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BENEFITS

Swiss government moves to restrict social benefits to some foreign nationals

Switzerland's government has announced a new six-step measure that could see foreign citizens from countries outside the European Union having their welfare payments restricted.

Swiss government moves to restrict social benefits to some foreign nationals
Photo: Depositphotos

The Swiss government has decided to immediately implement three new measures aimed at restricting access to welfare for non-European nationals, and develop three further steps over the next 13 months.

The immediate steps, which do not require legislation changes, include a regular analysis of benefits paid to third-country citizens by the Federal Statistical Office; approval by the State Secretariat for Migration for extensions of residence permits for non-EU nationals who incur substantial welfare costs; and the federal government working closely with cantons to coordinate social aid.

The remaining measures cover the integration conditions required for a residence permit for foreigners admitted provisionally in cases of hardship; simplification of the revocation process of the establishment permit in the event of over-dependence on social assistance; as well as the restriction of benefits granted to holders of a permit during their first three years in Switzerland.

The move follows a decision taken in June 2017 by the Council of States to look into legal measures the Swiss government could take to restrict or even block access to welfare benefits for third country nationals.

In June 2019 the council approved a report that instructed the Federal Department of Justice and Police (FDJP) to look into appropriate measures. On January 15th 2020 the Swiss government decided to push ahead with the six measures.

The highest percentage of foreign citizens in Switzerland who receive social aid are from the so called ‘third’ nations — countries, which don’t belong to either the EU or EFTA (Norway and Iceland).

While citizens from these countries constitute only about 7 percent of the Swiss population, a disproportionally large number receive welfare payments. 

Official figures show that 30 percent of immigrants from Africa are on social aid, and 12 percent of people from Asia and South America also receive public assistance.

By comparison, only 2 percent of Swiss citizens and 3 percent of EU nationals get benefits.

In November 2018, Swiss voters approved a controversial measure allowing the so-called ‘social detectives’ to spy on recipients of benefits who had been suspected of abusing the system. 

READ MORE: Foreigners one step closer to voting rights in Zurich – but there's a catch

 

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TAXES

How Germany plans to increase child benefits and provide tax relief

Germany's governing coalition has agreed to increase child benefits (Kindergeld) and offer tax relief. Here's what you need to know.

How Germany plans to increase child benefits and provide tax relief
Photo: DPA

The cabinet of the coalition government, made up of Angela Merkel's Christian Democrats and the centre-left Social Democrats (SPD) agreed Wednesday to increase child benefit – or Kindergeld – by €15 per month next year.

The move is part of the Family Relief Act (Familienentlastungsgesetz), which aims to take the financial burden off middle and lower class families. It's part of an overall package which is setting the federal government back €9.8 billion over 2019 and 2020.

The child benefit is to rise to €219 per month on January 1st 2021 for the first and second child, to €225 per month for the third child, and to €250 from the fourth child onwards.

According to the bill, families will also receive tax relief. for example, the tax-free child allowance (Kinderfreibetrag) is to be raised by more than €500 to €8,388.

In total, families would be relieved of around €12 billion per year, said Finance Minister Olaf Scholz of the centre-left Social Democrats (SPD).

“This is good news for all families and children in Germany,” he said.

READ ALSO: Kindergeld – what you need to know about Germany's child support payments

 

Families are also set to benefit from a cash boost due to the coronavirus pandemic.

The planned Kinderbonus of €300 per child is to be transferred in two instalments of €150 each in September this year, and October. It will be paid to parents alongside Kindergeld.

Explained: How does Germany's Kinderbonus coronavirus payment work?

Boost for taxpayers

Meanwhile, all taxpayers in Germany are to receive a boost. The basic tax-free allowance will be increased from €9,408 to €9,696 from next year.

Meanwhile, the limit, from which the highest tax rate of 42 percent must be paid, will rise from €57,052 to an annual income of €57,919. A further increase of the income limits is planned for 2022.

However, all changes agreed by the cabinet must still be approved by the Bundestag and Bundesrat before they can come into force.

READ ALSO: Here's how Germany plans to reform 'Elterngeld' for new parents

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