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EXPLAINED: How Switzerland wants to cut social assistance for non-Europeans

The Swiss government has unveiled a proposal which would cut social assistance for non-European residents. Here’s what you need to know.

Published: 13 May 2022 17:09 CEST
Updated: 16 May 2022 13:13 CEST
A Swiss passport. Photo by Claudio Schwarz | @purzlbaum on Unsplash

As part of a draft revision of the law on foreigners and integration, the Federal Council is proposing to reduce social assistance paid to nationals of third countries.

“During the first three years following the granting a residence permit, the rate of social assistance should be lower than that applied to the native population”, authorities said.

The rationale of the plan is to “create incentives for better work integration”. 

The proposal has been developed by Justice Minister Karin Keller-Sutter. 

The project was in a consultation phase until May 3rd, after which it will be presented to Swiss parliament.

The cut would save an estimated three million francs per year nationwide. 

What does the proposal say? 

Under the plan, the amount of social assistance will be reduced in the first three years for foreigners in Switzerland, provided they come from outside the EU. 

The social aid paid to non-Europeans is already relatively low, with amounts varying from CHF600 to CHF1,000 depending on the canton. 

READ MORE: How Switzerland wants to cut welfare and boost integration for non-EU citizens

Anyone who has a ‘C’ category residency permit and who receives social assistance will lose it more easily than under the previous scheme. 

The law will also see a more defined set of requirements for integration for temporarily admitted persons. 

In addition, the Federal Statistical Office should regularly report accurate figures of how many foreigners are receiving social assistance. 

In addition, the State Secretariat for Migration (SEM) must approve the extension of residency permits of individuals who incur “significant” social welfare costs. 

Keller-Sutter will also draw up a uniform set of recommendations for social assistance for foreigners for the cantons. 

What are people saying? 

While the proposal has not yet been finalised, the idea has sparked heavy criticism, while some foreigners are fearful of what it might mean for them should the assistance be lowered. 

A spokesperson for the Social Democrats told Swiss tabloid Blick a cut would be “unworldly and cynical”, while the Greens say such a move would be unconstitutional. 

The proposal sparked criticism from the Swiss Workers’ Welfare Organisation, whose spokesperson, Caroline Morel, pointed out that “in social assistance, the amount of support benefits is calculated according to needs and not the length of stay in Switzerland”.

“We oppose the downgrading of the residence status of foreigners who receive social assistance. We also oppose lower social assistance rates for the first three years, as these are inhumane and hinder professional and social integration.”

“It is clear that these tightening measures will primarily affect vulnerable people such as children, people with special needs, and women”, she added.

The Swiss People’s Party on the other hand have spoken out in favour of the changes, saying it would help curb increases in social assistance contributions. 

 

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For members

MONEY

Do adult children in Switzerland have to support their parents financially?

Usually, it is the parents’ responsibility to ensure their kids are well taken care of financially. But can Swiss authorities force the children to return the favour in times of need?

Published: 30 April 2024 15:31 CEST
Do adult children in Switzerland have to support their parents financially?

In most cases, once children are grown up and out of the house, they are (or at least should be) self-sufficient in terms of finances.

Parents too should breathe a sigh of relief that they are no longer obligated to pay for their children’s expenses, except perhaps for giving them some money here and there as a gift.

This is what happens in the best-case scenario.

But what if things don’t go according to this plan — for instance, if the parents find themselves in financial straits and can’t  afford to pay their bills?

Family obligations

Generally speaking, the truly needy people who don’t have enough income to pay for their basic living expenses will receive financial help from the government, in the very least in the form of the health insurance and housing subsidy.

READ ALSO: Can I get financial help in Switzerland if I’m struggling to pay the bills?

However, before doling out public money, authorities will see whether relatives should be made to help the struggling individuals pay their bills.

(In this context, ‘relatives’ means only those in the direct line of descent: grandparents, parents, and children.)

They will do it by checking the tax status of these relatives — how much they earn and what other financial assets they have — to determine whether, and how much, they should be paying toward their parents’ expenses.

Obviously, you will be expected to pay up only if your own financial situation allows it; you will not be forced to part with your money if you have very little of it yourself.

 ‘Favourable financial circumstaces’

Based on a Federal Court ruling, if the adult child  lives in ‘favourable financial circumstances’ they are required to help out their struggling parents.

The Court defined ‘favourable financial circumstances’ as income and assets allowing a comfortable life.

‘Comfortable life’, in turn, was defined by the Swiss Conference for Social Welfare (SKOS), as a taxable annual income of 120,000 francs for a single person, and 180,000 francs for married couples.

“If you have minors in your household, the limit is increased by 20,000 francs per child,” according to AXA insurance.

It goes on to say that you can deduct an exempt amount from your taxable assets.

“Your annual depletion of assets is deducted from the remaining amount. This means that if you are obligated to provide financial support, you are permitted to use part of your assets yourself each year; you don’t have to devote your entire assets to providing support.”

At between 18 and 30 years of age, this is 1/60th per year; from 31 to 40, 1/50th per year; 41 to 50, 1/40th per year; 51 to 60, 1/30th per year; and from the age of 61,1/20th per year. 

Are there any exemptions to these rules?

Aside from not having sufficient funds, you could be exempted from paying if, say, your parents, or parent, have not lived up to their own financial obligations toward you.

In Switzerland, parents are required to  provide financially for their children until the age of majority, and even beyond that if they are still studying or undergoing vocational training — typically, until the mid-20s.

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