Bern strengthens financial support for families and seniors

From 1 January 2025, child and education benefits will increase in Switzerland: child benefits will rise from CHF 200 to CHF 215 per month and education benefits from CHF 250 to CHF 268. This is the first increase since 2009, when the Family Allowances Act (FamZG) was passed. The changes are due to the rise in the national consumer price index (CPI), which has increased by 5 points since the beginning of 2024, which activated an adjustment of the amounts in line with the CPI and AHV pensions.

Automatic increases will occur in cantons where minimum amounts are currently paid: seven cantons (Zurich, Glarus, Solothurn, Basel-Land, Aargau, Thurgau and Ticino) will increase the child allowance and six (Zurich, Glarus, Solothurn, Basel-Land, Aargau and Ticino) will increase the education allowance. However, in cantons where current amounts exceed the new minimum values, there may be no increase at all.

Pensions under chapter OASI-IV

From 2025, pensions for pensioners and recipients of disability benefits (IV) will become slightly higher. The Federal Council has taken into account changes in prices and wages, increasing pensions by 2.9%. The minimum AHV/IV pension will thus increase from CHF 1,225 to CHF 1,260 per month and the maximum from CHF 2,450 to 2,520, subject to a full contribution period. The minimum OASI/DI contribution for the self-employed and those without paid employment will also increase from CHF 514 to CHF 530 per year, while the minimum contribution for voluntary OASI/DI insurance will increase from CHF 980 to CHF 1,010.

The pension adjustment will increase costs by about CHF 1.67 billion: of this, CHF 1.48 billion will go to OASI, with the Confederation covering 20.2% of the costs, or about CHF 300 million. A further 185 million francs will be needed for IV, but at no additional cost to the Confederation, as the federal contribution for IV is independent of insurance costs.

Increased financial support

The decision will also affect the compulsory occupational pension system. The coordination deduction in this system will increase from 25,725 to 26,460 francs and the entry threshold from 22,050 to 22,680 francs. The maximum allowable tax deduction under the linked individual pension scheme (third pillar) will increase from 7,056 to 7,258 francs for participants with a second pillar and from 35,280 to 36,288 francs for those without a second pillar.

Supplementary and transitional allowances will also be increased to cover the basic necessities of life. For single persons, the annual amount will rise to 20,670 francs (instead of the current 20,100 francs) and for married couples to 31,005 francs (up from the current 30,150 francs). The allowance for children over 11 years of age will be 10,815 francs and for children under 11 years of age 7,590 francs. These changes in supplementary and transitional OASI/DI benefits will cost the Confederation approximately 11 million francs and the cantons 6 million francs.

Other upward adjustments

The Federal Council increased the maximum amounts of rent that are taken into account in calculating supplementary and transitional allowances, and increased the lump-sum payments for support costs and heating costs. These measures will cost 35 million francs: 22 million will be financed by the federal government and the remaining 13 million by the cantons. In addition, deductions for income from paid work have been increased, which will cost 11 million francs: 7 million will be covered by the Confederation and 4 million by the cantons.