Employers have to take care of various compulsory insurances for their non-family employees. There are fewer insurance obligations for family members. It should be provided voluntarily.
In farming – and only in farming! – the working family members are considered employees, but are treated the same as self-employed persons for their agricultural work in terms of insurance.
Who is considered family owned, non-family?
From the point of view of the farm manager, family employees in agriculture are: (1) spouse, (2) relatives in the ascending and descending line: parents, grandparents and children, grandchildren, (3) sons and daughters-in-law (also stepsons and daughters) , who are expected to take over the business for self-management.
All other employees, in particular cohabiting partners, siblings, uncles, aunts and employees who are not related by blood are considered non-family employees. The insurance coverage for family and non-family employees is described in the boxes below.
family employees
The compulsory personal insurances for family members working in agriculture are:
- Old-age and survivors’ insurance (AHV)/disability insurance (IV)/earnings compensation scheme (EO), family allowances (no obligation to pay contributions, but entitlement)
- Basic health insurance
To supplement the minimum mandatory insurance cover, the conclusion of the following voluntary insurance is necessary or strongly recommended:
- Outpatient supplementary insurance and supplementary hospital insurance cover treatments and services that are not covered by basic health insurance.
- In order to protect against loss of earnings, a combined health and accident daily allowance insurance must be taken out. By choosing a waiting period of at least 30 days, a daily allowance of the required amount can be insured at a manageable premium.
- As a supplement to the minimum state disability, survivors’ and old-age pensions provided by the AVH, it is necessary to take out disability and survivors’ pension insurance policies that meet your needs. Business debts can be insured with death benefit insurance. Retirement provision is to be built up by making payments into the voluntary Pillar 2b occupational pension scheme or Pillar 3a.
non-family employees
The obligatory personal insurance for non-family employees in agriculture is:
- AHV/IV/EO, family allowances, unemployment insurance
- Health insurance basic insurance
- Daily sickness benefits insurance: According to standard cantonal employment contracts, non-family employees are required to take out daily sickness benefits insurance against loss of wages as a result of incapacity to work due to illness. As a rule, the insurance benefit corresponds to 80% of the salary.
- Accident insurance in accordance with the UVG offers protection against occupational accidents and, for employees who work at least eight hours a week, also against non-occupational accidents. As a comprehensive insurance, it covers medical costs in particular, grants daily accident benefits and disability and survivors’ benefits – but only in the event of an accident and not in the event of illness.
- Pension fund according to BVG: non-family employees over the age of 18, with an annual salary of more than CHF 22,050 and employment that lasts longer than three months, are subject to the mandatory occupational pension scheme. In addition to disability and survivors’ pensions, retirement savings are also insured from the age of 25.
It is also voluntary for non-family employees to take out outpatient resp. supplementary hospital insurance.
Conclusion
It is obvious that the insurance protection for non-family employees is largely regulated by mandatory provisions. However, daily allowances and pension benefits in particular are directly dependent on the amount of the insured salary – if this is low for part-time employees, for example, the benefits of the compulsory insurance are often not substantial and must also be supplemented by voluntary insurance. It is also possible to build up substantial and comprehensive insurance cover for family members who work in agriculture.
It is important that insurance protection against short- and long-term consequences of illness, accident and old age is set up in good time and according to needs – the family members who work there must become active themselves. Agrisano’s agricultural insurance advice centers support both groups of people in setting up the correct insurance cover.
*The author works at the Agrisano Foundation.
