The Federal Council Corrects the Wage Comparison for the Determination of IV Degree
Published: Wednesday, Oct 18th 2023, 11:41
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The Swiss Federal Council has amended the regulations of the Invalidity Insurance (IV) system to reduce the hypothetical wages used to calculate the degree of invalidity by 10% from 2024. This is in response to a demand from the Parliament. The degree of invalidity (IV-degree) determines the amount of the IV pension. It is calculated by comparing the income a person earned before their invalidity and what they can still earn with their invalidity. For those without income, a hypothetical wage is used. This wage is usually higher than what people with disabilities can earn, resulting in a lower IV-degree and pension, or no pension at all. The amendment is expected to affect around 30,000 people who do not receive a full IV pension. It is estimated to cost the IV an additional 82 million francs per year, as well as 14 million francs for additional training and 30 million francs for occupational benefits. The federal government will cover 5/8 of the costs, with the cantons covering the remaining 3/8.
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