Child allowances in Switzerland: A guide for (prospective) parents

What do alphabet soup and child allowances in Switzerland have in common? Quite simply, it's the jumble of terms! Whether it's called child benefit, family allowances, or child allowances — or perhaps education and birth allowances — one thing is clear: a significant amount is intended to be added to the wallets of families in the beautiful Swiss Confederation. But who is actually entitled to which subsidy? How much are the child allowances in Switzerland? How and where can I apply for these? This guide will tell you everything you need to know as a (prospective) parent.

First things first: What financial support is available for families in Switzerland?

In Switzerland, a variety of financial subsidies are grouped under the term "family allowances." These allowances are designed to help ease the financial burdens that come with raising and supporting children, making them a vital component of the Swiss social safety net.

Family allowances in Switzerland include:

• Child Allowances: Commonly referred to as child benefits, these are monthly payments made from the birth month of a child until they reach 16 years of age. If a child is unable to work due to health reasons after their 16th birthday, the allowance continues until they are 20 years old. The minimum amount for this subsidy is 200 CHF per month, though this can vary by canton.

• Education Allowances: These monthly payments are for children who are in education and are available from a minimum age of 15. If a child continues in compulsory schooling beyond their 16th birthday, this allowance replaces the child allowance. It continues until the child completes their education, but not beyond their 25th birthday. The minimum amount is 250 CHF per month, although this can be higher depending on the canton.

• Birth and Adoption Allowances: These are one-time payments made upon the birth or adoption of a child. Unlike education and child allowances, these are not mandatory, and it is up to each canton to decide whether to offer them.

Details of the amounts specific to each canton can be found in the section titled "Cantonal differences." By the way: It's important to note that family allowances are considered taxable income, so they must be declared as additional income on your taxes.

Applying for child allowances in Switzerland

When it comes to child allowances in Switzerland, it’s important to know that only one allowance of each type can be issued per child. Overlapping claims are not permitted. Sometimes, multiple people might claim allowances for the same child, leading to what's called a claim conflict. This could occur, for example, if both you and your partner work and are both entitled to family allowances for your child. In such cases, a legally prescribed Order will determine who actually receives the allowance. To ensure transparency and prevent double payments, meticulous records are kept in the Family Allowance Register.

Eligibility for family allowances

Eligibility hinges on the applicant's relationship to the child. Generally, you can apply for family allowances for:

• Biological and adopted children, whether the parents are married or not.

• Stepchildren or children of a registered partner or spouse, if living with the applicant. Note that children of partners who are not formally registered do not qualify.

• Foster children who have been taken into long-term home care. Children in day foster care do not qualify.

• Siblings and grandchildren, if the applicant primarily supports them financially.

Who can apply for family allowances in Switzerland?

The following individuals are eligible to apply:

• Employees: Applicants must earn at least 7,350 CHF in AHV-liable income per year.

• Self-Employed Individuals: In this case, the annual AHV-liable total income must also be at least 7,350 CHF. Additionally, the self-employed person must central compensation office registry.

In both cases, f the total income is below the 7,350 CHF threshold, the individual is considered non-employed.

• Non-employed with low taxable income: These individuals can receive family allowances as long as they are considered non-employed under AHV terms and reside in Switzerland. Their taxable income must not exceed 44,100 CHF (this amount may vary by canton), and they must not be receiving supplementary AHV/IV benefits. If allowances for the same child are already claimed by another person, further claims are not permitted.

• Agricultural Workers: Special regulations apply, including partially increased allowances and additional allowances for households. More detailed information can be found on the official website for agricultural family allowances here..

Note: Unemployed individuals receiving unemployment insurance benefits do not qualify for family allowances. However, they may be eligible for a similar subsidy through their unemployment insurance fund under certain conditions.

How to apply for family allowances in Switzerland

While it would be magical for the first child allowance to arrive stork-delivered through the window, the reality is a bit more prosaic. Child allowances in Switzerland require an application process:

• Employees should apply through their employer.

• Self-Employed Individuals need to contact their family compensation office (typically managed by the AHV compensation office). You can locate your managing office in the central compensation office registry..

• Non-Employed Individuals with an income below 44,100 CHF should apply through their cantonal Compensation office.

Tip: Missed applying for allowances? No worries—you can legally claim them retroactively for up to five years.

Receiving Swiss Family Allowances Abroad

In certain cases, you may be eligible to receive child and education allowances for your children in Switzerland even if you reside abroad. However, Swiss birth and adoption allowances are not available outside Switzerland. You qualify for these allowances abroad if:

• You are a cross-border worker employed in Switzerland.

• You work in Switzerland and are subject to Swiss social insurance, but your children live in an EU or EFTA member state.

• You are temporarily posted abroad by your Swiss employer but still covered by Swiss social insurance.

If your children live abroad and receive local child allowances, you will only be paid the difference, if the Swiss allowance is higher than what you receive abroad. You are entitled to this differential if Swiss law grants you more than what you receive from the foreign country.

Cantonal differences

Federalism significantly influences many aspects of Swiss life, including family allowances. For instance, the structure and amount of child allowances vary from one canton to another, such as between Zurich and Bern. Additionally, while some cantons offer one-time birth or adoption allowances, others do not.

The table provides a snapshot of the current allowances available in various cantons as of January 2024. For more detailed information, you can reach out to your competent compensation office

*The amount of the allowances depends on the canton and can vary based on the child's age or the number of children.
Source: Federal Social Insurance Office (BSV).

Who funds family allowances in Switzerland?

Subsidies and additional financial support always sound appealing, but who actually foots the bill?
In Switzerland, the responsibility for financing family allowances for employees falls on the employers. They contribute to family compensation funds based on the AHV-liable salaries they pay out. However, there's an exception in the canton of Valais, where employees must also contribute to these premiums. Self-employed individuals, meanwhile, pay their own contributions to secure family allowances for their sector. For non-employed individuals, the funding primarily comes from the cantonal governments.

In summary

Navigating the topic of family and child allowances in Switzerland might initially seem like a daunting task. But rest assured, once you understand the system and have your application in place, the process tends to operate smoothly. You can then sit back, relax, and count on consistent and reliable support for your family. And should any questions arise, a wide array of advisory services are available to assist you and your family.