EU Jobless Reform Could Cost Switzerland Up to CHF 900 Million
A proposed reform by the European Union on unemployment insurance rules for cross-border workers could significantly increase costs for Switzerland, according to estimates from the State Secretariat for Economic Affairs.
The Swiss government agency warned that the planned changes could result in additional annual expenses ranging between CHF 600 million and CHF 900 million (approximately $771 million to CHF 1.1 billion).
The reform, currently being discussed within the European Union, aims to change the system for paying unemployment benefits for cross-border workers.
Under the new proposal, responsibility for unemployment payments would shift from the worker’s country of residence to the country where the individual last worked before becoming unemployed.
SECO published the cost estimates on its official website, following earlier reporting by the Swiss newspaper Neue Zürcher Zeitung.
However, Swiss authorities stressed that the figures remain highly uncertain due to limited data on unemployed cross-border workers.
Officials stated that a more accurate financial assessment will only be possible once the final version of the EU regulation is approved.
Before implementation, the proposal must be accepted by both the EU Council and the European Parliament. An EU diplomat reportedly expressed confidence that the reform is likely to pass.
The issue is particularly important for Switzerland due to its large number of cross-border workers from neighboring EU countries, especially in regions such as Geneva, Basel, and Ticino.
Experts warn that any change in benefit responsibility could place additional pressure on Switzerland’s unemployment insurance system and federal budget.
