting on 11th June 2021, the Federal Council decided that the new federal law and the ordinance on bridging benefits for older unemployed persons will enter into force on 1st July 2021. Persons who became unemployed after the age of 58 and are not excluded from unemployment insurance until after the age of 60 are entitled to bridging benefits until they receive a retirement pension. These bridging benefits are intended to secure the livelihood of persons who have lost their employment shortly before retirement age until the time when they can draw their old-age pension.

As mentioned above, the bridging benefit for older unemployed persons is aimed at those who lost their job after the age of 58 and were excluded from unemployment insurance after 60. In addition, these persons must have been insured under the Swiss old-age and survivors’ (OASI) scheme for at least 20 years, including at least five years after the age of 50. During this time, these persons must have earned an income of at least 75% of the OASI maximum (CHF 21’500.00, in 2021) or they must hold education and care credits. Furthermore, the bridging benefit for older unemployed persons is aimed form persons who has a domicile and actual residence in Switzerland or an EFTA or EU member state. Finally, these persons must have expenses that exceed their eligible income. To receive the bridging benefit, specific requirements are also placed on the assets of the persons. Only those who have assets auf less than CHF 50’000.00 for single persons or CHF 100’000.00 for married couples receive bridging benefits. When calculating the assets, real estate that is occupied by the persons concerned themselves is not considered. However, occupational pension assets exceeding a certain amount are included in the asset.

The bridging benefits consist of the annual bridging benefit and the compensation from sickness and disability costs. The maximum annual number of bridging benefits is CHF 44’123.00 for single persons and CHF 66’184.00 for married couples. Sickness and disability costs are also reimbursed annually. These are reimbursed up to a maximum of CHF 5’000.00 for single persons and CHF 10’000.00 for married couples, provided that the maximum amount of bridging benefits is not reached. The calculation of the annual bridging allowance is based on the difference between the recognized expenses and the eligible income.