Switzerland's Sipac 2.0: A failed digital test

Switzerland implemented Sipac 2.0, the new unemployment insurance payment system, in early 2026. The transition was complex, marked by leadership changes and launch postponements. However, the system was deployed prematurely, leading to significant delays in payments for some beneficiaries. While payments are now largely back on track and unemployment offices are catching up, according to the State Secretariat for Economic Affairs (Seco), staff express concerns.

Employees working with Sipac 2.0 report that the system's core structure does not deliver the promised automation and simplification. They argue it has not improved their daily work or productivity, raising questions about potential consequences for those receiving unemployment benefits. Numerous modifications have been made since the launch, focusing on streamlining processes and interfaces.

However, Seco is not a startup that can afford extensive testing and adjustments. Previous audits had identified difficulties with the new platform, though Seco had stated that all relevant security issues were resolved. The situation with Sipac 2.0 is particularly concerning because it directly affects the income of unemployed individuals.

This case highlights broader issues within the Swiss Confederation's IT and digitization projects. A federal audit report from May noted that major IT projects face the same challenges as a decade ago, with project governance remaining a significant problem. The Sipac case demonstrates that the Confederation is currently failing to set an example in managing such complex transitions.