Sickness daily allowance (KTG)
Sickness daily allowance insurance covers loss of earnings during incapacity to work through illness; it is not mandatory by law but is prescribed by many collective agreements and replaces the employer’s statutory duty to continue paying wages.
Definition
Without insurance, wage continuation under the Code of Obligations applies: for a limited time, graduated by years of service, according to the cantonal scales. With insurance, the insurer takes over after the waiting period; eighty per cent of salary for up to 720 days is customary.
The premium is often split in half, but this is a matter of negotiation or is set in the collective agreement. On the payslip it appears as a separate deduction.
Where to read it
What the software must be able to do
You need a separate wage type with its own rate and waiting period, plus absence management that counts sick days. For filing with the insurer, Swissdec certification of the sickness daily allowance branch is the check.
Checked Aug 2026
More terms under Payroll, staff and expenses: Accident insurance (UVG) AHV contributions BVG and pension fund Collective agreement rules Construction agreement Coordination deduction Cross-border workers Employer’s payroll costs Expense flat rates Expense policy Extra-mandatory pension cover Family allowances Gross and net pay Holiday pay in cash Hospitality agreement Hospitality collective agreement IV and EO Maternity allowance Owner’s salary Payslip Pension (BVG) deductions Pillar 3a Private share Salary statement Secondary employment Staff meals Swissdec ELM Thirteenth month salary Unemployment insurance (ALV) Withholding tax Work permits Working-hours recording (ArG)