Switzerland Enforces Facial Covering Ban, Raises Pensions in New Year

Switzerland is implementing a series of significant changes starting January 1, 2025, which impact various sectors including legal, economic, and social frameworks. These include a ban on facial coverings, reforms to inheritance laws, increased pensions, and measures to strengthen bank solvency and liquidity. The changes reflect a growing alignment with European norms and a response to past financial crises. Here is a detailed overview of these changes.

Key Changes

1. Swiss Burqa Ban

  • A ban on facial coverings in public places takes effect from January 1, 2025.
  • The ban applies to burqas, niqabs, and other face coverings, with violations punishable by a fine of up to CHF 1,000 ($1,143).

Exceptions to the law include

  • Face coverings for security, weather, or health reasons.
  • Allowed in artistic performances, entertainment, and advertising.
  • Switzerland joins France, Austria, and other European countries in implementing similar restrictions.

2. Inheritance Law Reforms

  • Switzerland has revised its international inheritance law to better align with the European Succession Regulation.
  • The reform aims to resolve frequent jurisdictional conflicts between Switzerland and EU/EFTA countries, particularly affecting the Swiss expatriates.

Benefits

  • Legal certainty for Swiss nationals abroad and their relatives.
  • Easier inheritance planning.
  • The reforms are welcomed by the Organization of the Swiss Abroad (OSA), as around 61% of Swiss nationals abroad live in EU or EFTA member states.

3. Increase in State Pensions and Benefits

  • Swiss state pensions will rise by 2.9% to keep pace with price increases and salary trends.

Adjustments Includes

  • Minimum pension: CHF 1,225 to CHF 1,260 ($1,382 to $1,422).
  • Maximum pension: CHF 2,450 to CHF 2,520 ($2,764 to $2,843).
  • These changes also affect contributions, supplementary benefits, and occupational benefits.
  • Pensions will be reviewed every two years based on cost-of-living changes.

4. Strengthening Bank Solvency and Liquidity

  • Following the 2007-2009 financial crisis and the subsequent banking crises, Switzerland is implementing measures to improve bank solvency and liquidity.

Key Measures

  • Banks must build capital reserves during stable economic periods, which can be accessed during financial stress.
  • This is the final stage of reforms introduced after the collapses of UBS (2018) and Credit Suisse (2023).
  • The measures aim to prevent taxpayer bailouts and ensure the stability of Swiss banks during crises.
Summary/Static Details
Why in the news? Switzerland Enforces Facial Covering Ban, Raises Pensions in New Year
Facial Coverings Ban Effective January 1, 2025; fine of CHF 1,000 for violations; exceptions include health, weather, and artistic reasons.
Inheritance Law Reforms Aligns with EU Succession Regulation; benefits Swiss expatriates and resolves jurisdictional conflicts.
State Pensions Increase by 2.9%: Minimum pension from CHF 1,225 to CHF 1,260; maximum pension from CHF 2,450 to CHF 2,520.
Banking Reforms Final stage of reforms after financial crises; banks required to build capital reserves to withstand future stress.
Impact of Changes Aims to provide legal certainty, economic stability, and financial independence in the face of past crises.
Shivam

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