Switzerland's insurance system has a reputation for complexity, but the mandatory layer is actually well-structured once you break it down. There are five insurances everyone has to deal with — two you handle yourself, and three your employer takes care of via salary deductions. Plus motor vehicle insurance, which only applies if you drive.
This overview explains each one in plain English: what it covers, who pays, and what you need to do about it.
The two you must actively buy
1. KVG — Basic Health Insurance
Who needs it: Everyone living in Switzerland, regardless of age, nationality, employment status, or permit type.
Who pays: You. Premiums are not withheld from your salary — you pay them directly.
Cost: CHF 280 to CHF 550 per adult per month, depending on canton, age, Franchise, and model.
Deadline: Three months from your arrival date. You choose an insurer, they cover you retroactively to day one.
KVG is identical by law across all 40+ providers. You choose the insurer, deductible (Franchise), and model — but the benefits catalog is federally regulated. Read our full guide on KVG health insurance for details.
2. AHV/IV/EO — State Pension & Disability
Who needs it: Everyone who lives or works in Switzerland from age 18 (non-working) or age 17 (working).
Who pays: Employers deduct it automatically; self-employed people file and pay directly; non-working residents pay based on wealth and pension income.
Cost: 10.6% of your gross salary — split 50/50 between you (5.3%) and your employer (5.3%). Unlimited, no cap.
AHV is the first pillarof the Swiss three-pillar pension system. It provides a basic state pension, disability pay if you become unable to work, and loss-of-earnings compensation (EO) during military or civil service. It's the Swiss equivalent of Social Security. You can't opt out and you can't negotiate the rate.
Minimum contribution years
3. BVG — Occupational Pension (2nd Pillar)
Who needs it: All employees earning more than CHF 22,680 per year from one employer.
Who pays: Employer and employee split contributions, minimum 50/50. Many employers pay more than half.
Cost: 7% to 18% of your insured salary (varies by age — older employees contribute more). Split with employer.
BVG, also called the pension fund(Pensionskasse), is your workplace retirement savings. Your employer chooses the fund. Your contributions are deducted before tax and grow over your working life. When you leave an employer, the balance follows you — either to your new employer's fund or to a vested benefits account (Freizügigkeitskonto) if you're between jobs.
4. UVG — Accident Insurance
Who needs it: All employees.
Who pays:
- Occupational accidents (BU): your employer pays 100%.
- Non-occupational accidents (NBU): the employee pays (deducted from salary) — but only if you work 8+ hours per week for that employer.
Cost: NBU is typically 1% to 2.5% of gross salary.
UVG covers medical costs, loss of income (80% of salary), disability pensions, and survivor benefits after any accident. If you're employed 8+ hours per week, you can and should remove accident coverage from your KVG— because you're already covered by UVG. This saves around 7% on your health insurance premium.
Self-employed people need separate cover
5. Motor Vehicle Insurance
Who needs it: Anyone who registers a vehicle in Switzerland.
Who pays: The vehicle owner.
Cost: CHF 700 to CHF 2,500 per year depending on car, driver history, coverage level, and canton.
You cannot register a car at the cantonal motor vehicle office (Strassenverkehrsamt) without proof of mandatory third-party liability insurance. It covers damage you cause to other people, their vehicles, or their property. Collision coverage (Kasko) for your own car is optional but strongly recommended for newer vehicles.
Quick-reference table
| Insurance | Mandatory? | You arrange? | Typical cost |
|---|---|---|---|
| KVG (health) | Yes | Yes | CHF 280–550/month |
| AHV/IV/EO | Yes | No (employer) | 5.3% of salary |
| BVG (2nd pillar) | Yes (employees) | No (employer) | 3.5–9% of salary |
| UVG (accidents) | Yes (employees) | No (employer) | 1–2.5% for NBU |
| Motor liability | Only if you drive | Yes | CHF 700–2,500/year |
Next steps
Mandatory doesn't mean "everything you need" — just what the law requires. Most Swiss households also carry personal liability and household contents insurance, which are practically essential even if not legally required.
Want a personalized map of what you need vs. what you have? Take our free risk analysis — it takes about 5 minutes and covers all 18 relevant insurance types.