The Swiss Welfare System

Abstract

Despite all of this preventative effort, some Swiss do find themselves at times in poverty. Such people are served, not by the federal social insurance programme, but by the local communities and the cantons. The differences between Swiss social insurance and public assistance are carefully maintained because these differences serve a necessary function. The social insurances are administered by the central (Federal) government, but public assistance is operated by the local communities and cantons. Social insurance benefits are distributed on the basis of prior coverage during employment, with matched contributions by employee and employer.