How temporary workers do not lose connection in occupational benefits provision

In Switzerland, over 400,000 people are employed temporarily every year – particularly often in sectors such as industry, logistics, construction or care. For many, this form of employment is a meaningful step for re-entry, for professional reorientation or as a transitional solution. For others, it is a permanent reality. What they all have in common: safeguarding in occupational benefits provision is considerably more demanding than for permanently employed staff.

In the picture: Granit Kabashi, Head of Sales German-speaking Switzerland and Ticino at Tellco

Emergence of pension gaps

The BVG system is designed for continuous, stable employment relationships. Temporary workers, on the other hand, often change the assignment company or work in smaller employment levels. As a result, the entry threshold to the 2nd pillar is frequently not reached. In addition, the fixed coordination deduction noticeably reduces the insured salary – especially at lower incomes. Over the years, this leads to pension gaps that can result in considerable financial losses at retirement age.

Practical solution approaches

Granit Kabashi, Head of Sales German-speaking Switzerland and Ticino at Tellco, shows in the current article in the Handelszeitung how flexible BVG models provide remedies here. Crucial are models that enable seamless access to occupational benefits provision also with fixed-term or smaller employment levels. In this way, both employees and employers benefit.

Temporary work is an integral part of the Swiss labour market. To ensure that it does not automatically lead to pension gaps, solutions are needed that take into account the particularities of this form of employment. Which models have proven themselves in practice and which opportunities they open up, you can find out in the full article.