The Federal Council has extended the maximum period for receiving short-time work compensation from 18 to 24 months. In the 2025 autumn session, Parliament created the legal basis for this with an urgent amendment to the Unemployment Insurance Act (UIA). The amendment to the ordinance entered into force on 1 November 2025 and is valid until 31 July 2026. With this measure, the Federal Council is responding to the challenging situation with regard to orders – particularly in the mechanical engineering, electrical and metal industries – which is being exacerbated by the US tariffs currently in force.

Companies that are already receiving short-time work compensation and will soon reach the end of the previous maximum benefit period of 18 months can extend short-time working by a further 6 months. This enables them to make firmer plans and gives them time to adapt to the difficult economic situation. After that, a new framework period can only be opened again after a waiting period of six months.

In March 2024, Swiss voters decided in favour of the introduction of a 13th OASI pension payment. From 2026 onwards, all recipients of an OASI old-age retirement pension will receive an additional pension payment in December each year. The amount will be one twelfth of the OASI retirement pensions drawn from January to December. There is no (pro rata) entitlement if the pension recipient dies before December.

The 13th OASI pension payment is expected to result in additional OASI expenditure of CHF 4.2 billion in 2026, with the figure likely to increase thereafter. The question of how to finance these additional costs is still the subject of considerable debate in Parliament.

• The National Council is in favour of a temporary increase in VAT until the end of 2030. After that, the financial stability of OASI is to be ensured by structural measures as part of the OASI2030 reform.
• The model preferred by the Council of States combines an adjustment of VAT with additional salary deductions and incorporates legislative changes that have not yet been approved.

Options for financing the 13th OASI pension payment 

(as things stand following the autumn session) 

Federal Council dispatch: Increase VAT by 0.7 percentage points
Council of States: Increase VAT by 0.5 percentage points*, Increase salary deductions by 0.4 percentage points
National Council: Increase VAT by 0.7 percentage points for a limited period until 2030

^{*The option favoured by the Council of States provides for a second increase in VAT of a maximum of 0.5 percentage points. This is intended to finance the possible abolition of the cap on OASI pensions for married couples.}

The debate on financing for the 13th retirement pension payment will resume at the beginning of 2026. 

As a rule, OASI contributions do not have to be paid for salaries that do not exceed CHF 2,500 per year, per employer. Contributions are only deducted at the express request of the person covered. However, this exemption from the obligation to pay contributions does not apply in certain sectors where multiple short-term assignments with different employers are typical and widespread (e.g. household help, cultural sector). This means that even insured persons who change employer and have different job assignments on a regular basis are also adequately covered.

Waiver of contributions

From 1 January 2026, the list of sectors which are exempt from the waiver of contributions will be expanded to include companies in the fields of design, museums, electronic media, print media and choirs. 

Under OASI, stricter eligibility requirements apply to widower’s pensions than to widow’s pensions. This discrimination against widowers was condemned by the European Court of Human Rights in 2022. The Federal Council has now submitted an amendment to the law to Parliament that aims to eliminate the unequal treatment of men and women.

However, the bill goes far beyond the gender-neutral definition of benefits. It will also see the system of OASI survivors’ benefits adapted to social developments by taking account of modern family structures such as blended families and unmarried parents. This means that marital status will no longer be a decisive factor in future. Instead, mothers or fathers of children under the age of 25 would be entitled to a survivor’s pension under OASI if the other parent dies. Pension entitlement ceases at the end of the calendar year in which the youngest child turns 25. Special provisions apply in hardship cases and for widows and widowers with older children. The bill also provides for a number of transitional provisions for widow’s and widower’s pensions that will already be effect when the reform enters into force.

Equal treatment of men and women is also to be implemented in accident insurance (AIA), and widowers are to be put on an equal footing with widows. Survivors’ pensions under occupational benefit schemes are not affected by the reform, as identical conditions already apply to men and women.

The National Council considered the Federal Council’s proposal during the 2025 autumn session and expanded it into an indirect counterproposal to The Centre’s popular initiative “Yes to fair OASI pensions for married couples too”. The cap on the OASI pension for married couples at 150% of the maximum pension is to be lifted; however, in contrast to the proposed legislation, the regulation would only apply to pensions being paid for the first time.

The Council of States has not yet considered the bill.

The Federal Council wants to standardise the benefits provided under the Loss of Earnings Compensation Scheme (LEC) and better adapt them to societal developments. The LEC was originally introduced to compensate for the loss of earnings of those serving in the armed forces. The scope of benefits was expanded in several steps. Today, the LEC also compensates for loss of income in connection with parenthood.

Certain benefits, such as the company allowance and the childcare allowance, which are currently only available to those serving in the armed forces, are also to be offered to parents. The amendment also includes improvements in the event of the death of a newborn and if the mother or child has to be hospitalised. For full details, please see the Federal Council’s media release.

The Council of States unanimously approved the amendment in the 2025 autumn session. The National Council has not yet considered the bill.