Maternity leave in Switzerland and your finances

The first few weeks after the birth of a child are a special time. By law, women in Switzerland are entitled to maternity leave and compensation for loss of earnings. Many companies in Switzerland go well beyond the minimum legal requirement and pay their employees a full salary during maternity leave. However, if they do not do so, paid maternity leave can give rise to certain financial difficulties. In such cases, women can suffer significant financial losses as a result, especially high earners. Read the article to find out why this is the case and what you should be aware of.

In Switzerland, paid maternity leave starts from the day the child is born and ends after a maximum of 98 days or 14 weeks. It must be taken in a single block. Maternity leave can be ended early, but by law a minimum of eight weeks must be taken. If a mother starts working again directly after the mandatory eight weeks, she will no longer be eligible for further payments, as she will be receiving her regular salary from her employer. After the birth, Swiss labor law also ensures 16 weeks of employment protection, during which a woman cannot be dismissed by her employer.

Women who take maternity leave in Switzerland are generally entitled to 80 percent of the average earned income they received before giving birth. However, the maximum amount to which they are entitled is set at CHF 220 per day, or CHF 6,600 per month. This means that women in well-paid positions will receive a significantly lower income during maternity leave compared to their regular job. For high earners, i.e., women who earn more than CHF 8,250 per month, the money received during maternity leave will thus be much lower.

What’s more, women are still required to contribute to their employer’s pension fund while on maternity leave, further reducing the benefits they receive during this period. Their employer deducts the same amount as before they gave birth. However, the law does allow for this deduction to be reduced if it would otherwise lead to an excessive financial burden during maternity leave.

Since 1 January 2021, the child’s father is also entitled to at least two weeks of paternity leave in the first six months after the birth of the child. The same conditions apply to him as to the mother. He can take these two weeks in one go or spread them over different days. During these two weeks, his allowance for loss of earnings is the same as for the mother. The father is entitled to 80 percent of his average salary up to a maximum of CHF 220 per day.

In the case of high-earning couples or couples with two incomes, an even bigger salary gap then arises. The father’s loss of earnings should also be considered, depending on the couple’s situation – in particular because it may coincide with the mother’s reduced income. However, statutory paternity leave is much shorter.

It goes without saying that having a baby has serious financial repercussions, especially since many women choose to extend their maternity leave beyond the statutory amount in the form of unpaid leave. Every woman should make sure they understand the financial challenges that arise as a result. Several companies offer longer maternity leave than the amount set by law and, in some cases, also pay a full salary.

Even if you decide to return to work full-time after maternity leave, it is worth considering how you will pay for childcare and the various other costs involved with raising a child. At any rate, it is important to address the topic of parenthood and maternity leave early on and to plan your finances looking as far ahead as possible. For example, if you plan to work part time after maternity leave, this may have a greater impact on your retirement savings, especially those in pillar 2.

It is therefore a good idea to continue paying into your private pillar 3a account if you can – even if you earn less than before. Plan your retirement proactively to maintain your standard of living in old age. Find out how to do this in our article “Planning your retirement as a woman”.

For more tips and information about family and finances, why not also sign up for our “Family” learning path?