Supplementary benefits to the AVS: eligibility, calculation and how to apply

Supplementary benefits are a right, not welfare

Supplementary benefits close the gap between your recognised expenses and your income when pensions do not cover basic needs. They are governed by the Federal Act on Supplementary Benefits (ELG/LPC), funded by the Confederation and the cantons, and paid out by the cantons.

They are not social assistance: they are a legal entitlement once the conditions are met. You do not repay them during your lifetime, they are tax-free, and they have two parts: the annual benefit, paid monthly, and the reimbursement of illness and disability costs (deductible, co-payment, dentist, home care and so on).

Who is entitled to supplementary benefits?

You can claim if you are domiciled and habitually resident in Switzerland, receive an AVS or disability (IV) pension (or meet equivalent conditions), and your recognised expenses exceed your countable income. Since the 2021 reform you must also have paid AVS contributions for at least ten years.

Foreign nationals may face waiting periods: as a rule ten years of uninterrupted residence for people from outside the EU/EFTA, five years for recognised refugees and stateless persons. EU/EFTA nationals are in principle treated like Swiss citizens. The supplementary benefits office of your canton decides case by case.

How the benefit is calculated: recognised expenses minus countable income

The formula is simple: recognised expenses minus countable income. If the result is positive, that is your annual benefit. On the expense side, three items dominate: general living needs, rent up to a cap, and the health insurance premium.

General living needs cover food, clothing, energy, communication and leisure. Maximum rents depend on the region (region 1: large cities, region 2: towns, region 3: rural areas) and on household size. For health insurance, the cantonal or regional average premium is counted, but never more than your actual premium.

What counts as income

AVS, pension fund and foreign pensions count in full, as does investment income (interest, imputed rental value). Earned income only partly counts: two thirds of the amount above CHF 1,000 for a single person, CHF 1,500 for a couple.

The key mechanism is the wealth drawdown (Vermögensverzehr): part of your wealth is treated as income every year. For an AVS pensioner living at home it is one tenth of the wealth above an allowance of CHF 30,000 (single) or CHF 50,000 (couple). An owner-occupied home benefits from an additional allowance of CHF 112,500 on the property value.

Good to know: the 13th AVS pension, paid from December 2026, is not counted as income when supplementary benefits are calculated, so recipients keep all of it.

Wealth threshold, giving assets away and repayment by heirs

Since 2021 a wealth threshold applies: above CHF 100,000 for a single person or CHF 200,000 for a couple, plus CHF 50,000 per child, there is no entitlement. An owner-occupied home is not counted towards the threshold.

Assets you have given up are counted as if you still had them. That covers gifts and advances on inheritance, but also excessive spending: since 2021, as a rule, more than 10% of your wealth per year (more than CHF 10,000 a year if your wealth is CHF 100,000 or less) without a valid reason. The amount counted falls by CHF 10,000 each year.

You never repay supplementary benefits during your lifetime. After death, however, the heirs must repay the benefits received over the last ten years from the part of the estate above CHF 40,000. For a couple, the obligation only arises after the second spouse dies.

Worked example: a single pensioner in a town

Mrs M., 72, lives alone in a region 2 municipality. She receives an AVS pension of CHF 1,900 a month and a small pension fund pension of CHF 400 a month. Her rent including service charges is CHF 1,300 a month, and she has CHF 40,000 in savings. We assume an average health insurance premium of CHF 6,000 a year.

Result: Mrs M. is entitled to about CHF 13,670 a year, roughly CHF 1,140 a month. The share covering the health insurance premium is usually paid directly to the insurer. In region 3, rent would only be counted up to CHF 14,520 and the benefit would fall to about CHF 12,590.

How to apply

Supplementary benefits are only paid on application. The competent office is the one in your canton of residence: usually the cantonal compensation office (Ausgleichskasse or SVA); in some cantons, such as Zurich, you apply through your municipality; in Geneva through the SPC. The form is available from these offices or on their websites.

Enclose your pension decisions, lease, health insurance policy, bank statements and latest tax return. If you apply within six months of applying for your AVS pension or of the pension decision, the entitlement normally starts when your pension starts; otherwise from the month you apply. So do not wait. Pro Senectute helps you fill in the application free of charge.

Supplementary benefits in your retirement plan

You can tell early on whether supplementary benefits may become relevant: when your AVS pension, pension fund and savings drawdown do not cover your budget. RetirePlan sets your retirement income against your spending, shows year by year how long your savings last and compares options such as annuity or lump sum, free of charge and with as many scenarios as you like.

If you would like to go through your situation with a specialist, an optional expert analysis is available. The planning tool itself remains completely free.

Frequently asked questions

How much wealth can I have and still receive supplementary benefits?

At most CHF 100,000 as a single person or CHF 200,000 as a couple, plus CHF 50,000 per child. An owner-occupied home is not counted. Below that threshold, one tenth of the wealth above the allowance (CHF 30,000 or 50,000) is counted as income.

How do I calculate my supplementary benefit?

Take your recognised expenses (living needs of CHF 20,670 for a single person, rent up to the regional cap, health insurance premium) and subtract your countable income (pensions, two thirds of earnings above the allowance, wealth drawdown and investment income). The difference is your annual benefit. The cantons' and Pro Senectute's online calculators give a first estimate.

Do supplementary benefits have to be repaid?

Not during your lifetime, provided the information you gave was correct. After death, heirs repay the benefits of the last ten years from the part of the estate above CHF 40,000. For couples, only after the second spouse dies.

Are supplementary benefits taxable?

No. They are exempt from federal, cantonal and municipal income tax. Your AVS pension and pension fund pension, on the other hand, remain taxable.

Where do I apply for supplementary benefits?

At the supplementary benefits office of your canton of residence, usually the cantonal compensation office, in some cantons your municipality, in Geneva the SPC. Pro Senectute and your municipality's AVS branch office help free of charge.

Does the 13th AVS pension reduce supplementary benefits?

No. The 13th AVS pension, first paid in December 2026, is not counted as income in the calculation. Recipients get it on top, without any cut to their supplementary benefits.