The poverty line is the sum of total spending required to cover your most basic needs. In Switzerland, a number of different poverty line models are used, and each of these is calculated differently. The most important poverty thresholds are the poverty line used in debt collection cases, the poverty lines used for calculating welfare benefits, and the poverty line used to calculate supplemental benefits (EL) from the Old-Age and Survivor’s Insurance (OASI).
- Swiss poverty line in debt collection (Bex)
The Bex is a poverty line which is used when determining attachments of income to repay debts. Only the portion of income which is above the poverty line can be seized. The Bex is calculated on a case-by-case basis in keeping with cantonal guidelines. Basic living expenses which are accounted for when calculating the Bex include the costs of these items:
- Food
- Clothing
- Personal hygiene and healthcare
- Housing
- Heating
- Social security
- Commuting to work
- Children’s schooling
The poverty line also plays a role in determining whether you can get a loan. The higher your basic living costs are, the less you can borrow. Lenders use the cantonal Bex guidelines to determine the poverty line of a prospective borrower. But in order to protect borrowers from over-indebtedness, the process used to determine the poverty line in debt capacity calculations is somewhat different to that used in debt collection. You can find detailed information about this in the guide to Swiss debt capacity checks.
The Bex model is also used by cantons for poverty line calculations in Swiss family law. In this case, the poverty line plays a role in determining alimony and child support. Required payments cannot be higher than the difference between your poverty line and your full income.
The social poverty line used for welfare calculations is also governed on a cantonal level. The cantons generally use the guidelines set down by the Swiss conference on social services (SKOS). This association makes recommendations about the flat amounts of money needed to cover basic living, housing, and healthcare expenses. The recommendation for basic living expenses is around 1000 francs for a single person. The more people share the same household, the smaller the per-capita amount is. In addition to basic material needs, the social poverty line also accounts for other needs on a case-by-case basis.
- Poverty line in EL calculations
When used in relation to pensions from the OASI and disability insurance, the poverty line is usually referred to as minimum living expenses. You can apply for supplemental benefits if your personal wealth falls below certain thresholds and your pensions, combined with other sources of income, are not sufficient to cover basic living expenses. Several different costs are accounted for, up to certain limits. Other aspects, like whether you live in your own home or in a care home, also play a role. You can calculate possible supplemental benefits online.
More on this topic:
Debts in Switzerland: Which assets can and cannot be seized?
Swiss debt capacity requirements explained
How to deal with debt collection in Switzerland
Debt: Practical steps towards becoming debt-free
