A planned overhaul of unemployment rules for cross-border workers in the European Union could prove costly for Switzerland. Ambassadors from EU member states have backed a change that would shift responsibility for unemployment benefits from a worker’s country of residence to the country where they were last employed.
Under the current system, in place since 2004, cross-border workers in Switzerland pay into the Swiss unemployment-insurance scheme. But if they lose their job, they claim benefits in their country of residence. To balance the books, Switzerland compensates neighbouring countries—namely France, Germany, Austria and Italy—for a limited period. These reimbursements typically cover three months, or up to five in exceptional cases. According to State Secretariat for Economic Affairs, they totalled CHF 283.3m last year.
The proposed reform would reverse that arrangement. Cross-border workers would receive unemployment benefits from the country in which they were last employed, provided they had worked there for at least 22 weeks. Twenty-one EU member states support the change, though it still requires formal approval from the European Parliament.
If applied to Switzerland, the implications could be significant. Under Swiss law, those with a sufficient contribution record can receive unemployment benefits for up to two years—far longer than the current reimbursement period. With more than 400,000 cross-border workers employed in Switzerland as of late 2025, according to federal data, the potential costs could be substantial, though officials say they are difficult to estimate. Swiss unemployment payments are generous, rising as high as CHF 118,560 a year for two years—this is for someone earning CHF 148,200 or higher, who has a family, and has paid into the Swiss unemployment insurance fund for at least two years—more information here.
The reform forms part of the broader framework governing free movement between Switzerland and the EU. Any change would require Switzerland’s explicit consent, notes the State Secretariat for Economic Affairs.
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