Catering industry FAQ

If an employee falls ill or is unable to work as a result of an accident, military or civilian service or maternity, catering businesses must continue to pay the contractually agreed salary in accordance with Article 22 of the Accident Insurance Ordinance (UVV). This entitlement applies provided that the employee is not at fault; it is governed by Article 324a of the Swiss Code of Obligations (OR) and the Bern Scale.

Under the national collective employment agreement for the hospitality industry (L-GAV), catering businesses are required to take out daily sickness benefits insurance. This transfers the risk of having to make continued salary payments in the event of sickness from the employer to SWICA. 

Businesses can select their own waiting period, allowing them to determine how long they want to pay an employee’s salary in the event of sickness and when the daily sickness benefits insurance should kick in. The longer the waiting period, the lower the premiums, half of which can be deducted from the employee’s salary. Under the L-GAV, the deferral period, during which 88% of the gross annual AHV salary must be paid, may last a maximum of 60 days.

SWICA works with GastroSuisse to offer daily sickness benefits insurance in accordance with the L-GAV.

Mandatory accident insurance covers hospital and treatment costs, plus loss of earnings from the third day onwards. If an employee works more than eight hours a week for a single company, accident insurance covers both occupational and non-occupational accidents; otherwise only occupational accidents are covered.

Mandatory accident insurance also reimburses costs, e.g. the price of aids, travel, transport and rescue costs, disability and surviving dependants’ pensions, and impairment compensation and helplessness allowances.

Self-employed people can also take out voluntary accident insurance. The same benefits apply as under mandatory accident insurance.

Catering businesses are required by law to take out accident insurance for all employees. Self-employed people can choose to take out insurance.

Mandatory accident insurance consists of occupational and non-occupational accident insurance. 
Occupational accident insurance covers accidents during working hours and on the direct commute to or from work. Premiums are paid in full by the employer. 
Non-occupational accident insurance insures against accidents in employees’ own time. The premium for this is usually paid by the individual employee and deducted directly from their salary. 

SWICA works with GastroSuisse to offer accident insurance in accordance with the L-GAV.

Supplementary accident insurance (UVG) can be taken out as an add-on to mandatory accident insurance to cover additional benefits: 

• Daily sickness benefits for the first and second days after the day of the accident
• Daily sickness benefits in the amount of 20% of insured earnings from the third day after the accident for persons with support obligations
• Salary components above the maximum salary that is covered by mandatory accident insurance

At the same time, companies increase their attractiveness as employers by offering SWICA supplementary accident insurance, as part-time employees and temporary workers who do not work at least eight hours per week for any single employer are also insured against the full loss of earnings in the event of a non-occupational accident.
 

For catering businesses in Switzerland, daily sickness benefits insurance and accident insurance are the key social insurance schemes. Both are mandatory in the catering industry (daily sickness benefits according to the L-GAV, accident insurance according to the Federal Accident Insurance Act (UVG)). 

However, they differ significantly in their purpose, obligation and benefits. Whereas daily sickness benefits insurance covers loss of earnings in the event of sickness, UVG insurance protects against the financial impact of an accident.

• Hotels and catering businesses must enrol their employees for the AHV state social insurance scheme. This is the first pillar of Switzerland’s three-pillar pension system and is designed to cover basic subsistence needs. 
  
  The first pillar also includes invalidity insurance (IV) and supplementary benefits (EL), along with loss of earnings compensation for military service, civilian service and civil protection service (EO), maternity allowances (MSE) and unemployment insurance (ALV).
   
• An occupational pension (BVG) is also mandatory for anyone earning a salary of 22 680 francs or more per year that is subject to AHV contributions. The BVG forms the second pillar of Switzerland’s three-pillar pension system and allows retirees to maintain their accustomed standard of living after retirement.
   
• Under the L-GAV, catering businesses must take out daily sickness benefits insurance for their employees. This will continue to pay an individual’s salary in the event of a sickness-related absence (80% of gross salary).
   
• Under the Federal Act on Accident Insurance (UVG), all Swiss companies must insure their employees against occupational accidents. Accident insurance prevents a catering business or the affected individual from getting into financial difficulties in the event of an accident 
• . The third pillar is a private pension scheme that supplements AHV and BVG benefits and enables employees to make individual provision for additional financial security in old age and protect themselves against risks. It is voluntary and is covered by tax-advantaged (pillar 3a) or flexible (pillar 3b) savings and pension schemes.

Since the catering sector is subject to the L-GAV, there are a number of important points to consider when taking out a BVG solution:

• A uniform contribution rate applies, regardless of old-age bonuses.
• The 13th month’s salary, which is mandatory in the catering industry, is taken into consideration when calculating the salary threshold for mandatory insurance.

The Gastrosocial pension fund solution is directly geared to the requirements of catering businesses. Its many years of experience in the catering industry ensure that the pension fund complies with the L-GAV. Supplementary options enable businesses to insure higher salaries, guarantee better risk protection and insure gross AHV salaries without a coordination deduction being applied. 

The L-GAV governs all relevant employment relations between employees and employers in the catering and hotel sectors. It was negotiated between employer associations (GastroSuisse, HotellerieSuisse and SCA) and employee representatives (Hotel- und Gastro-Union, syna and UNIA) and is currently being renegotiated. The new L-GAV is due to enter into force in 2028.

For restaurants, cafés, bars, smaller hotels, guesthouses and B&Bs in particular, the L-GAV provides legal certainty and creates clear conditions for employers and employees. The L-GAV governs five key areas in particular
•    Conditions for commencing and terminating employment
•    Salaries
•    Working hours and free time
•    Compensation for loss of earnings in the event of employee absences 
•    Social security
Especially with regard to compensation for loss of earnings and mandatory insurance, it is crucial that businesses in the hospitality industry correctly understand and consistently implement the provisions of the L-GAV.

If you are unsure whether your business is subject to the L-GAV, please consult Article 2 of the agreement (Non-applicability), which also includes a list of roles that are excluded from its scope. In cases of uncertainty, the L-GAV Control Authority shall make a ruling. 

Salary deductions generally include social security contributions, insurance premiums and other individual deductions such as withholding taxes or accommodation costs, along with the contribution towards L-GAV enforcement costs. A snapshot of the main deductions can be found below:

Social security contributions are contributions to the statutory social insurance schemes and are calculated as a percentage of gross salary or insured salary. These include AHV/IV/EO and ALV (pillar 1) as well as occupational pensions (BVG; pillar 2).

• AHV/IV/EO:  5.3% of the gross annual AHV salary. The employer also contributes the same amount.
• ALV: 1.1% of the gross AHV salary. The employer also contributes the same amount.
• BVG: For individuals aged 18-25: 0.5%; over the age of 25: 7%
• Daily sickness benefits insurance: 50% of the insurance premium according to the current insurance policy
• UVG: non-occupational accident share of the insurance premium according to the current insurance policy

Please note: As the employer, you are responsible for deducting the relevant amounts and transferring them to the applicable social security entity, e.g. GastroSocial. 
 

Staff are the single biggest cost driver in the catering industry. However, certain minimum salaries must be paid, even if turnover is not as high as hoped. 

These minimums vary greatly depending on an individual’s level of education, age and type of employment. The current mandatory minimum salaries under the L-GAV can be found on the GastroSuisse website or in the L-GAV, Art. 10 Minimum salaries.

As a general principle, collective employment agreements (GAV) that have been declared universally binding throughout Switzerland, such as the L-GAV in the hospitality industry, take precedence over cantonal minimum salaries. The cantons of Geneva and Neuchâtel are exceptions: special “acquis” regulations apply here, as they have had cantonal minimum salaries for a very long time.

Yes. Under the L-GAV, catering businesses must pay their employees a 13th month’s salary equal to 100% of the average gross monthly salary, regardless of how successful the business has been in a given year.

Employees have a pro-rata entitlement in relation to partial years.