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Old 05.08.2020, 16:15
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RAV / Interim Earnings/ Einzelfirma

Hi Everyone,

Due to COVID, I was laid off from my job which I had here in Zurich the past 6 years on a full time contract. I have a C permit (non-EU).

I have a few questions here as it relates to RAV that I was hoping someone with more experience might be able to comment on;

1. I was making 15k/month salary and so I am well aware that I will not receive the full 70% of my income. As I understand, I will be eligible for the max RAV (with no dependents) of around 8,500 CHF / month.

a. If I make interim earnings in a month of 5k, how much will I still make from RAV in that month?

b. If I make interim earnings of 70k (in one payment, due to a unique consulting agreement), how does this impact RAV?

2. If I plan to try to do some 'freelance' consulting during RAV, I assume I need to set up an Einzelfirma (sole proprietorship) in order to appropriately declare this income in Switzerland. Is this correct?

I appreciate any insights anyone has as it relates to having had an income in excess of the RAV cap as well as freelance consulting while on RAV.
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Old 05.08.2020, 19:20
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Re: RAV / Interim Earnings/ Einzelfirma

My feedback:

1. Yes, the maximum monthly gross amount for a job seeker without dependents is: 148'200 x 70% / 12 = 8'645

a. The interim work calculation by the ALK (Kasse) should be:
12'350 - 5'000 = 7'350 x 70% = 5'145
Your total monthly earnings would then be:
5'145 + 5'000 = 10'145

b. The fact that it is one payment for 12 months of work should not be a consideration, imo.

2. Individuals should apply for self-employed status with the SVA when annual earnings are expected to exceed 2'300. The SVA will normally take care of applying for a UID business registration number for the individual. If the individual expects to have only one or two customers, employment by a temporary staffing agency or possibly incorporation, e.g., a GmbH should be considered.

Hope this helps and good luck!
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Old 05.08.2020, 20:22
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Re: RAV / Interim Earnings/ Einzelfirma

Thanks! This is really helpful.

Could you embellish a bit about the last part?

I am just a bit confused overall by the concept of 'interim earnings'? What is the difference between having normal interim earnings vs being 'self employed'?

I would rather stay on RAV than become self employed as I don't think I'll have that many customers, I just happen to have 1-2 consulting like agreements that I can do right away.
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Old 06.08.2020, 09:17
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Re: RAV / Interim Earnings/ Einzelfirma

RAV allows interim work as self-employed for 12 months for those up to age 45 (and for the entire length of qualified period for those over 45). The RAV Zurich special office for self-employment has this relevant comment on its website (translated):


"In the course of your job search, you may receive an offer to work for a limited period of time, but not as an employee. Instead, you may arrange this activity with the client as a self-employed person. This can be considered as a self-employed interim income that you must declare to the unemployment insurance fund."


https://www.zh.ch/de/wirtschaft-arbe...tml#2114010240


Although RAV is supportive of such activities, the difficulty may come with the SVA social security administration which normally does not consider self-employment to involve only one or two clients. Then it is often necessary to engage a payroll service as the legal employer, or to buy or set up a legal entity to employ the contractor (probably not suitable for short-term "self-employment").



In the first meeting with the RAV adviser it would be advisable to discuss the possibility of working as a contractor for a client. The RAV adviser may then outline the next steps on how to proceed or will possibily send you to the Zurich Fachstelle Selbständigkeit (which, btw, appears still to be closed due to Corona).
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Old 27.08.2020, 17:27
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Re: RAV / Interim Earnings/ Einzelfirma

Quote:
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Thanks! This is really helpful.

Could you embellish a bit about the last part?

I am just a bit confused overall by the concept of 'interim earnings'? What is the difference between having normal interim earnings vs being 'self employed'?

I would rather stay on RAV than become self employed as I don't think I'll have that many customers, I just happen to have 1-2 consulting like agreements that I can do right away.


I have some experience with this, but still find it confusing. My impression is that they consider someone who is self-employed along the lines of a plumber with multiple customers. Self-employed is a legal status. The concept of freelance work where you have occasional clients as an interim solution doesn't seem to fit in the boxes here. This article may help provide clarification on the difference between self-employed and independent (just found it now!):
https://www.avenir-suisse.ch/en/the-independent-worker/



If you work while unemployed you complete a form "gain intermediaire" (in French) where you declare your earnings - either as a salary or income you receive from consulting in your case. The RAV would then supplement any difference in earnings.


I also registered with the AVS to be on the safe side and obtained independent status despite only have a few clients. They will probably be in a better position to advise you and whether to give you "independent status", which some employers may request. I would not set up a company as this will remove your rights to unemployment benefit.

Last edited by eireann; 27.08.2020 at 17:44.
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Old 02.09.2020, 13:17
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Re: RAV / Interim Earnings/ Einzelfirma

Hi All, I need some guidance about my options.

1. I have been terminated from work and I will be employeed until end of October.

2. I hold a valid working permit B - (NON EU) until 11.03.2021 and it is my understanding that I will be asked to leave whithin the next 30 days after end of my employment.

3. From what I heard I am not entitle to apply for RAV benefits, is this true?

4. I also heard that I can possibly collect the benefits in another country?

5. is there any RAV hotline in english where I can find offical information?

thanks for your help in advance.
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Old 02.09.2020, 16:03
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Re: RAV / Interim Earnings/ Einzelfirma

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Hi All, I need some guidance about my options.

1. I have been terminated from work and I will be employeed until end of October.


** RAV/ ALK normally looks back three months for job search activities. If you haven't already started, begin applying for jobs as soon as possible at least 10 to 12 per month and document your efforts on the RAV form "Nachweis der persönlichen Arbeitsbemühungen". The jobs can be anywhere in the world.


2. I hold a valid working permit B - (NON EU) until 11.03.2021 and it is my understanding that I will be asked to leave whithin the next 30 days after end of my employment.


** You are likely able to draw unemployment compensation until at least 11.03.2021. Although there is no requirement to do so, the migration office may extend a non-EU residence permit until the end of the unemployment compensation period.



3. From what I heard I am not entitle to apply for RAV benefits, is this true?


** Country of origin does not normally impact the ability to draw unemployment compensation. You can learn more about your eligibility by reviewing this information (English):


https://www.arbeit.swiss/secoalv/en/...edien/faq.html


4. I also heard that I can possibly collect the benefits in another country?


** It can be possible for EU/EFTA citizens to export Swiss unemployment benefits to another EU/EFTA country after 30 days. There is a brochure "Leistungen bei Arbeitssuche im Ausland", also available in F and I, that describes this at:


https://www.arbeit.swiss/secoalv/en/...oschueren.html



5. is there any RAV hotline in english where I can find offical information?


** There is a lot of information on EF and on the internet in English on RAV. A place to start is the RAV eLearning "Compulsory information for jobseekers" at this link (English):


https://ag-elearning.ch/



thanks for your help in advance.

Responses marked ** above.

Last edited by Mullhollander; 02.09.2020 at 16:20.
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Old 03.09.2020, 19:20
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Re: RAV / Interim Earnings/ Einzelfirma

Thank you very much for the info.
I will look into it with much detail.
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