In Switzerland, IJM (Daily Sickness Allowances) refers to sickness loss-of-earnings insurance. It ensures the payment of income to employees in the event of incapacity for work due to illness, beyond the employer’s minimum statutory obligations under the Code of Obligations.
IJM insurance is not mandatory at the federal level, but it is widely used by companies in order to: secure employees’ income in the event of illness, limit the financial risk for the employer, and standardize the management of sickness absences.
1. To complete the IJM salary policy, click on Human Resources in the left-hand side menu.
2. From the displayed options, select Salary Policy.
3. Go to the IJM tab.
4. Select the reference year.
5. Create the group to which the IJM policy applies. This allows you to apply specific rules to a set of employees or entities, depending on your organization.
6. Enter the group name and click Confirm.
7. If your company uses electronic transmission via Swissdec, enable the option Electronic Salary Declaration (ELM). This allows the automatic exchange of payroll data with social insurance institutions.
8.Then enter the information related to the insurer: Name of the fund/insurer, Insurer number, Insurer address, Insurer UID-BFS (or indicate “unknown”), Customer number, Contract number, and Contract validity date.
9. You can attach the contract with the compensation fund by uploading the corresponding document (PDF or image).
10. Define one or more IJM solutions. A company may have several IJM solutions depending on the type of employees, the desired level of coverage, and the conditions negotiated with the insurer.
11. For each IJM solution, specify: name of the IJM insurance solution, IJM code (defined by the insurer), insured annual salary from and to (to define the salary range covered by the insurance), employee rate (male / female), and employer rate (male / female).
Rates may vary depending on the contract and the negotiated conditions.
12. The allocation of IJM contributions depends on the contract: they may be fully borne by the employer, fully borne by the employee, or shared between both. Sequence ERP allows this allocation to be configured precisely so that it is correctly reflected on payslips.
13. Finally, click Save.
Once the CAF salary policy has been completed, along with all other policies, you will be able to specify which groups apply specifically to each of your employees, so that the corresponding contributions are correctly applied in their contracts.