Summary

The Federal Department of Economic Affairs, Education and Research (EAER) is preparing an extension of the maximum benefit duration for short-time work compensation (SWC). The Federal Council is to receive a corresponding proposal before summer 2026, provided that the economic situation does not fundamentally change. Since October 2025, companies have been able to receive SWC for up to 24 months; this regulation expires on 31 July 2026. An ordinance revision is required to extend the 24-month limit beyond this date. The expert group on economic forecasts expects an unemployment rate of 3.0% in 2026.

Persons

  • No individuals named

Topics

  • Short-time work compensation (SWC)
  • Labour market policy
  • Economic forecasts
  • Unemployment insurance

Clarus Lead

The planned extension responds to persistent economic uncertainty: the geopolitical situation remains tense, the Middle East conflict heightens risks, and global industrial activity is stagnating. With this move, the Federal Council signals planning security to decision-makers in companies beyond summer 2026 – an important signal at a time when businesses must plan restructuring measures. The extension is intended to give companies time to adapt to weak revenues and develop new business opportunities without having to immediately reduce their workforce.

Detailed Summary

The current SWC regulation is based on an urgent revision of the Unemployment Insurance Act from September 2025. It allows the Federal Council to temporarily increase the maximum benefit duration to 24 months – a measure that has been valid since 8 October 2025 and automatically expires on 31 July 2026. To extend beyond this deadline, a formal ordinance revision is required.

The justification for an extension is based on economic conditions: the Federal expert group on economic forecasts predicted on 18 March 2026 an increase in the unemployment rate to an average of 3.0% in 2026. This scenario meets the legal condition for an extension – that labour market prospects for the next twelve months show no signs of improvement. The State Secretariat for Economic Affairs (SECO) continuously monitors both domestic and foreign economic developments. All other eligibility requirements remain unchanged; every company must meet all legal criteria to receive SWC – an individual case review is mandatory.

Key Messages

  • The EAER plans to extend the SWC maximum benefit duration beyond 31 July 2026 and will submit a proposal to the Federal Council before summer 2026.
  • The current 24-month regulation is based on an urgent revision from September 2025 and will expire without an ordinance amendment.
  • Weak economic conditions, geopolitical tensions, and an expected unemployment rate of 3.0% in 2026 justify the extension plans.

Critical Questions

  1. Evidence: What specific economic indicators (sector losses, revenue declines, employment trends) does the EAER base its forecast on that an extension is necessary? Are scenarios with and without an extension being compared?

  2. Conflicts of Interest: Which sectors benefit disproportionately from the SWC extension, and were their associations involved in the preparation? Are there interest representatives arguing against an extension?

  3. Causality: To what extent is it proven that SWC extensions actually lead to job retention or new business opportunities, rather than slowing companies' adaptation? What alternatives (e.g. retraining programmes) have been examined?

  4. Feasibility: How is it ensured that individual case reviews do not lead to delays with expected higher utilisation? What resources does SECO need for this?

  5. Timeline: Why is the decision only being made before summer 2026 when the current regulation already expires on 31 July 2026? Is there a risk of a gap?

  6. Financing: What costs arise from a multi-month or multi-year extension, and how are these covered in unemployment insurance?

Source Directory

Primary Source: Short-Time Work Compensation: Preparation for Extension of Maximum Benefit Duration – news.admin.ch, 02.04.2026

Supplementary Sources:

  1. Federal Expert Group on Economic Forecasts – Forecasts from 18 March 2026

Verification Status: ✓ 02.04.2026

This text was created with the support of an AI model. Editorial Responsibility: clarus.news | Fact-Check: 02.04.2026