Tips against unpleasant surprises: These are the biggest risks of working part-time

Unlike neighboring countries France, Italy, Austria and Germany, there is no legal right to work part-time in Switzerland. Part-time work used to be reserved primarily for mothers, but today it is becoming increasingly popular among men and those without children. Swiss companies are also expanding into the part-time model. “More and more companies want to encourage part-time work and are setting the relevant framework conditions in collective bargaining agreements,” says Michel Lang, head of social partnership at the Swiss Trade Association. This development is also progressing in industries where it is difficult to work at least part-time. The part-time construction project was launched in 2018 to encourage part-time work in painting and plastering. Why: If you don’t offer part-time jobs, you’ll miss out on many well-skilled workers.

Fly: If you want to reduce your workload, you should clarify this with your employer at an early stage so that your employer has the opportunity to make any organizational changes.

However, there is a risk of being at a disadvantage when it comes to overtime, for example. Because the legal maximum working hours are – depending on the type of work – 45 or 50 hours per week. Anything above this is overtime and is legal only in exceptional cases. Anyone who works only 30 hours a week is legally allowed to work 15 to 20 hours of overtime per week. Expert Lang says: “Part-time models offer a high degree of work autonomy, greater flexibility and better compatibility with private life. “But these also come with the risk of self-exploitation and therefore overtime, which can have a long-term impact on workers’ well-being.”

Attention: Provided that there is no collective bargaining agreement, the exact manner in which overtime will be paid can be regulated very flexibly in the agreement. The law provides for a 25 percent wage supplement, but the employer may exclude this depending on the contract.

Fly: Read the contract carefully and negotiate whether the statutory surcharge should be reduced.

Employees are threatened with another bad deal. Arranging work on demand is attractive for companies. This means: You work irregularly and without guaranteed working hours; The employer decides when and for how long you will be assigned. However, this situation is not advantageous for employees: Basically, there is no fixed income, only the time actually worked needs to be paid. At the same time, these working models regularly lead to debates about continuing to pay wages in the event of illness, accident, maternity and disability.

Expert Lang also observes with concern that more and more companies are opting for on-call work: “But this is associated with a certain level of planning uncertainty and financial uncertainty. This hinders retirement and career opportunities for many young people.” Because part-time workers have less career opportunities. That’s why you should consider heavy workloads carefully and ideally don’t go below 80 percent. Also keep in mind: It’s often difficult to increase your workload later.

Fly: If possible, ask for a fixed monthly salary with fixed working days.

Most people don’t think about how working part-time affects unforeseen life events. “For most people, short-term interests come to the fore, such as having more time for hobbies or family,” says budget consultant Andrea Schmid.

There are a few catches to this. On the one hand, many people fail to maintain a financial buffer in good times. On the other hand, the logical consequences of loss of income are not considered. «Imagine being unexpectedly affected by short-term work, layoff or accident. “Such events cause revenue to fall.” So money can run out quickly.

Fly: Save a pillow to smooth transitions. Additionally, part-time work increases the risk of poverty in old age. Women are still affected twice as often as men; This is because women are more likely to work part-time for long periods and short periods.

Part-time work affects the provision of pensions. But this is often overlooked. “For many people, retirement planning seems too complicated and they turn a blind eye to it,” says expert Schmid. When deciding to work part-time, it is important to know whether you will have enough money when you get older. If state, professional and private provisions are not sufficient, the workload is very low.

Fly: Calculate your retirement situation. With the detailed calculator from the women’s umbrella organization Alliance F, you can roughly calculate your state and occupational pension allowance in just a few steps. You can also see how children, marriage, divorce and career change affect your pension. If that’s not enough, you can build up the rest through Pillar 3a and any investments and savings. As this example shows, it’s worth starting early enough: Even if you have retirement savings of 100,000 francs in the third column, you’ll only get 416 francs a month with an additional investment return of 2 percent – assuming you’re still alive. It has been 25 years since retirement age. If you’re not earning enough part-time to pay enough for the third pillar, you should increase your workload. The maximum amount you can pay into Pillar 3a does not depend on your level of employment. Even part-time workers will be able to pay a maximum of 7,056 francs a year into the third pillar, provided they are connected to a pension fund. Otherwise, 20 percent of your net income may be paid. For example, you can calculate your private retirement savings using Moneyland’s Pillar 3a calculator.

From the age of 50 at the latest, it is recommended to carefully check your retirement income to close any gaps and adjust your workload if necessary. You may see gaps in the statement from the AHV account, which can be closed within five years. That’s why it’s important to order a free declaration every few years. At the beginning of each year you need to receive a pension fund or pension certificate from the pension fund along with the expected PF pension. Otherwise, you can request it free of charge from the retirement fund. You can get free advice from the compensation office.

Fly: Separation, child or career change: Calculations vary depending on stage of life. Schmid recommends re-evaluating the optimal workload at each stage of life. From a purely financial perspective, it is advisable to keep low part-time working periods as short as possible. “At some point the planning process starts to move forward and then it becomes almost like going to the hairdresser on a regular basis. It loses complexity.” If in doubt you are advised to seek advice.

The lower your income, the less tax you have to pay. Assuming you live in Steffisburg BE, you are unmarried, 35 years old, have no children, and do not belong to any religious denomination. With a full workload you earn 78,000 francs gross per year. Net wages are used to calculate taxable income. Your net taxable income after deducting social security contributions (AHV, pension fund contributions, etc.) is around 70,000 francs. More than 18 percent of the net wage then goes to taxes for the canton, the municipality and the federal government. If you reduce the workload to 60 percent, taxes drop to just under 14 percent. However, the tax burden varies from municipality to municipality.

Fly: Easily calculate your taxes using the federal tax calculator. You can also deduct professional expenses, such as food costs and commuting expenses, from your taxable income. These expenses generally decrease as the workload decreases. Payments made into the third column can also be deducted.

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