# The India Employee Benefits Stack for Swiss companies

> Swiss parents are used to state pension and accident insurance run through payroll, a compulsory pension fund, and health insurance that is the employee's own purchase. In India the employer buys health cover, owes gratuity after five years and pays maternity leave directly. Those three shifts drive most of the first-year budget surprises.

By Akshay Golechha, Chief Business Officer at Plum (https://www.linkedin.com/in/akshaygolechha/). Published by Plum (https://www.plumhq.com). Canonical: https://www.plumhq.com/india-benefits-stack/switzerland. Updated 2026-10-05. Part of The India Employee Benefits Stack: https://www.plumhq.com/india-benefits-stack.

## In short

- Swiss employees buy their own basic health insurance; Indian employees expect the employer to provide it. Above ₹21,000 a month India has no statutory health cover, so employers buy Group Health Insurance, expected from ₹8 LPA.
- AHV/IV maps to EPF (12% employer plus 12% employee on basic) and UVG accident insurance to the Employees' Compensation Act plus Group Personal Accident. India adds gratuity, a statutory lump sum after five years of service.
- Staff seconded from Switzerland can stay in Swiss AHV/IV for up to 72 months under the India–Switzerland social security agreement, in force since 29 January 2011, if they hold a certificate of coverage.

## Questions

### Do we have to provide health insurance in India if Swiss staff buy their own?

For employees earning up to ₹21,000 a month, yes: ESI is compulsory, at 3.25% from the employer and 0.75% from the employee. Above that line the law requires nothing, but candidates hired at ₹8 LPA and above expect employer-paid Group Health Insurance. The premium is deductible under Section 36(1)(ib) and is not a perquisite under Section 17(2).

### Do Swiss secondees have to contribute to EPF in India?

Not if they hold a certificate of coverage under the India–Switzerland social security agreement, in force since 29 January 2011. It keeps them in Swiss AHV/IV for up to 72 months. Without the certificate, a foreign national employed in India is an International Worker and contributes to EPF on full salary, with no ₹15,000 ceiling, from day one.

### Is there an Indian equivalent of the BVG pension fund?

No. EPF is India's compulsory retirement scheme, at 12% from the employer and 12% from the employee on basic pay, with 8.33% of the employer share going to EPS. The other statutory retirement-linked cost is gratuity: 15 days' last drawn salary per year of service after five years, capped at ₹20 lakh. Death cover usually comes from Group Term Life.

### Who pays for maternity leave in India?

The employer. Under the Maternity Benefit Act a woman gets 26 weeks of full pay for her first two children and 12 weeks from the third, paid directly by the employer; ESI pays it for ESI members. That is longer than the Swiss 14 weeks and at 100% of salary. There is no statutory paternity leave under central law.

### Does accident insurance work like UVG in India?

No. The Employees' Compensation Act 1923 makes the employer liable for work injuries of employees not covered by ESI, and the employer insures that liability. Off-duty accidents have no statutory cover at all. Group Personal Accident is the usual add-on, alongside Group Term Life at 3 to 5 times CTC for white-collar staff.

## What changes when you come from Switzerland

### Assignees from Switzerland and India's EPF

**The rule.** Foreign nationals employed in India are International Workers under EPF. They must join from day one, with contributions on full salary: the ₹15,000 wage ceiling does not apply.
**Switzerland and India.** India and Switzerland have a social security agreement in force since 29 January 2011. Staff seconded from Switzerland with a certificate of coverage stay in Swiss AHV/IV and are exempt from Indian EPF for up to 72 months. The agreement covers secondments and refunds of AHV contributions, not pension export. Get the certificate before the first Indian payroll run.

### Mapping Swiss benefits to India

**At home.** AHV/IV/EO and unemployment insurance through payroll, a compulsory BVG pension fund, UVG accident insurance, and basic health insurance that each employee buys individually.
**In India.** EPF for pension, ESI below ₹21,000 a month and employer-paid Group Health Insurance (GHI) for everyone else. Gratuity is a statutory lump sum after five years: fund it through an insured gratuity scheme rather than carrying it as an unfunded liability.

### Overlap between Zurich and India

**Time difference.** India is 3½ hours ahead of Zurich and Basel during European summer time (late March to late October) and 4½ hours ahead in winter. India does not change its clocks, so 9:00 in Zurich is 12:30 or 13:30 in India.
**What to set up.** Agree who in India signs off endorsements, claims escalations and renewals, so nothing waits for headquarters' business hours.

### India–Switzerland tax treaty

**Treaty.** India and Switzerland have a double taxation avoidance agreement signed in 1994 and amended by protocols in 2000 and 2010; the 2010 protocol has been in force since 7 October 2011. Short visits are usually exempt from Indian tax under the treaty's 183-day and employer conditions; check the exact article before relying on it.
**Secondments.** Long secondments can create a permanent establishment for the parent. Structure recharges and employment contracts with a tax advisor before staff move.

## What you call it in Switzerland, and what it is called in India

Every resident of Switzerland buys basic health insurance (KVG/LAMal) individually, at a per-head premium that averages CHF 393.30 a month in 2026, and the employer pays nothing towards it. India reverses that. Below ₹21,000 a month, employees sit in ESI, funded 3.25% by the employer and 0.75% by the employee. Above that line India has no statutory health cover at all, and the employer is expected to buy Group Health Insurance (GHI). Candidates hired at ₹8 LPA and above treat it as standard.

| At home in Switzerland | In India | What changes for the employer |
| --- | --- | --- |
| Basic health insurance (Grundversicherung (KVG/LAMal)): Compulsory for every resident and bought individually. Per-head premium, not salary-based: CHF 393.30 a month on average in 2026. No employer contribution. | ESI for employees at or below ₹21,000/month; employer-paid Group Health Insurance (GHI) for everyone else | The purchase moves from employee to employer. GHI is voluntary in law but expected by candidates hired at ₹8 LPA and above. India's median sum insured is ₹5 lakh; global startups in India carry ₹10 lakh. Spouse, children and parents are covered only if the policy includes them. |
| First-pillar social insurance (AHV/IV/EO (AVS/AI/APG)): Old-age, survivors', disability and income-compensation insurance: 10.6% of salary with no ceiling, 5.3% each from employer and employee. | EPF and EPS (Employees' Provident Fund and Pension Scheme) | 12% employer plus 12% employee on basic wages, with 8.33% of the employer share going to EPS. Like AHV, there is no ceiling for International Workers. Under the Labour Codes, allowances above 50% of total remuneration are added back into wages for EPF. |
| Occupational pension fund (Pensionskasse (BVG/LPP)): Compulsory occupational pension for salaries above CHF 22,680 a year; the employer pays at least half. It also carries death and disability cover. | EPF on full basic; EDLI life cover of up to ₹7 lakh through EPFO | There is no second pillar to fund. Most MNC subsidiaries contribute to EPF on full basic rather than the ₹15,000 ceiling. Death cover comes from Group Term Life, commonly 3 to 5 times CTC for white-collar staff. |
| Accident insurance (Unfallversicherung (UVG/LAA)): Compulsory for employees. The employer pays occupational accident premiums; non-occupational premiums may be deducted from pay. Salary insured up to CHF 148,200. | Employees' Compensation Act 1923 (or ESI where covered) plus Group Personal Accident (GPA) | No compulsory accident insurer. The employer carries the Employees' Compensation Act liability for work injuries of staff outside ESI and insures it. Off-duty accidents have no statutory cover; Group Personal Accident is the usual voluntary cover for them. |
| Unemployment insurance (Arbeitslosenversicherung (ALV/AC)): 2.2% of salary up to CHF 148,200 a year, split equally. | No direct equivalent | Nothing to contribute. Exit costs in India sit in notice pay and gratuity rather than in an insurance scheme. |
| Sick pay (Lohnfortzahlung und Krankentaggeld): The employer must continue pay in illness for a limited period under the Code of Obligations; many insure it through collective daily sickness allowance cover. | Sick and casual leave under state law; ESI for employees at or below ₹21,000/month | Above the ESI line, the statutory floor is the sick-leave days in state law. Decide in the leave policy what happens in a long illness; Group Personal Accident covers accidental disability only. |
| Maternity allowance (Mutterschaftsentschädigung (EO)): 14 weeks at 80% of earnings, up to CHF 220 a day, paid through income compensation insurance. Fathers get two weeks on the same terms. | Maternity Benefit Act: 26 weeks of full pay for the first two children, 12 weeks from the third; no statutory paternity leave | Longer, at full salary, and paid by the employer rather than a social insurer, unless the employee is in ESI. GHI covers the hospital bill: about ₹1 lakh for a normal delivery and ₹1.25 lakh for a C-section. |
| Paid holidays (Ferien (Art. 329a OR)): At least four weeks of paid holiday a year; five weeks up to age 20. | Earned leave under the state Shops and Establishments Act (offices) or the Factories Act (factories) | Earned leave is typically 12 to 18 days a year, plus casual and sick leave, and varies by state. Public holidays also vary by state; only three are national. |
| 13th salary (13. Monatslohn): Customary but not statutory: owed only where the contract or collective agreement provides it. | No equivalent; statutory bonus (8.33% to 20%) for employees earning up to ₹21,000 a month | Indian offers are quoted as annual CTC, so a 13th payment is usually folded into it or paid as a bonus. Check how it sits against the Labour Codes' 50% wages rule before fixing the structure. |
| Family allowances (Familienzulagen (FAK/CAF)): Child and education allowances funded by employer contributions to a cantonal family compensation fund. | None | Nothing to contribute. Indian employees value family health cover instead; parents account for about 40% of claims by relationship in Plum's data. |

## What Swiss companies get wrong when they set up in India

1. **Health insurance is the employee's own business, as at home.** Below ₹21,000 a month, ESI is compulsory and the employer pays 3.25%. Above it there is no statutory cover, and candidates hired at ₹8 LPA and above expect employer-paid Group Health Insurance. A cash allowance instead is taxable salary; the employer's premium is deductible under Section 36(1)(ib).
2. **Spouses and children each carry their own policy, so we insure employees only.** Indian GHI is designed as family cover, with spouse and children on the employee's policy. Parents are the largest claims category by relationship, about 40% of claims in Plum's data. Decide on parental cover at policy design, not at renewal.
3. **Accident insurance covers employees on and off the job.** There is no UVG. The Employees' Compensation Act covers work injuries of staff outside ESI, and the employer insures that liability itself; nothing statutory covers off-duty accidents. Group Personal Accident is the usual voluntary cover.
4. **Maternity pay runs through income compensation insurance, not payroll.** Under the Maternity Benefit Act the employer pays 26 weeks of full salary directly, nearly twice the Swiss 14 weeks and at 100%, not 80%. ESI pays it only for ESI members.
5. **A second-pillar pension fund is compulsory, so we need one in India.** India's compulsory retirement scheme is EPF: 12% employer plus 12% employee on basic. The other statutory obligation is gratuity, 15 days' last drawn salary per year of service after five years, capped at ₹20 lakh. A BVG-style fund is optional.
6. **A 13th salary is standard practice everywhere.** India has no 13th-month custom; offers are quoted as annual CTC. Statutory bonus of 8.33% to 20% applies only to employees earning up to ₹21,000 a month.
7. **Seconded staff stay in AHV automatically.** Only with a certificate of coverage under the India–Switzerland agreement, in force since 29 January 2011, and for up to 72 months. Without it, a Swiss national employed in India is an International Worker and contributes to EPF on full salary from day one.

## Switzerland vs India, benefit by benefit

| Benefit | Switzerland | India |
| --- | --- | --- |
| Statutory health cover | Compulsory for every resident, bought individually from a health insurer. | ESI for employees earning up to ₹21,000 a month. Nothing above that line. |
| Who pays for health cover | The employee: a per-head premium averaging CHF 393.30 a month in 2026, plus a deductible. | The employer: 3.25% into ESI below the line, a voluntary GHI premium above it. |
| Family members | Each family member is insured and billed separately. | Spouse and children added to the employee's GHI; parents optional, about 40% of claims by relationship. |
| First pillar | AHV/IV/EO at 10.6% of salary, no ceiling, split equally. | EPF and EPS at 12% employer plus 12% employee on basic pay. |
| Second pillar | BVG pension fund compulsory above CHF 22,680 a year; employer pays at least half. | No equivalent. Most MNC subsidiaries contribute to EPF on full basic rather than the ₹15,000 ceiling. |
| Lump sum on leaving | Vested pension fund benefits move to the next employer's fund. | Gratuity: 15 days' last drawn salary per year of service after five years, capped at ₹20 lakh. |
| Accident cover | UVG compulsory, on and off the job; salary insured up to CHF 148,200. | Employees' Compensation Act for work injuries; Group Personal Accident bought voluntarily. |
| Maternity | 14 weeks at 80%, up to CHF 220 a day, through income compensation; two weeks' paternity leave. | Employer pays 26 weeks of full salary. GHI covers the hospital bill. No statutory paternity leave. |
| Paid leave | At least four weeks a year; five up to age 20. | Earned leave typically 12 to 18 days plus casual and sick leave, set by state law. |
| Unemployment insurance | 2.2% of salary up to CHF 148,200, split equally. | None. Exit costs sit in notice pay and gratuity. |
| 13th salary | Customary where agreed in the contract; not statutory. | No equivalent. Statutory bonus of 8.33% to 20% for employees earning up to ₹21,000 a month. |

## Staff seconded from Switzerland

Seconded staff usually hold an international health policy, but an India-admitted GHI is still worth adding: it gives cashless admission at network hospitals without an advance deposit. Under the India–Switzerland social security agreement, a secondee with a certificate of coverage stays in AHV/IV and is exempt from EPF for up to 72 months. Without the certificate, EPF applies on full salary from day one, so apply to the compensation office before the posting starts.

## Where Swiss companies set up in India

- **Bengaluru, Karnataka.** ABB India's headquarters, Bühler's Indian operations and Swiss Re's business services centre. Mostly engineering and service staff above the ₹21,000 ESI line, where GHI is expected.
- **Hyderabad, Telangana.** Novartis runs a large global service and development centre here. A competitive capability-centre market, with most hiring above ₹8 LPA, where candidates expect Group Health Insurance.
- **Pune and Satara, Maharashtra.** Schindler's elevator plant at Chakan, UBS's technology centre in Pune and Rieter's textile-machinery plant at Koregaon. Plants follow the Factories Act; offices Maharashtra's Shops and Establishments Act.
- **Mumbai, Maharashtra.** Indian headquarters of Schindler and Roche, plus Swiss banks, insurers and flavour and fragrance houses. Corporate and finance staff, almost all above the ESI line.
- **Delhi NCR, Haryana.** Nestlé India's headquarters in Gurugram, with factories across north India. Plant workers below ₹21,000 a month sit in ESI; office staff need GHI.

Swiss companies with operations in India include Nestlé, Novartis, Roche, ABB, Schindler, UBS, Swiss Re, Zurich Insurance, Sika, Bühler, Givaudan, SGS, Kuehne+Nagel, Rieter.

## Benchmarks: what MNCs and GCCs offer in India

From [The Standard of Employee Benefits 2026–27](https://www.plumhq.com/standard-of-employee-benefits), Plum's report on 15,312 benefit plans, 5,20,100 claims and 74,543 checkups from Plum's FY26 book.

- **1.6×** MNC and GCC benefits spend per employee in India, against a funded Indian startup (nearly 3× a local Indian business). ([source](https://www.plumhq.com/standard-of-employee-benefits#s2-3))
- **43%** of MNCs and GCCs in India are Holistic Leaders: deep insurance plus real breadth of healthcare beside it. ([source](https://www.plumhq.com/standard-of-employee-benefits#s2-3))
- **₹7,50,000** median MNC/GCC sum insured, covering parents or in-laws, with ₹1,00,000 maternity cover and no copays or sub-limits. ([source](https://www.plumhq.com/standard-of-employee-benefits#s2-3))
- **~2%** of payroll buys India's top-quartile plan, against roughly 15% in the US, 10–25% across Europe and 8–15% across APAC. ([source](https://www.plumhq.com/standard-of-employee-benefits#s2-3-coverage))

## Further reading on plumhq.com

- [How MNCs structure health insurance for Indian subsidiaries](https://www.plumhq.com/blog/mnc-health-insurance-india-subsidiary-structure): Global programmes, local policies and who signs what.
- [Do you need to match headquarters' benefits in India?](https://www.plumhq.com/blog/gcc-match-headquarters-benefit-standards-india): Where to mirror the parent plan, and where India needs its own design.
- [Insurance for expatriate employees in India](https://www.plumhq.com/blog/insurance-coverage-expatriate-employees-gcc-india): Covering seconded staff alongside the local plan.
- [Group insurance vs ESI: a guide for employers](https://www.plumhq.com/blog/group-insurance-vs-esi-employers-guide): Who must be in ESI, and where group health insurance takes over.
- [How to calculate gratuity in India](https://www.plumhq.com/blog/how-to-calculate-gratuity): Formulas, worked examples and a free calculator.
- [The Standard of Employee Benefits 2026–27](https://www.plumhq.com/standard-of-employee-benefits): Benchmarks from 4,500+ Indian employee health plans.

Sources: Federal Social Insurance Office (BSV) and Information Centre AHV/IV: leaflet 2.01 on AHV/IV/EO contributions and changes from 1 January 2026; Federal Office of Public Health (BAG), health insurance premiums 2026 (press release, 24 September 2025) and FAQ on compulsory health insurance; Information Centre AHV/IV, maternity and paternity allowance under the EO; KMU portal of the Swiss Confederation, unemployment insurance (ALV) contributions; Swiss Code of Obligations, Art. 329a (holidays); Agreement on Social Security between India and Switzerland, in force 29 January 2011; India–Switzerland Double Taxation Avoidance Agreement (1994) and 2010 Protocol, Notification No. 62/2011 (incometaxindia.gov.in); Code on Social Security 2020 and Code on Wages 2019, in force 21 November 2025.