Covid-related compensation benefits extended again

Economics Minister Parmelin says the current compensation payment will be extended but should be abolished by the beginning of July. © Keystone/Anthony Anex

The Swiss government has extended a set of compensation schemes to help companies cope with the impact of the Covid pandemic.

Short-time working payments will be continued for up to 24 months for employees and companies can benefit from simplified administrative procedures, Economics Minister Guy Parmelin told a news conference on Wednesday.

Companies which are subject to tougher restrictions for their personnel, notably in the hospitality and event sectors, can also claim renewed payments.

The circle of beneficiaries has been extended to employees with limited work contracts, apprentices and those working on call.

However, the government plans to return to its regular policy in July. 

Last month, the government imposed new restrictions in a bid to contain the spread of the Omicron variant of the virus.

Precaution

Parmelin said the latest measures were a precaution as many companies could not rule out financial difficulties under the current pandemic situation and the curbs put in place.

The government introduced the compensation payments in March 2020 before extending them several times.

But the Organisation for Economic Co-operation and Development in its latest country report on Switzerland called on the government to abolish the state aid as soon as the restrictions on businesses are lifted.