Swiss companies can now claim short-time-work (Kurzarbeit) compensation for up to 24 months instead of 18, after an amendment to the Unemployment Insurance Ordinance took effect on 1 November 2025. The Federal Council approved the extension on 8 October in response to a parliamentary mandate aimed at helping export-oriented industries that are still struggling with weak global demand and supply-chain disruptions.
Short-time-work subsidies reimburse 80 % of lost wages when employers temporarily reduce working hours. During the pandemic the instrument became a lifeline for Swiss-based manufacturing, watchmaking and hospitality groups, many of which rely on foreign assignees. By raising the cap to two years (until 31 July 2026), Bern gives HR teams additional room to bridge cyclical slumps without triggering redundancies or costly repatriations. The change applies retroactively to existing schemes, so employers already in their 18th month may prolong applications immediately.
![New 24-month short-time-work ceiling enters into force, giving multinationals more flexibility]()
International mobility managers should review assignment budgets: salaries paid under Kurzarbeit continue to count as Swiss-sourced income, which means tax and social-security reporting obligations remain unchanged. However, cross-border commuters from France, Germany and Italy may need to submit revised A1 certificates if their working pattern shifts below 25 % in the home state.
Cantonal labour offices have issued updated forms and digital portals automatically reflect the new duration. Companies must still file a monthly claim and demonstrate an expected workload recovery within the subsidy period. Failure to do so can trigger repayments and penalties.
The extended ceiling is expected to cost the unemployment-insurance fund an extra CHF 540 million, financed by existing payroll contributions. The government will review uptake in mid-2026 to decide whether to revert to the standard 12-month limit.
Short-time-work subsidies reimburse 80 % of lost wages when employers temporarily reduce working hours. During the pandemic the instrument became a lifeline for Swiss-based manufacturing, watchmaking and hospitality groups, many of which rely on foreign assignees. By raising the cap to two years (until 31 July 2026), Bern gives HR teams additional room to bridge cyclical slumps without triggering redundancies or costly repatriations. The change applies retroactively to existing schemes, so employers already in their 18th month may prolong applications immediately.
International mobility managers should review assignment budgets: salaries paid under Kurzarbeit continue to count as Swiss-sourced income, which means tax and social-security reporting obligations remain unchanged. However, cross-border commuters from France, Germany and Italy may need to submit revised A1 certificates if their working pattern shifts below 25 % in the home state.
Cantonal labour offices have issued updated forms and digital portals automatically reflect the new duration. Companies must still file a monthly claim and demonstrate an expected workload recovery within the subsidy period. Failure to do so can trigger repayments and penalties.
The extended ceiling is expected to cost the unemployment-insurance fund an extra CHF 540 million, financed by existing payroll contributions. The government will review uptake in mid-2026 to decide whether to revert to the standard 12-month limit.
