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In line with many countries, Switzerland operates a system of family allowances intended to partially offset the costs that parents incur in supporting their children. They include child and education allowances, as well as birth and adoption allowances introduced by individual cantons.

The notion that the state could and should help families raise and educate their children dates to the early 20th century, but we can find that such assistance began even in the 19th century in some European countries as a way to alleviate childhood poverty. Since their introduction, family allowance payments have undergone various changes and reforms in different countries, including changes to eligibility criteria, the level of payments, and the conditions attached to receiving them. These allowances still represent an essential means of backing up families and ensuring the well-being of children in numerous countries worldwide.

In Switzerland, debates regarding family protection support and allowances started around 1945, yet the implementation of such measures was a long process. Maternity insurance, for example, was not introduced until 2004.

How much is the allowance?

The Federal Law on Family Allowances (FamZG), or LaFAM in French-speaking Switzerland, stipulates the following allowances per child and month to be paid in all cantons:

• A child allowance of at least 200 Swiss francs for children up to 16 years of age or until the entitlement to education allowance arises.  The amount varies by canton, and by the number of children in the household.
• An education allowance of a minimum of 250 Swiss francs for young people who are undergoing post-compulsory education, from the age of 15 at the earliest, up to the age of 25.  The amount varies by canton and each defines what is intended by the education to be supported.
• A birth and adoption allowance is paid to help with costs of children born or adopted in Switzerland.  The sum varies by cantons, some of which do not pay this sum. 

Payment:

Child benefits are paid monthly to the parent or legal guardian by their employer, at the same time as their salary.  Eligible families can claim a supplemental payment at the birth of their 3^rd child and any subsequent children.

Self-employed individuals in Switzerland are required to adhere to the FamZG, entitling them to benefits while also obliging them to contribute financially. These individuals must be affiliated with a family compensation office in the canton where their business is located, and it is this entity that pays the allowance.

Who is eligible?

• Family allowance is paid to parents or legal guardians who reside in Switzerland and have at least one child under the age of 16. Some cantons may have different age limits or additional eligibility criteria
• Employees and self-employed individuals who do not work in agriculture (the latter category of workers benefit from a system governed at federal level).
• Unemployed people or people with a low income are also entitled to the allowance
• Cross-border (frontalier) workers: this category of workers is entitled to family allowances in Switzerland. However, if the frontalier’s spouse works in the border country, e.g. France, and their children reside there, then the country of residence of the cross-border worker, i.e. France, will be responsible for the payment of the family allowances. Swiss allowances will no longer be paid in this case, except as a differential supplement if the Swiss allowance amount is higher than the French allowance

Important to know:

• Funding: Child benefits are funded by the cantons and are not means-tested. All eligible families receive the same amount regardless of their income level.
• Tax implications: benefit payments count towards an individual’s taxable income and need to be declared as such.
• Application process: To receive family allowance benefits, parents or legal guardians must apply through their employer or appropriate cantonal office. The application process requires proof of residency, income, and family composition.
• Freelancers and consultants: if you are working through a salary portal company such as The Business Harbour, you will be able to request and receive family allowances in the same way as a full-time employee.  The salary portal handles the administration for you and pays the benefit amount with your salary.
• Whilst subject to different claiming and eligibility criteria, Switzerland’s cantons offer additional financial aid programs for education, such as grants and scholarships and financial support to companies that hire apprentices, which in turn helps applicants become skilled workers.

Want to know more?

the Federal Social Insurance Office FSIO, OFAS is in charge of all social welfare policies in Switzerland :

https://www.bsv.admin.ch/bsv/en/home.html

The AVS website covers all aspects of the allowance, with comparisons between cantons and case examples to help understand what you may be able to claim and in which circumstances. :

https://www.ahv-iv.ch/en/Social-insurances/Family-allowance-FZ

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Author: Antonina Marenco