Part-time work is becoming increasingly popular with families. A Swiss Life study shows: in 62 percent of households with children, one parent works at a reduced level of employment. Do you also work part-time or would you like to reduce your working hours in the near future? We will give you the most important tips as guidance.
Childcare, household, work-life balance – Swiss parents have many reasons to work part-time. But reducing your working hours does not necessarily only bring advantages. If you decide to work part-time, less than 90 percent, you should pay attention to a number of things.
Swiss Life can provide you with some valuable part-time tips so you can enjoy being self-determined and working part-time without any unwelcome surprises.
The nine most valuable tips for part-time employment
Tip 1: Better part-time than time off
Are you thinking of taking an extended career break? Of course, there are cases where a career break is essential due to physical or psychological strain. Nevertheless, we would like to recommend that you stay in a job if at all possible so as to minimise any pension shortfall.
A professional challenge is also good for your self-confidence. It prevents you being left out in the cold, which can affect your career. Another advantage is you and your partner both contribute to the shared income. No one is dependent on the other.
Tip 2: Draw up a family budget
Part-time employment will finally allow you more time for your family and yourself. However, it is important to keep an eye on the budget. Compare income and outgoings – so you can face the future with financial confidence and shape your family life with self-determination.
Tip 3: Calculate the level of employment
Part-time employment is seductive. This is also shown by our study: 92% of Swiss parents would like to work part-time. But can they afford it? The Swiss Lift part-time calculator helps you find the right employment level for you.
How comfortably can you afford part-time work? Find out – with just a few clicks.
Tip 4: Level of employment of at least 60%
The more time you and your family have outside work, the more self-determined you can be about spending time with your loved ones. Nevertheless, please note: if you work less than 60 percent, there may be major gaps in your pension cover. That’s because if you have an income under CHF 21 330 (entry threshold), your pension fund contributions do not apply and you will only receive the minimum AHV pension of CHF 1175 at retirement – a sum that does not even cover the basic subsistence level.
Tip 5: Payments into the 3rd pillar
Remember your private provisions to avoid serious consequences in old age. The reduced level of employment means you pay less into the AHV and pension fund. That means reduced benefits in the event of disability or old age. In order to determine the gaps in coverage early on, you can request an AHV statement from your social security administration office and offset any shortfall going back five years.
Pillar 3a doesn't just close pension gaps and help you save for retirement – it also protects you from the consequences of disability and death.
Tip 6: Pension fund purchase
You can make up gaps in coverage caused by part-time work through a 100% tax-deductible purchase in the pension fund.
Tip 7: Keep a balanced workload
You have deliberately chosen a part-time job. So make sure you don't overstretch and work too much. As a worst case scenario, you will work 10 or 20 percent more than planned, but still only get your part-time salary. This calls for a high degree of personal responsibility!
Tip 8: Take out accident insurance
This is very important: you are only insured through your employer for a non-occupational accident if you work for the employer for at least eight hours a week. Otherwise, only occupational accidents are covered and you should definitely include non-occupational accident cover in your private health insurance.
Tip 9: Concluding a common-law partnership contract
You're not married to your partner? Then you should consider a common-law partnership contract. In the event of separation, your pension fund contributions will not be divided. If you have only a low income, you will therefore only receive a low pension. The common-law partnership contract is designed to prevent this by regulating the income situation in the event of separation.
Image source: Caroline Hernandez, Unsplash
Would you like optimal protection for your family?
You should consider your provisions situation in a self-determined manner as a family – so you can enjoy a carefree future. Our advisors will be happy to support you.