Quick Summary
- Supplementary benefits have an asset allowance which the recipient may freely dispose of. A gift is unproblematic as long as the total assets after the gift are below this amount. If a gift exceeds the EL tax-free amount, you can expect reductions or even a discontinuation of the EL.
- As social welfare is regulated at cantonal or, in some cases, communal level, it is not possible to say in general terms what impact gifts have on social welfare recipients. In some cantons and municipalities, however, there is an asset allowance. If this amount is not exceeded by the gift, no negative impact on the entitlement is to be expected. What happens if this limit is exceeded must be clarified with the responsible social welfare office.
The main characteristic of gifts pursuant to Art. 239 et seq. of the Swiss Code of Obligations (CO) is that the party receiving the gift does not have to provide any consideration. This means that the party receiving the gift generally only receives benefits. However, the situation can be quite different if the party receiving the gift receives social assistance or supplementary benefits (EL) in addition to an IV or AHV pension. As these two benefits are generally intended to cover the living costs of the person concerned, a large inflow of assets can have undesirable consequences.
Social assistance and its relationship to gifts
Social welfare is regulated at federal and cantonal level. The federal government only has powers in some areas, such as asylum social assistance. The cantons, on the other hand, are responsible for organizing and providing general social assistance. All cantons have therefore enacted their own social welfare legislation. As these laws differ greatly in some cases, it is not possible to make a general statement here as to when donations can have an impact on social welfare.
Despite the many different social welfare regulations in Switzerland, some general similarities can be identified between the various cantons. The so-called guidelines of the Swiss Conference for Social Assistance (SKOS) state that the cantons can exempt social welfare recipients from a so-called asset allowance. Specifically, it is recommended that social welfare recipients may have a maximum of the following amounts of assets:
This regulation of asset allowances is implemented similarly, if not identically, in Bern, Zurich and Solothurn, for example.
Example based on the social welfare regulations of the City of Bern (as of May 2025):
Marcel is a 25-year-old young man who is dependent on social welfare. He has a monthly need of CHF 3,000.00. His total assets currently amount to CHF 500.00 . If Marcel receives a one-off gift with a value of CHF 400.00, his total assets will be CHF 900.00. It is therefore still below the tax-free amount of CHF 4,000.00 applicable in the Canton of Berne. The gift therefore has no effect.
However, if Marcel were to receive a gift of CHF 4000.00, this would exceed his monthly need of CHF 3000.00. It would also exceed the asset allowance, as he would now have assets of CHF 4500.00. In this case, he would not receive any social assistance in the following month, as his needs of CHF 3000.00 are already covered. The remaining amount of CHF 1500.00 would be deducted from his asset allowance .
The effect of gifts on supplementary benefits
Anyone who cannot cover their living costs with their AHV or IV pension and their existing assets is entitled to supplementary benefits. As with social assistance, this is subject to the condition that the total assets of the person in need of support are below a certain allowance:
If the gift increases the assets of the person concerned to such an extent that they now exceed the tax-free amount, supplementary benefits may be reduced or even discontinued, depending on the individual case. This is particularly likely if the gift has a very high material value. Caution is also advised if the assets of the person concerned were already very slightly below the tax-free amount before the gift. However, due to the significantly higher tax-free amounts, it is much less likely that a gift could have a significant impact on supplementary benefits in individual cases.
Example:
Elias is a single man. He has total assets of CHF 55,000.00 . If Elias now receives a gift, it must be worth at least CHF 45,000.00 before a reduction or discontinuation of the supplementary benefits can be expected. In conclusion, it can be said that a gift may have an impact on recipients of social assistance or supplementary benefits. Due to the sometimes very different legal bases, it is advisable to seek advice from the competent authority or social welfare office in individual cases.