Organisation
Various actors are involved in the family allowances scheme.
The Confederation
Through the Federal Family Allowances Act (LAFam), the Confederation provides the cantons with the general framework for their family allowances schemes while also giving them the latitude to more generous family allowances or not. The Confederation therefore handles matters of substantive law, such as issues relative to the terms and conditions for granting family allowances (start and end of entitlement, age limits, concurring claims, exportability of family allowances, coordination with other social security benefits, etc.). It also acts in a supervisory capacity by issuing guidelines to ensure the uniform application of the law by the family allowances compensation funds (CAF) which implement the law.
The cantons
The cantons enact their own regulations on family allowances but must comply with the requirements set by the Confederation. The cantons have the option of providing allowances that are higher than the statutory minimum stipulated by federal law. They may also provide childbirth and adoption allowances, and additional benefits (e.g. a supplement for large families). The cantons are also responsible for supervising the family allowances compensation funds. In general, they also set the rules governing how their family allowances scheme is organised and funded.
The family allowances compensation funds
The family allowances compensation funds (CAF) are in charge of implementing the family allowances schemes. They fall into one of three categories:
- cantonal CAFs: each canton has one fund.
- CAFs managed by OASI offices: to operate in a canton, these CAFs need to register with the competent authority in that canton.
- professional and interprofessional CAFs recognised by the cantons: the cantons determine the conditions under which they recognise these CAFs; in particular, they may stipulate a minimum number of members (employers and, where applicable, self-employed persons) and/or employees.
These CAFs are responsible for:
- approving and rejecting applications for family allowances, differential allowances and payments to a third party:
- paying family allowances to self-employed claimants and, in certain cases, to employees;
- setting and collecting contributions;
- reporting all information on the allowances they pay to the family allowances register.
Employers
Employers generally pay family allowances on a monthly basis, alongside the employee's salary. They must inform their employees of their entitlement, provide them with the application form and finally send the completed form to the competent CAF. If an employer is aware of a change in their employee's circumstances that may affect their entitlement, they must notify their CAF as soon as possible. Finally, family allowances are funded through contributions which the employer pays into their CAF.