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Family Allowances Switzerland 2026

March 1, 2026

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5 min

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checkeverything.ch Team

Family allowances burden sharing 2026: Changes in employer contributions, FAK system, and transition until 2029. What families and SMEs need to know.

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Family Allowances: What Changes in 2026?

The family allowances system in Switzerland is being gradually reformed. From 2026, important changes to the burden sharing will come into effect, to be fully implemented by 2029. This reform primarily affects employers, but indirectly also families.

Current Child Allowances (2026)

Allowance Type	Minimum (Federal)	Maximum (by Canton)
Child allowance	CHF 200/month	Up to CHF 311/month
Education allowance	CHF 250/month	Up to CHF 415/month
Mountain region supplement	+CHF 20/month	Varies by canton

Understanding the FAK System

What Are Family Compensation Funds (FAK)?

Employers are obliged to join a Family Compensation Fund (FAK). These funds:

Function	Description
Collect contributions	Employers pay % of payroll
Pay allowances	Via payslip to employees
Burden sharing	Between funds with many/few children

Contribution Rates by Canton (2026)

Canton	Contribution Rate (approx.)	Child Allowance
Geneva	2.30%	CHF 311
Vaud	2.80%	CHF 300
Zurich	1.20%	CHF 200
Bern	1.60%	CHF 230
Ticino	1.50%	CHF 200
Basel-Stadt	1.40%	CHF 200

The Reform: Burden Sharing 2026–2029

What Changes?

The intercantonal burden sharing is being reformed to balance inequalities between cantons:

Phase	Period	Measure
Phase 1	2026	New calculation bases
Phase 2	2027	Gradual adjustment of contributions
Phase 3	2028	Further alignment
Complete	2029	New system fully in force

Goals of the Reform

Goal	Implementation
Fairer distribution	Relieve cantons with many children
Competitive neutrality	Don't disadvantage employers
Transparency	More uniform calculation
Stability	Long-term secure financing

What Does This Mean for Families?

Direct Effects

Area	Effect
Allowance amount	No cuts planned
Payment	Still via employer
Entitlement	Unchanged (per child)
Registration	Still with employer

Who is Entitled to Family Allowances?

Status	Entitlement	Special Conditions
Employees	Yes	From CHF 612/month income
Self-employed	Yes	AHV-liable income
Non-employed	Partial	Income-dependent (max. CHF 44,380)
Unemployed	Yes	Via ALV, min. CHF 200

What Does This Mean for Employers/SMEs?

Effects on Companies

Area	Possible Change	Timeframe
Contribution rates	May increase or decrease	2026–2029
Administration	New reporting requirements possible	From 2026
FAK choice	Switching may be worthwhile	Possible annually
Payroll	Software updates needed	Gradual

Tips for SMEs

Action	Why?
Compare FAK contributions	Differences up to 0.5% of payroll
Check switching options	Usually possible at year-end
Update payroll software	Integrate new rates automatically
Stay informed	FAK informs about changes

Making the Most of Family Allowances

Checklist for Families

Check Point	Action
Registration complete?	Submit form to employer
Both parents employed?	Check who gets higher allowance
Education allowance from 16?	Submit education proof annually
Changed canton?	Allowances may change
Child abroad?	Check entitlement (EU/EFTA yes, others maybe)

Optimise Family Finances

Beyond child allowances, there are more savings opportunities: health insurance, Pillar 3a, and more.

View comparisons →

FAQ

When are child allowances paid?

Child allowances are paid monthly with salary. The employer adds them to the payslip.

How much is the child allowance in 2026?

The legal minimum is CHF 200 per child per month. Depending on canton and FAK, it can be up to CHF 311 (Geneva).

What is the difference between child allowance and education allowance?

Child allowances are for children up to 16 years. Education allowances (min. CHF 250/month) are for children in education from 16 to max. 25 years.

Do I have to pay tax on family allowances?

Yes, family allowances are taxable income and must be declared in the tax return.

What changes with the new burden sharing for me as an employee?

For employees, nothing changes directly. The reform affects financing between the funds. Your allowances remain the same.

Conclusion

The burden sharing reform 2026–2029 primarily affects employers and FAK, not families directly:

For families: Allowances remain at least the same
For employers: Contribution rates may change
Transition phase: Gradual implementation until 2029

Tip: Check whether you're receiving all the allowances you're entitled to – many families miss out due to incomplete registrations.

Legal Notice: The information in this article is for informational purposes only and does not constitute legal advice. Exact allowances vary by canton and FAK. Binding information is available from your family compensation fund or employer.