Support measures for entrepreneurs, employers, employees and the self-employed during the Coronavirus pandemic.
To mitigate the economic consequences of the spread of the new Coronavirus, the Federal Council of the Swiss Confederation decided to introduce a comprehensive aid package ("the Programme") already in March 2020. It is currently estimated to be worth over CHF 60 billion. The aim of introducing the Programme is to maintain liquidity, avoid mass lay-offs, maintain employment, ensure stable wage payments and help the self-employed.
Aid for enterprises - bridging loans
Due to the closure of many companies and the fall in demand for their services, more and more companies have less and less liquid funds to cover their current costs. The package of additional funds is intended to prevent further difficulties for businesses.
The program offers an immediate aid with the use of bridging loans amounting to 10 % of the company's turnover. The maximum amount of the bridging loan under the program is CHF 20 million.
If the amount of the loan does not exceed CHF 500,000, it is disbursed by the bank without the need for the application to be considered in substance. Loans up to this amount are interest-free. If the amount of credit applied for exceeds CHF 500,000, the application is subject to a substantive consideration. The application should be answered as soon as possible. The interest rate for a bridging loan exceeding CHF 500,000 up to a maximum of CHF 20 million is generally 0.5 per cent.
The bridging loan must be repaid within 5 and in exceptional cases within 7 years.
Deferral of public law liabilities
Companies affected by the crisis can also count on deferred payment of social security contributions (AHV/IV/EO/ALV) or tax liabilities (CIT, customs or VAT) without the obligation to pay default interest between 21 March 2020 and 31 December 2020.
Kurzarbeit - shortened working hours
Short-time work (Kurzarbeit) must be requested by the employer - however, the entitled employees must give their consent. The prerequisite for this is that there is a loss of work of at least 10 percent for at least four weeks in a row.
In such a situation, unemployment insurance covers 80% of the employee's lost salary with the short-time work allowance.
This is best illustrated by the following example: The full-time employee A is paid CHF 5000 per month. The employer had to reduce his working hours by 50 percent. In this case the employer pays CHF 2 500 and 80 % of the lost wage is covered by the insurance. An important piece of information is that the basis for calculating social security contributions remains the same and will remain the same, in the example given, CHF 5000.
Registration takes place through a form at the relevant canton office. The application can be submitted by post or by e-mail, also by phone, but it must then be confirmed in writing. Employees must be informed and agree to apply reduced working hours for them. If a worker does not agree, he or she will not receive this compensation and – worst case - can expect to receive a notice of termination, as the employer will not be able to afford to hire him or her any further.
Fixed-term employees, students, employers or their spouses employed by their companies or by one of their spouses are also entitled to short-time working for the duration of the COVID period.
Compensation is not payable to employees who are in the notice period.
Self-employed
Self-employed persons who have lost their earning opportunities due to the Coronavirus pandemic and the restrictions introduced can also count on compensation. When applying, it should be remembered that the amount of compensation is calculated in daily rates depending on the amount of income declared to social security.
If you have any questions, please contact us:
info@lexcellence.swiss
+41 41 521 80 00
Resources:
https://www.seco.admin.ch/seco/de/home/Arbeit/neues_coronavirus.html
https://www.seco.admin.ch/seco/de/home/Arbeit/neues_coronavirus/liquidit...
