Employer and social policy : Social policy

The social insurance system currently in place in Switzerland affords protection against financial losses associated with risks such as death, disability, old age, accidents, sickness and unemployment. The benefits of this system are largely financed through contributions based on percentage of salary. In the past few decades, the welfare system has been further developed, and this has given rise to an increase in labour costs and deficits in the various social insurances. The present-day social insurance system has essentially stood the test of time, but it now needs to undergo revision and be adapted to the new demographic perspectives. For the financing of the additional costs associated with the changing demographic outlook, however, the option of value-added tax percentage instead of percentage of salary needs to be given careful consideration, since the latter directly increases labour costs.