Supplementary Benefits (SB) OASI/DI in Switzerland
Supplementary benefits (SB) are social allowances paid to recipients of an OASI or DI pension whose income does not cover their basic needs. Governed by the Federal Act on Supplementary Benefits to OASI and DI (SBA), which entered into force in 1966 and was revised in 2021, SB constitute an essential pillar in the fight against poverty among elderly and disabled persons in Switzerland. PBM Avocats advises you in Geneva and Lausanne on your rights to SB.
Conditions for Granting Supplementary Benefits
To be entitled to SB, the following cumulative conditions must be met:
- Receipt of an OASI or DI pension: old-age, invalidity or survivors' pension
- Domicile and residence in Switzerland: effective presence on the territory
- Insufficient income: recognised income must be lower than recognised expenses
- Limited assets: net assets must not exceed the statutory thresholds
Calculation of Supplementary Benefits
Annual SB correspond to the difference between recognised expenses and recognised income:
| Recognised Expenses (2024) | Annual Amount |
|---|---|
| Subsistence flat-rate allowance (single person) | CHF 20,100 |
| Subsistence flat-rate allowance (couple) | CHF 30,150 |
| Gross rent (single person, outside major cities) | Up to CHF 17,580 |
| Health insurance premiums | Cantonal average FHIA premium |
| Care costs (in institution) | According to cantonal rates |
| Recognised Income | Treatment |
|---|---|
| OASI / DI pension | In full |
| OPA pension (2nd pillar) | In full |
| Earned income | 2/3 of net income (min. allowance CHF 1,500) |
| Net movable assets | 1/10 above an allowance of CHF 30,000 (single) |
| Rental value of accommodation | In full if owner |
Federal SB and Cantonal SB
SB comprise two components:
- Federal SB: calculated under the SBA, identical throughout Switzerland
- Cantonal SB: paid in addition by certain cantons (including Geneva and Vaud) to supplement federal SB. Geneva in particular pays additional cantonal benefits under the cantonal minimum welfare income (RMCAS)
The 2021 SBA Reform: Relinquishment of Assets
The revision of the SBA that entered into force on 1 January 2021 introduced stricter rules on relinquishment of assets. If a recipient has renounced elements of their assets in the 10 years preceding the SB application (gifts, sales below market value), these amounts are taken into account fictitiously in the calculation of income. This rule aims to prevent persons from depleting their assets to access SB.
Reimbursement of SB to Heirs
Since 2021, SB paid in the 10 years preceding the beneficiary's death must be reimbursed by the heirs to the extent that the succession exceeds CHF 40,000 (allowance). This rule impacts succession planning for the families concerned.
Application Procedure and Appeals
- The SB application is addressed to the cantonal SB office of the canton of domicile (OCAS in Geneva, Service des prestations complémentaires in Vaud)
- In the event of refusal or contested calculation, an objection within 30 days may be filed
- If the objection is rejected, an appeal before the cantonal insurance tribunal is possible
- The procedure is in principle free of charge
Who is entitled to supplementary benefits in Switzerland?
Persons who receive an OASI or DI pension (full or partial) and whose recognised income does not cover their recognised expenses are entitled to supplementary benefits (SB). Cross-border workers and foreigners domiciled in Switzerland may also be entitled depending on the statutory conditions.
How are supplementary benefits calculated?
SB are calculated as the difference between recognised expenses and recognised income. Income taken into account includes OASI/DI pensions, earned income, assets (with an allowance) and maintenance payments. Recognised expenses include a flat-rate subsistence allowance, rent (up to a cantonal ceiling) and health insurance premiums.
Are supplementary benefits subject to tax?
No, supplementary benefits are exempt from income tax, both at the federal and cantonal level. They are also not subject to social contributions. However, they must be declared in the tax return for information purposes.
What happens if my assets exceed the permitted threshold?
If your net assets exceed a certain limit (CHF 100,000 for sole OASI/DI pension recipients, CHF 37,500 for invalids in an institution), a portion of those assets is taken into account as income. Not all of the assets are taken into account: there are allowances depending on the insured's status. In the event of a relinquishment of assets, SB may be reduced.
Can SB and earned income be combined?
Yes, under certain conditions. For recipients of a partial DI pension, earned income may be generated. An allowance on earned income applies (generally 2/3 of income, minimum CHF 1,500). SB are then calculated on the remaining net income. It is important to declare any income to the SB office to avoid subsequent refunds.