Statute S and 13th AVS: Ticino asks for more funds (cross-border guide)

Canton Ticino claims federal co-financing for 1,700 Ukrainian refugees and 13th AVS. Cantonal government vs Bern: impact on taxes and the labour market.
Context
In a nutshell
- Ticino requests that Bern covers the costs of the S status for 1,700 Ukrainian refugees
- The 13th AVS requires about 15 million additional financing from the Canton
- Only 25% of Ukrainian refugees in Ticino have found work; competition with "border jobs" is an obstacle
Key facts
- What: Claim of federal co-financing by statute S (transformation into permit B after 5 years) and 13th AVS
- When: Today's meeting of the cantonal government and deputation of Ticino
- Where: Canton Ticino (1,700 Ukrainian refugees)
- Who: Marina Carobbio Guscetti, Bruno Storni, Cantonal Government
- Amount: ~30 million from January per ordinance; ~15 million additional AVS costs
- Barrier: 25% employment among refugees; competition with frontier workers on the labour market
The Canton of Ticino does not intend to take on the new federal burdens on its own. At today's meeting, the cantonal government and the Ticino deputy to the Federal Chambers launched a call in Bern: the Confederation must participate in the costs of the S statute for Ukrainian refugees and in the financing of the 13th AVS. Marina Carobbio Guscetti, President of the Council of State, was clear: "Given the financial results of the Confederation, I think there is a margin to do so".
Statute S and permit B
Bern has decided to extend the S statute for those who come from Ukraine and have served in the military. In addition, after 5 years, it will be transformed into
Operational details
How the 13th AVS affects border crossers
The 13th AVS is nothing new for pensioners in Switzerland. However, the way it is financed — and who pays the bill — directly touches the cantonal budgets. If you reside in Ticino and receive AVS benefits (as a border worker who has paid contributions in Switzerland), the 13th is already paid. The problem, from the cantonal point of view, is that Bern wants to offset the cost by supplementing its income with the additional taxes of the cantons.
This dynamic has an indirect implication on the cantonal services you use on a daily basis: if Ticino loses 15 million in revenue to the Confederation, it will have to downsize elsewhere — reducing investments in infrastructure, health, education, or raising taxes. For the border worker resident in Ticino, it means monitoring tax developments. If the Canton compensates for the loss with increases in cantonal or municipal taxes, your tax burden may increase. Use the calcolatore fiscale to simulate possible impacts on your personal situation.
The Ticino labour market under pressure
The employment situation of Ukrainian refugees (25% employment in Ticino) reveals a broader dynamic: the Ticino labour market structurally suffers from a shortage of quality jobs. The “frontier jobs competition” referred to by Reversals means that many local employers prefer to hire Italian frontier workers
Useful planning tools
To estimate your pension strategy, use the pension planner and the pillar 3 simulator.
Key points
What to Monitor in the Coming Months
The discussion between the cantonal government and Bern will focus on three crucial decisions. The first concerns the determination of federal co-financing for the S status: Bern will decide whether to participate in the costs of maintaining the 1,700 refugees and their labor and social integration. A negative answer would mean that Ticino would have to find alternative resources — by increasing cantonal or municipal taxes or cutting public services.
The second decision is on the financing method for the 13th AVS. Although the benefit is already active for AVS beneficiaries, the methods of cantonal coverage could change. If Ticino is forced to cede the additional revenue to Bern, it could increase ordinary cantonal tax to compensate.
The third concerns flood funding. If you live in affected areas (including Vallemaggia), delays in federal funds could slow down reconstructions, infrastructure restoration, and support for damaged businesses. Keep an eye on announcements from the Ticino Region and the individual affected municipalities.
Concrete Actions for Frontier Workers
If you receive AVS in Switzerland: Verify through the AVS calculator whether the 13th is already included in your annual benefit and what amount you receive. Consult your Swiss employer to understand if there are changes in withholding tax or income tax declaration related to supplementary taxation on the 13th. Also monitor communications from the Ticino Cantonal Office of Social Security for any increases in cantonal taxes.
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Frequently Asked Questions
- I receive AVS in Ticino. Will the 13th AVS change for me?
- The 13th AVS is already planned for all beneficiaries (including border workers). The amount received will not change. However, the Confederation asks the Cantons to finance the cost through additional taxes. Ticino is opposed because this erodes its own revenue. For you, it means monitoring whether cantonal taxation increases to make up for lost revenue.
- How does competition with Ukrainian refugees affect the labour market for frontier workers?
- 25% employment among Ukrainians reflects a structural shortage of skilled jobs in Ticino. Employers often prefer Italian border workers for contractual flexibility and costs. If the Canton invests in refugee training (as it requires), competition on unskilled tasks could grow. Frontier workers with specific skills and specialisations are less exposed.
- When will federal funds be available for the integration of Ukrainians?
- The Confederation has allocated about 30 million since next January for the ordinance. However, Ticino claims a greater share of the structural costs (social aid, training, housing). Federal decision times are variable; the delay in flood funding (two years after the event) suggests possible slowdowns for this game as well.
- The 13th AVS will cost Ticino 15 million. Who will pay this amount?
- Bern proposes that the Cantons cover the cost through the additional tax revenue generated by the 13th canton. Ticino is opposed (because this erodes its own revenue). The federal decision will determine who will pay: Cantons via local taxes, Confederation via central cash, or partnership.
- If I move to Ticino from the Italian border, how does the funding debate impact?
- Not directly on the G/B permit procedure. However, if Ticino social services are overloaded due to lack of federal co-financing, the time for answers on accommodation, integration paths, complementary social benefits — which even new resident border workers may need - could be delayed.
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