{"id":48728,"date":"2026-09-13T19:37:26","date_gmt":"2026-09-13T17:37:26","guid":{"rendered":"https:\/\/www.zulaufgmbh.ch\/?p=48728"},"modified":"2026-09-13T19:37:26","modified_gmt":"2026-09-13T17:37:26","slug":"alignment-and-extension-of-benefits-under-the-earnings-replacement-scheme-eo-with-effect-from-1-july-2027","status":"publish","type":"post","link":"https:\/\/www.zulaufgmbh.ch\/en\/alignment-and-extension-of-benefits-under-the-earnings-replacement-scheme-eo-with-effect-from-1-july-2027\/","title":{"rendered":"Alignment and extension of benefits under the Earnings Replacement Scheme (EO) with effect from 1 July 2027"},"content":{"rendered":"<p>On 26 August 2026, the Federal Council decided to enact the amendments to the Income Replacement Scheme Act (EOG), titled \u2018Harmonisation of Income Replacement Scheme Benefits\u2019, and the supplementary provisions of the Income Replacement Scheme Ordinance (EOV) with effect from 1 July 2027.<\/p>\n<p>The current benefits under the EOG are those provided to people performing military, civilian or civil defence service. In addition, they include benefits for mothers and fathers, the mother\u2019s spouse, and parents of children with severe health problems or parents of adopted children. These were introduced at different times. With each new benefit, there have previously been various implementation issues for businesses. The proposed amendment will not make the situation any easier.<\/p>\n<p>The major changes can be read in the communication linked below: (in German)<br \/>\n<a href=\"https:\/\/www.admin.ch\/de\/newnsb\/H1kkO6iNTyPiN3YFktVAY\">https:\/\/www.admin.ch\/de\/newnsb\/H1kkO6iNTyPiN3YFktVAY<\/a><\/p>\n<ul>\n<li>All recipients of EO benefits (not just those performing military service) are now entitled to employer allowances and allowances for childcare costs.-&gt; These types of compensation must be claimed by the person concerned, who will then receive a direct payment. There is no longer any entitlement to an additional family allowance according to the EOG.<\/li>\n<li>The following extended benefits raise questions, amongst other things, regarding the employer\u2019s obligation to continue paying salaries and the amount of benefits payable under the EOG:<\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Maternity allowance in the event of the mother\u2019s prolonged hospital stay<\/li>\n<li>Compensation for the other parent in the event of the child\u2019s death<\/li>\n<li>Extension of entitlement to childcare allowance in the event of a child\u2019s hospitalisation<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>Click here for the comprehensive explanations from the Federal Social Insurance Office (BSV):<br \/>\n<a href=\"https:\/\/sozialesicherheit.ch\/de\/reform-der-erwerbsersatzordnung-staerkt-familien\/\">https:\/\/sozialesicherheit.ch\/de\/reform-der-erwerbsersatzordnung-staerkt-familien\/<\/a><\/p>\n<p>&nbsp;<\/p>\n<p>Why am I writing this blog when the changes won\u2019t come into force for nearly a year? Because there is a lot to be done \u2013 not only by the authorities, but also by the companies themselves. The time remaining should be used to decide what needs to be done and to make any necessary adjustments.<\/p>\n<p>The introduction to the amendments to the EOV already provides some indication of the complexity involved in implementing the existing and new provisions from 1 July 2027. (free translation into English)<\/p>\n<ul>\n<li><em>Necessary adjustments resulting from the extension of the allowance for childcare costs and the allowance for business costs;<\/em><\/li>\n<li><em>Withdrawal of the provisions relating to child allowance;<\/em><\/li>\n<li><em>The necessary amendments to extend the care allowance to cover cases where the hospital stay lasts at least four days, and to ensure coordination with the care allowance for serious health problems.;<\/em><\/li>\n<li><em>Extension of maternity allowance in the event of a prolonged hospital stay by the mother:<\/em><\/li>\n<li><em>Clarifications and coordination for cases where both the mother and the newborn are hospitalised;<\/em><\/li>\n<li><em>Clarifications required regarding the continuation of compensation for the other parent following the death of the child;<\/em><\/li>\n<li><em>Various editorial amendments, in particular regarding the use of the term \u2018service allowance\u2019 instead of \u2018basic allowance\u2019 and \u2018total allowance\u2019 \u00bb.<\/em><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>The various changes do not only affect the EOG. They also impact many other aspects. Companies should address these issues.<\/p>\n<p>The situation within companies is not the same everywhere:<\/p>\n<ul>\n<li>The employment contract refers to the benefits provided for by law, without listing the various types of benefit individually.<\/li>\n<li>EO benefits are set out in the staff regulations and include provisions regarding the level of continued pay, etc. In this case, a decision must be made as to whether the additional benefits should be supplemented on a case-by-case basis or whether the focus should instead be on the exceptions provided for under statutory provisions (e.g. continued pay for a mother during maternity leave who was on a significantly higher salary prior to giving birth).;<\/li>\n<li>Amendments to company-specific guidelines and information sheets<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>At the very least, the HR department or the payroll team should be familiar with the new and additional types of leave so that they can apply the regulations correctly.<\/p>\n<p>Which typical questions lead to different answers depending on the regulations or the type of leave?<\/p>\n<ul>\n<li>Does the Swiss Code of Obligations provide for a right to annual leave regardless of whether EO compensation is paid, and what are the consequences of this?<\/li>\n<li>When is the amount of continued pay fixed, even if sickness benefit is not paid or does not cover the full salary? In which cases does this effectively result in leave without pay?<\/li>\n<li>For how long can family allowance be paid?<\/li>\n<li>In which cases does a blocking period apply to the termination of an employment contract? In what circumstances can holiday entitlement be reduced?<\/li>\n<li>Are there any provisions in a collective labour agreement applicable to the company that stipulate a higher and\/or longer period of continued pay than those laid down in the Swiss Code of Obligations?<\/li>\n<li>To which compensation office must the EO benefit be reported?<\/li>\n<li>Which salary should be declared for the relevant EO benefit?<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>Whilst the provision for parents of children with severe health problems has so far rarely, if ever, needed to be implemented within companies, the entitlement to continued pay and benefits in the event of the hospitalisation of a child without a severe health condition is likely to apply more frequently in practice.<\/p>\n<p>&nbsp;<\/p>\n<p>What recommendations are there for implementing these measures within organisations?<\/p>\n<ul>\n<li>Understanding the new regulations coming into force on 1 July 2027<\/li>\n<li>An analysis of how previous benefits were implemented in detail (statutory benefits or additional voluntary benefits) and a proposal\/decision on the cases in which a similar approach should be taken for the new benefits<\/li>\n<li>Adaptation of provisions, explanatory notes and guidelines depending on the circumstances<\/li>\n<li>Changes to payroll accounting and time recording (type of absence) depending on the level of automation<\/li>\n<li>Adaptation of processes and controls within the organisation<\/li>\n<li>Staff information<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>Companies must also understand the new processes involved in the digitalisation of the EO. Initially, only benefits for those performing military, civilian or civil defence service are being digitalised. From 1 January 2027, all these areas should have been converted. Given the complexity of the remaining benefits under the EOG, full digitisation and automation are unlikely at this stage.\u00a0 It may be possible to digitise the processes for maternity allowance and the allowance for the other parent.<\/p>\n<p>&nbsp;<\/p>\n<p>At the news seminar on 27 November 2026, from 10.00 to 11.30 am, I will briefly outline the most important changes (in German): \u00a0\u00a0<a href=\"https:\/\/www.zulaufgmbh.ch\/kurse\/aktualitaeten-fuer-arbeitgeber-zum-jahreswechsel-2026-2027\/\">https:\/\/www.zulaufgmbh.ch\/kurse\/aktualitaeten-fuer-arbeitgeber-zum-jahreswechsel-2026-2027\/<\/a><\/p>\n<p>Depending on the feedback from those interested, we will consider organising an in-depth webinar.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On 26 August 2026, the Federal Council decided to enact the amendments to the Income Replacement Scheme Act (EOG), titled \u2018Harmonisation of Income Replacement Scheme Benefits\u2019, and the supplementary provisions of the Income Replacement Scheme Ordinance (EOV) with effect from 1 July 2027. The current benefits under the EOG are those provided to people performing [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":47952,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[47],"tags":[469,464,353,470,463,466,465,468,467],"class_list":["post-48728","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-social-security","tag-adoption-allowance","tag-civil-service","tag-continuation-of-payment","tag-eo","tag-eov","tag-maternity","tag-military-service","tag-other-absence","tag-paternity"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Alignment and extension of benefits under the Earnings Replacement Scheme (EO) with effect from 1 July 2027 - Zulauf Consulting &amp; Trading GmbH<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.zulaufgmbh.ch\/en\/alignment-and-extension-of-benefits-under-the-earnings-replacement-scheme-eo-with-effect-from-1-july-2027\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Alignment and extension of benefits under the Earnings Replacement Scheme (EO) with effect from 1 July 2027 - Zulauf Consulting &amp; Trading GmbH\" \/>\n<meta property=\"og:description\" content=\"On 26 August 2026, the Federal Council decided to enact the amendments to the Income Replacement Scheme Act (EOG), titled \u2018Harmonisation of Income Replacement Scheme Benefits\u2019, and the supplementary provisions of the Income Replacement Scheme Ordinance (EOV) with effect from 1 July 2027. 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