Do I pay family allowances if an employee works part-time (60% Pensum)?

Yes. Family allowances are not reduced based on Pensum. A part-time employee with children receives the same monthly allowance as a full-time employee. The allowance is tied to the child, not to hours worked.

What if an employee has children from a previous relationship but the other parent claims the allowance?

Only one employer per child can pay the allowance. In most cantons, the employee with custody or the primary caregiver's employer pays. Ask the employee to declare who else may claim it; the canton's fund will coordinate to avoid double-payment. If both employers claim, the fund investigates.

Are family allowances taxable income?

It depends on the canton. Some cantons exclude them entirely from income tax; others tax them partially or fully. Check your canton's tax office guidance. Family allowances are never subject to social insurance contributions (AHV, IV, ALV, BVG).

Family Allowances (Familienzulagen)

Family allowances (Familienzulagen) are mandatory monthly cash payments employers must make to employees with dependent children. The amount depends on canton, age of child, and sometimes employer size. Most cantons set a base rate around CHF 200–300 per month for children under 16, with supplementary allowances for older children or apprentices.

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Family allowances exist because Swiss law requires employers to support employees with child-rearing costs. Every canton runs its own system with different rates and rules. You cannot opt out—this is a legal minimum, not a benefit you can choose to offer.

When family allowances matter

Family allowances arise when you hire someone with dependent children, or when an existing employee becomes a parent. You must register with your cantonal family allowance fund (often called the cantonal compensation office) before you start paying out. Most cantons process registrations within weeks.

Payments are monthly, added to gross salary. They are not subject to social insurance contributions (AHV, IV, ALV, BVG), but they may be subject to income tax depending on the canton. Verify your canton's rules—some exclude them, others tax them partially.

Family allowances apply to all employees, regardless of Pensum percentage
Rates vary significantly by canton (e.g., Zurich vs. Valais have different schedules)
Children qualify until age 16, or until end of apprenticeship (max age 25)
You pay the allowance even if the employee is on parental leave or reduced hours
Non-Swiss citizens with valid work permits are eligible in most cantons
Register with your canton's compensation fund as soon as you hire an employee with children

Your employer obligations

You must register your business and every employee with the cantonal family allowance fund. When an employee declares a child, you add the allowance to their monthly pay without delay. Keep records of all declarations and payments for at least 5 years.

The canton issues official notification of the allowance amount once you register. You are not responsible for calculating rates—the fund tells you the exact CHF amount per child per month. Pay it on schedule or you risk late-payment interest and administrative penalties.

Register before hiring or within weeks of hiring an employee with dependents
Request child declarations (Anmeldungsformular) when onboarding or annually
Pay the correct monthly amount; the canton publishes updated rates each year
Report changes (new child, child turns 16, apprenticeship ends) immediately
Keep copies of all child declarations and payment records
Never deduct family allowances from salary or use them to offset other costs

Most common mistakes

The single biggest error: forgetting to register with the cantonal fund entirely, then scrambling to backpay months of arrears. Register early, even before the first child is declared.

Second mistake: using outdated rate tables. Cantons update family allowance amounts annually, often in January. If you pay CHF 250 when the new rate is CHF 280, you have underpaid and must catch up. Subscribe to your canton's notifications or check the compensation office website each year.

Do not confuse family allowances with income tax deductions—they are separate
Do not use allowances as a hiring incentive to offer employees 'extra' beyond statutory rates
Do not assume a spouse's employer is paying the allowance; verify eligibility rules in your canton
Do not delay registration; backpay obligations are expensive
Do not mix family allowance funds if you operate in multiple cantons—register in each one
If unsure, contact your canton's compensation office or a payroll specialist before your first payment

Frequently asked questions

Do I pay family allowances if an employee works part-time (60% Pensum)?: Yes. Family allowances are not reduced based on Pensum. A part-time employee with children receives the same monthly allowance as a full-time employee. The allowance is tied to the child, not to hours worked.
What if an employee has children from a previous relationship but the other parent claims the allowance?: Only one employer per child can pay the allowance. In most cantons, the employee with custody or the primary caregiver's employer pays. Ask the employee to declare who else may claim it; the canton's fund will coordinate to avoid double-payment. If both employers claim, the fund investigates.
Are family allowances taxable income?: It depends on the canton. Some cantons exclude them entirely from income tax; others tax them partially or fully. Check your canton's tax office guidance. Family allowances are never subject to social insurance contributions (AHV, IV, ALV, BVG).

General information for Swiss employers, not legal advice. Have a lawyer confirm anything with legal consequences.