Switzerland: Temporary Increase in the Possible Duration of Short-Time Work Compensation from 18 to 24 Months

Due to the current Swiss labor market forecasts and the uncertainty arising from the newly introduced U.S. tariffs – particularly affecting Swiss export industries – the Federal Council decided on October 8, 2025, to temporarily extend the maximum duration of short-time work compensation from 18 months to 24 months.

 

General Requirements for Short-Time Work Compensation

An employee may be entitled to short-time work compensation if the following conditions are met:

• The employee is required to pay unemployment insurance contributions, or has not yet reached the minimum age for compulsory contributions to the Old-Age and Survivors’ Insurance (AHV)
• Qualifying loss of work present (generally at decrease of at least 10% of the target working hours due to economic reasons and being unavoidable)
• Employment relationship has not been terminated
• Loss of work is expected to be temporary

 

Amendment of AVIG

In order to extend the duration of short-time work compensation, the Unemployment Insurance ACT (AVIG) has been amended. Swiss Parliament adopted modifications to Art. 35 para. 2 and 4 AVIG, authorizing the Federal Council to extend the maximum benefit period by up to twelve months. The amendment remains in force until December 31, 2028.

 

Maximum Short-Time Work Compensation Period

The Federal Council made immediate use of the amended legal provision. As of November 1, 2025, the maximum short-time work compensation period is 24 months instead of 18 months. This extension applies on a temporary basis and remains in effect until July 31, 2026.

If you have any questions about eligibility or the registration process, we’ll gladly assist.