Family allowances offset part of the cost that parents bear for their children. As an employer you normally pay them out together with salary, and the family compensation fund (FAK) finances them through your contributions. Mistakes happen with the data: from when until when does the allowance run, which type applies, and what happens in the event of illness? This guide to family allowances explains entitlement and settlement under the Federal Act on Family Allowances (FamZG), works through an example and shows where the allowances appear in payroll and on the salary certificate.
Types and minimum rates
The FamZG provides for two allowances in all cantons (Art. 3, para. 1):
- Child allowance: from the start of the month of birth until the end of the month in which the child turns 16. If the child is incapable of gainful employment, until the end of the month in which it turns 20. If entitlement to an education allowance already exists before the 16th birthday, that allowance is paid instead of the child allowance.
- Education allowance: from the start of the month in which the child begins post-compulsory education, at the earliest from the month of the 15th birthday. If the child still attends compulsory school after the 16th birthday, it starts at the beginning of the following month. It runs until the education is completed, at most until the end of the month in which the child turns 25.
The minimum rates are CHF 215 a month for the child allowance and CHF 268 for the education allowance (Art. 5, paras. 1 and 2 FamZG, as at 1 January 2026). The Federal Council adjusts them to inflation (para. 3). The cantons may provide for higher rates and for birth and adoption allowances (Art. 3, para. 2 FamZG); whether a birth allowance exists is therefore decided by the canton (Art. 2 FamZV). The overview of cantonal rates is in leaflet 6.08, as at 1 January 2025; the decision of your FAK is what counts.
Who is entitled
Entitled are employees who are compulsorily insured under the AHV and work for an employer subject to the FamZG (Art. 13, para. 1 FamZG). Entitlement arises and ends with the entitlement to salary. Only full allowances are paid; the condition is that annual AHV contributions are paid on earned income of at least half the minimum full annual AHV pension (Art. 13, para. 3 FamZG). Leaflet 6.08 gives CHF 630 a month or CHF 7’560 a year for this (as at 1 January 2025). According to the leaflet, entitlement is therefore full even for part-time work. If salary is below this, the question is one of entitlement as a non-working person (Art. 19, para. 1bis FamZG). Several salaries are added together (Art. 10b FamZV).
Entitlement exists for the following children (Art. 4 FamZG): own children, stepchildren, foster children, and siblings and grandchildren whose maintenance the entitled person mainly bears. Special rules apply to children abroad.
Several persons entitled
Only one allowance of the same type is paid for the same child (Art. 6 FamZG). If several persons are entitled, this order applies (Art. 7, para. 1 FamZG): the person in gainful employment; the person with parental authority; the person with whom the child mainly lives; the person to whom the family allowances scheme of the child’s canton of residence applies; the person with the higher income subject to AHV from employment, then from self-employment. The person with the second-ranking entitlement receives only a difference, if the minimum rate in their canton is higher (para. 2). Clarify the ranking with the FAK, not in payroll accounting.
Entitlement during illness, leave and after leaving
If the entitlement to salary lapses, the allowances continue (Art. 10 FamZV). Where the employee is prevented from working for the reasons in Art. 324a CO, such as illness or an accident (see sick pay in Switzerland), they are paid in the current month and the three following months, even if the entitlement to salary has expired. The same applies by analogy to unpaid leave and on the death of the person. In the case of maternity leave, entitlement continues for a maximum of 16 weeks, and for the other parent’s leave for a maximum of two weeks. After the interruption, entitlement resumes from the first day of the month in which work is resumed.
Employer duties
Employers subject to AHV contributions must join an FAK of the canton whose scheme applies to them (Art. 11 and 12 FamZG). That is the canton of the registered office; branches are subject to the canton in which they are located (Art. 12, para. 2 FamZG). Joining is also necessary if you employ only staff without children (leaflet 6.08).
According to the Federal Social Insurance Office (FSIO), employers in principle pay the allowances out monthly with salary, inform employees about entitlement, provide the application form and pass it on, completed, to the FAK. If they learn of changed circumstances, they report them to the FAK without delay. Employers finance the allowances through their contributions to the FAK. These are calculated as a percentage of income subject to AHV and regulated by the cantons (Art. 16, para. 2 FamZG). The contribution rate differs by canton and fund; in Valais employees must also contribute (leaflet 6.08). Allowances received unduly must be repaid; subsequent claims are limited to five years (leaflet 6.08).
Allowances in payroll, AHV, tax and the salary certificate
Family allowances within the local or sector norm are not part of income from employment for AHV purposes (Art. 6, para. 2 lit. f AHVV). For tax purposes they are part of income: on the salary certificate, birth, child and other family allowances appear under item 1 (guidance notes m.no. 15), and the amount of child allowances included may be stated voluntarily in item 15 (m.no. 63). For persons liable to withholding tax they are likewise subject to withholding tax (Circular No. 45, no. 3.2.1). There, allowance decisions also count as evidence of the number of children (no. 4.7).
Practical example: Sägerei Hofer AG
Sägerei Hofer AG is a fictitious business. Its FAK pays the minimum rates of CHF 215 and CHF 268 (assumed). Reto Keller is permanently employed by the company; his partner does not work. His daughter Mia was born on 14 June 2010 and attends compulsory school until the summer; in August 2026 she starts an apprenticeship. His son Noah was born on 3 March 2018.
- Mia: The child allowance runs until the end of June 2026, the month of her 16th birthday. Because she then still attends compulsory school, the education allowance starts on 1 July 2026 (Art. 3, para. 1 lit. a and b FamZG).
- Noah: child allowance for the whole year.
| Months of 2026 | Mia | Noah | Total per month | Sum |
|---|---|---|---|---|
| January to June (6 months) | 215 child allowance | 215 | 430 | 2’580 |
| July to December (6 months) | 268 education allowance | 215 | 483 | 2’898 |
| Year (subtotal) | 5’478 |
On 15 September 2026 Mr Keller falls ill. Even if his entitlement to salary later expires, entitlement continues in the current month and the three following months, that is up to and including December 2026 (Art. 10, para. 1 FamZV). If he remains ill beyond the turn of the year and the entitlement to salary expires, entitlement ends from January 2027 (Art. 13, para. 1 FamZG and Art. 10 FamZV). On the 2026 salary certificate the CHF 5’478 appear in item 1; the company may voluntarily note in item 15 “Child and education allowances of CHF 5’478 included in gross salary”. No AHV contributions are due on them within the usual scope.
Checklist
- FAK of the canton of the registered office and of each branch joined
- New employees informed about entitlement, application form handed over and passed to the FAK with supporting documents
- FAK decision for each child filed (type of allowance, start, end)
- Start and end of child allowance and education allowance recorded for each child; start of education kept up to date
- Changes (birth, end of education, separation, child moving away, partner changing job) reported to the FAK without delay
- Continued payment checked under Art. 10 FamZV in the event of illness, accident and leave
- Allowances in payroll without AHV deduction, on the salary certificate in item 1
- Minimum income checked for part-time work and several employers
How KMU | base helps
HR | base calculates family allowances in payroll according to the entitlement your FAK has decided: child, education and birth allowances run according to FAK entitlement and are pro-rated for a part month.
1. Fund rates. Under Payroll › Payroll › Settings you enter the family compensation fund’s canton, employer contribution, employee contribution and the child, education and birth allowances. “Apply cantonal defaults” suggests values for 2026; the decision of your fund is what counts.
2. Record children. Under Payroll › Payroll › People you open the person. In the section “Children (family allowances)” you enter first name, date of birth, entitlement from and until, education from and until, the decision of the family compensation fund and, if provided for, the birth allowance in the month of birth. In the example you set “Education from” for Mia to July 2026, the first month of the education allowance; if you entered the start of the apprenticeship in August, July would remain without an allowance.
3. Payroll run. The payroll run posts child allowance (wage type 1100), education allowance (1101) and birth allowance (1102). The allowances are not subject to AHV but remain in the base for withholding tax. You record salary changes in the payroll master data with validity from a given date.
4. Joining. The joining checklist contains the item “Request family allowances (if children)” with the note to send the application with supporting documents to the FAK; by default it falls due seven days after joining.
What you need to know:
- For joining or leaving in the course of a month, the calculation pro-rates the allowance (days out of 30). Whether your FAK provides the full or a pro-rated allowance for a part month depends on its scheme; clarify this with the fund and correct if necessary.
- The calculation has no rule of its own for the child allowance for children incapable of gainful employment between 16 and 20 (Art. 3, para. 1 lit. a FamZG).
- HR | base does not calculate the ranking among several entitled persons or difference payments; you record the start and end of entitlement according to the fund’s decision. The allowance is calculated for every month in which the person is employed, even without an entitlement to salary. Under Art. 10 FamZV it continues without an entitlement to salary only in the month in which the incapacity for work occurs or the unpaid leave begins and in the three following months; if the entitlement to salary lasts longer, it ends with it. In that case enter the end as “Entitled until” on the child.
- The minimum income threshold (Art. 13, para. 3 FamZG) is not checked by the software.
- The standard wage type “Birth allowance” appears on the salary certificate under item 3, while the guidance notes list birth allowances under item 1 (m.no. 15); check the assignment.
If you would like to try it yourself, take a look at the Demo or open a test account. For the joining of new employees, the guide Create an employment contract helps. If you have questions, we will help you via the Contact page.
Sources
- Federal Act on Family Allowances (FamZG, SR 836.2), Art. 2–7, 11–13, 15, 16 and 19, as at 1 January 2026: fedlex.admin.ch (German original), accessed on 27.10.2026.
- Ordinance on Family Allowances (FamZV, SR 836.21), Art. 2, 3, 10 and 10b, as at 1 January 2025: fedlex.admin.ch (German original), accessed on 27.10.2026. Fedlex shows a further version for 1 July 2027.
- Ordinance on Old-Age and Survivors’ Insurance (AHVV, SR 831.101), Art. 6, para. 2 lit. f, as at 1 January 2025: fedlex.admin.ch (German original), accessed on 27.10.2026.
- FSIO, family allowances, organisation: bsv.admin.ch (in German), accessed on 27.10.2026.
- AHV/IV Information Centre, leaflet 6.08 Family allowances, as at 1 January 2025 (December 2024 edition; overview, not binding): ahv-iv.ch (in German), accessed on 27.10.2026.
- SSK and FTA, guidance notes on completing the salary certificate (Form 11), valid from 1 January 2026, m.no. 15 and 63: estv.admin.ch (in German), accessed on 27.10.2026.
- FTA, Circular No. 45, Withholding tax on employment income of employees, of 12 June 2019, no. 3.2.1 and 4.7: estv.admin.ch (in German), accessed on 27.10.2026.
This guide does not replace legal or tax advice. Information as at 27.10.2026.