Public Welfare Policy in Switzerland


The country of Switzerland, officially the Swiss Confederation, has a comparatively meager public welfare system. As such, Switzerland is often classified as the model liberal-market economy of continental Europe, and stands out amongst other continental European states due to its small, means-tested welfare program. The OECD cites Switzerland's social expenditure as 19.6% of their gross domestic product, a rate that parallels other liberal-market states' spending rates.

History

The welfare state arose in Switzerland in the late 19th century, and its existence and depth varied individually by canton. Some of the programs first adopted within Swiss cantons were emergency relief, elementary schools, and homes for the elderly and children. The Swiss Confederation's 1945 constitutional mandate introduced a maternity allowance for Swiss women, yet Parliament's inability to pass laws funding the programs resulted in stalled implementation until 2004.

Overview

policies include pensions, income compensation and family allowances. These programs are funded via contributions from earned income by citizens, an economic policy comparative to conservative market economies in other Christian Democratic states throughout Europe.
Switzerland's AHV program is an income-replacement system for elderly citizens unable to work or their survivors. This system is funded via income taxation and redistributed to recipients to ensure the individual's ability to afford subsistence. Disability insurance is similarly provided to those unable to work due to birth defect, disease or accident. Family allowances are distributed to Swiss families by the government to compensate for the costs of raising children. Each child rates an individual family allowance package.