Switzerland Explores Time Credit Accounts for Career Breaks
A novel approach to financing career breaks is being explored in Switzerland, with the Swiss government considering the model of a time credit account, successfully trialled in Germany. This model aims to address the financial challenges often faced during breaks, such as missed social insurance and pension contributions.
The Sotomo Institute's February 2025 survey involving over 2300 linguistically integrated individuals in German and Western Switzerland revealed a positive reception for time account models in pension preparation. These models allow employees to save time, which can later be converted into financial resources for breaks.
Researchers at Lucerne University of Applied Sciences are currently developing a model for advance financing of breaks. This model aims to benefit a wider range of individuals, not just high earners or those with employer-financed leave. It plans to enable financing through saving time and direct cash payments, without long-term financial disadvantages.
An interactive advisory tool is also planned to help employees strategize the duration and extent of their break. This tool will assist in managing potential gaps in provisions without employer support. While taking a longer break can lead to such gaps, it can also improve work-life balance, increase satisfaction, and benefit companies with fewer sick days and stronger employee loyalty.
The goal of this innovative model is to integrate it into the existing pension system for security and tax reasons. By doing so, it aims to make career breaks a viable option for people with low income, ensuring that everyone has the opportunity to enjoy the benefits of a well-deserved break.
