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Swiss cantons allowed to set lower social-assistance rates for Ukrainian S-status refugees

Oct 18, 2026
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Swiss cantons allowed to set lower social-assistance rates for Ukrainian S-status refugees
Switzerland’s federal government has quietly moved to amend Asylum Ordinance 2 so that the country’s 26 cantons—not Bern—will decide how much social assistance is paid to Ukrainians who hold the special S-protection status. The change is urgent because roughly 46,000 Ukrainians will have lived in Switzerland for two full years by 1 March 2027, making them eligible to move from the asylum budget to ordinary social assistance. Under the existing rules they would receive the same base amount as Swiss nationals, a jump of around 30–40% compared with the leaner allowances granted to asylum-seekers. Cantonal finance directors warned of a cost explosion that could add hundreds of millions of francs to local welfare budgets once the federal flat-rate compensation ends next year. The draft ordinance therefore gives cantons the legal room to peg payments anywhere between the current asylum level and the national benchmark for residents. The Conference of Cantonal Social Directors (SODK) says that flexibility is “decisive” for sustainable integration budgets, noting that labour-market absorption of Ukrainian refugees remains uneven: employment rates range from 24% in Jura to 46% in Zurich. Municipalities, which shoulder day-to-day welfare costs, have welcomed the move but are demanding a formal role in setting the final scales. Relief agencies Caritas, HEKS and the Swiss Refugee Council (SFH) have sharply criticised the proposal. They argue that pushing payments down to the asylum level will cement poverty, slow language acquisition and ultimately raise integration costs for schools and health services. Left-leaning parties fear that unequal cantonal rates will lead to ‘welfare shopping’ and costly legal appeals alleging discrimination under the Refugee Convention. Business groups have so far stayed on the sidelines, but relocation specialists are alert: companies that hired Ukrainian talent under the S-status work permit could see higher salary expectations if welfare support is cut. In the meantime, global-mobility managers are advised to review in-house hardship allowances and prepare for wider regional disparities in living costs, particularly in French-speaking cantons that have signalled they may maintain higher benefit levels. The Federal Department of Justice and Police plans to finalise the ordinance before the end of the autumn session so that cantonal parliaments can adapt their welfare laws in time for the 1 March 2027 switchover. Should legal challenges delay implementation, cantons could be forced to make back-payments—another incentive to clarify the rules quickly.
Source: SWI swissinfo.ch

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