We use cookies to optimise the operation of this site. By browsing this site, you accept the use of cookies. You will find more information on this subject on this page.
Musicians work in many different ways. How they are insured and how they can provide for their old age depends largely on whether they are self-employed or employees. The so-called Freischaffende (freelancers) are employees. Swiss social security law is primarily based on the employment status.
Musicians work in many different ways. How they are insured and how they can provide for their old age depends largely on whether they are self-employed or employees. The so-called Freischaffende (freelancers) are employees. Swiss social security law is primarily based on the employment status.
For the purposes of social insurance, a person is considered self-employed if he or she works in his or her own name, for his or her own account and at his or her own risk, is in an independent position, is not bound by instructions and is not integrated into the organisation of the client. Employees, on the other hand, are subject to the employer’s instructions, i.e. the employer may determine how, when and where work is to be done. The employee’s duty to work is offset by the employer’s duty to pay wages.
«Freischaffend» (Freelance) is not the same as self-employed. The majority of freelance musicians are employed for the duration of the respective engagement (e.g. orchestral musicians, chamber music formations, teaching at a music school, etc.). Self-employed musicians, on the other hand, are engaged under a variety of contractual forms, which can best be assigned to the law on contracts for work and services. However, the distinctions are often blurred.
On the Werkvertrag (contract for work and services): A “work” of an artistic or creative nature is owed. One might think of a concert contract or a composition commission (what is owed is the concert performance, the finished composition; this is called the “success”).
On the Auftrag (commission): What is owed is an activity for the client (but not a “success” as in the case of a contract for work and services). Commission law can apply, for example, to the relationship between a solo musician who is hired by a group for individual concerts, or the relationship between the band’s own sound engineer and the music group.
The status of the employment (self-employed/employed) is decisive for the subordination and/or the financing with most social insurances such as old-age and survivors’ insurance (AHV), disability insurance (IV), unemployment insurance (ALV), maternity insurance (EO), accident insurance (UV), occupational benefit scheme (BV), but also for the treatment under tax law.
Attention:
For freelancers who also work abroad, the free movement agreements with the EU must be observed. They are only subject to social security in one country. Principle: The social security law of the place of employment applies. (Ex.: If you live in Switzerland and work exclusively in Germany, you must be insured in Germany). Exception: If you work in more than one country, you must be insured in your country of residence if a substantial part of your professional activity (at least 25%) is also carried out in your country of residence. (Ex: If you live in Switzerland and have engagements in Switzerland, Austria and France, you must be insured in Switzerland). Artists must confirm to their foreign employers that they are insured in Switzerland using form A 1 (to be requested from the AHV Ausgleichskasse). The foreign employer either settles directly with the Swiss insurance companies or pays the employee his employer’s contribution in addition to his salary; the employee must then settle with the insurance companies in Switzerland herself.
Employed persons are insured against the consequences of unemployment. Self-employed persons are not subject to the unemployment insurance scheme; voluntary subordination is not possible. It is financed equally by the employer and the employee and amounts to 2.2% of the gross salary (an additional solidarity contribution of 1% is levied for annual salaries of CHF 148,200 or more). Employees are entitled to unemployment benefits if they:
Note: The number of daily allowances depends on the contribution period, the age of the insured person and the existence of maintenance obligations (persons under 25 or with maintenance obligations receive fewer or more daily allowances).
Insured persons who become unemployed in the last 4 years before reaching AHV age are entitled to an additional 120 daily allowances.
Those who do not find a job after training must accept a waiting period of 120 days and can then only receive a maximum of 90 daily allowances. Even those who are exempt from fulfilling the contribution period can only receive 90 daily allowances.
Many freelance artists do not achieve the required contribution period of at least 12 months, as their various engagements often do not merge seamlessly, and in some cases consist only of individual daily assignments. For this reason, the Federal Council has determined that for employees in professions where frequently changing or temporary employment is common, the first 60 days of such engagements are counted twice. This also applies to freelance musicians.
Caution: Anyone who is not prepared to look for a permanent position, even in a field outside his/her own profession if necessary, is not considered employable. In case of unemployment, it is therefore recommended to apply as broadly as possible and especially to look for permanent positions. Unemployed persons under the age of 30 must also accept any reasonable job, regardless of their qualifications.
The main benefits of unemployment insurance are adequate compensation for loss of earnings due to unemployment, short-time work, bad weather and employer insolvency. Furthermore, the insurance makes contributions for counselling and job placement or labour market measures (training, employment measures). The amount of the daily allowance is 70% – 80% of the relevant insured earnings, which is limited to a maximum of CHF 148,200. In the case of variable earnings, the average salary of the last 6 or (if more advantageous) 12 months before the start of the framework period counts.
Our social security system is based on 3 pillars: Old-age and survivors’ insurance (AHV), occupational pension provision (BV) and private pension provision (3rd pillar, not discussed further here). Inadequate old-age provision can also be compensated for by state supplementary benefits (EL).
Everyone who lives and/or works in Switzerland is insured under the AHV, i.e. employed and self-employed persons, but also persons who are not gainfully employed or who receive a disability pension.
In the case of employees, the AHV is paid by the employer. Employees and employers each contribute a total of 5.05% of the salary (AHV/IV); the employer bears the administrative costs. Self-employed persons settle their accounts directly with the AHV and pay their contributions themselves. The contribution rates depend on the level of income; from an annual income of CHF 57,400 they amount to 9.5% (AHV/IV, without EO).
For small salaries of less than CHF 2,300 per year, the employer only has to deduct AHV contributions if the employee expressly requests this. It is advisable to request AHV contributions for small wages as well, because otherwise these engagements will not be counted as contribution periods for unemployment insurance either.
Please note: The following employers must deduct AHV contributions for all their employees from the first franc: Dance and theatre producers, orchestras, phonographic and audio-visual producers, radio and television, schools in the artistic field.
Provided there are no missing contribution years, an AHV pension is at least CHF 1,195, at most CHF 2,390 (per month).
Employees who have an employment contract of at least 3 months duration and earn an annual salary of at least CHF 22,050 must be insured. Old-age, disability and death benefits are insured.
Freelancers with frequently changing and temporary engagements are excluded from the compulsory second pillar due to these entry thresholds (contract duration, minimum earnings). Self-employed persons are not subject to compulsory BVG insurance from the outset.
Voluntary insurance: Self-employed persons and freelancers with changing employers can take out voluntary insurance. If the various employers are informed about the insurance, they are obliged to contribute to the BVG contributions, even if the employment relationship lasts less than 3 months. However, the prerequisite is that the insured person earns an annual salary of at least CHF 22,050 in total, i.e. including all engagements. Self-employed persons pay their contributions in full themselves.
SMV-USDAM recommends that freelance musicians take out insurance either with the Pensionskasse Musik und Bildung or with the Charles Apothéloz Foundation CAST.
Recipients of AHV or IV pensions are entitled to supplementary benefits under certain conditions if their pensions are not sufficient to cover a minimum living cost. Artists in particular who do not have a pension fund and could not afford a private pension are often dependent on supplementary benefits.
Contributions to the EO (maternity/paternity/loss of earnings for service personnel) are 0.25% for employees and 0.25% for employers.
A person is disabled if he or she is likely to be totally or partially incapacitated for work for a longer period of time (incapacity for work is not the same as inability to work: a person who can no longer work in his or her usual occupation, but can work in another occupation, is not incapacitated for work).
The degree of disability is not determined medically, but economically: A comparison is made between what someone could earn as a healthy person and what he or she could still earn after becoming disabled. The difference is the degree of disability. Difficulties arise when determining the degree of disability of self-employed persons..
IV benefits are paid according to the principle of “integration before pension”: only when all occupational and medical measures have been exhausted is a pension paid. Pensions are graded according to the degree of disability (from 40% quarter pension, from 50% half pension, from 60% three-quarter pension, from 70% full pension). Provided that no contribution years are missing, an IV pension for full disability is at least CHF 1,195, at most CHF 2,390.
Many freelance artists do not earn a high income from their work. A person who is unable to work in his or her original profession (e.g. a musician with hearing loss), but who could medically perform another activity without restriction and earn a similar amount (e.g. an office job), is not disabled!
In addition to the IV, disability is also insured under the occupational pension scheme: If you have a pension fund, you also receive a pension from it (albeit limited in the case of disability due to an accident). In the case of disability due to an accident, the employer’s accident insurance also pays a pension. If this results in overinsurance (more than 90% of previous earnings), the various pensions are reduced.
Attention: If you become disabled due to illness and do not have a pension fund, you will only receive IV benefits (and supplementary benefits from the state, if applicable).
Liability towards organisers
No insurance is required for this, as the musician is only liable in the event of cancellation through his/her own fault (i.e. not in the event of illness, accident, etc.).
Cancellation by the organiser
If the organiser cancels the event after concluding a contract with the musician, he/she must still pay the agreed salary. However, the musician who has been released must take into account what he/she earned as a replacement income, or he/she must prove that he/she was unable to find a replacement engagement (which is of course unnecessary in the case of a cancellation at short notice).
Documents (in German)