According to Article 10 of the Family Allowances Ordinance, employees are entitled to receive family allowances even during periods of absence due to illness. These allowances continue to be paid for the current month and the subsequent three months, even if the statutory entitlement to salary has expired and only insurance benefits are being provided.
What happens after the three-month extension period?
Once the entitlement to family allowances expires, it is essential to consider whether the other parent may be eligible to claim this allowance. If the other parent is not employed, the parent with whom the child resides can register as a non-employed individual to receive the benefit. When both parents live together, they are free to decide who will receive the allowance. In any case, an individual assessment is advisable, and consultation with the relevant compensation office is recommended.
Important to Note: Family allowances may continue to be paid after the three-month period if the employee’s monthly earnings exceed CHF 612. This is particularly relevant in cases where employees are only partially incapacitated for work or where the employer supplements the insurance benefit up to 100% of the regular salary, thus reaching the CHF 612 threshold.
Diligent management for the benefit of employees
The timely and accurate handling of family allowances is not only a legal requirement but also a sign of appreciation towards employees. Especially in cases of illness, employees need to be able to rely on their financial support.
For payroll administration, this means keeping a precise eye on all legal entitlements to safeguard employees’ rights and provide them with the best possible support in difficult times.
