The more you work, the more you stay: the Ticino laps reform (cross-border guide)

Context

In a nutshell

• The Ticino League calls for a reform of the laps with temporary work incentives
• Objective: eliminate the "poverty trap" where increasing wages reduces benefits
• Model already tested in social assistance: supplement of CHF 300 for those who reach 100% activation

Key facts

• What: Motion to reform the Law on Harmonization and Coordination of Social Benefits (laps)
• When: Recently presented at the Grand Council
• Where: Bellinzona, Ticino
• Who: Grand Councillors Stefano Tonini and Alessandro Mazzoleni (and co-signatories)
• Amount: Up to CHF 300 per month supplement for 100% job activation

A motion by the Ticino League proposes a profound reform of the laps to strengthen incentives to work and promote the economic autonomy of the beneficiaries. The proposal, presented by the great directors Stefano Tonini and Alessandro Mazzoleni and co-signed by Raffaella Zucchetti, Omar Balli, Sem Genini and Stefano Quadri, starts from a concrete observation: the increase in the cost of living and, above all, in health insurance premiums (LAMal/KVG) are increasingly eroding the disposable income of Ticino's domestic economies.

The motioners recognise the essential role of cantonal social benefits, but call on the system to give higher priority to work, vocational reintegration and economic autonomy than a lasting dependence on state aid.

The

Operational details

Concrete implications for beneficiaries and migration law

The proposed additional incentive should not constitute a new permanent benefit, but rather a time-limited promotional component. For this reason, the movers request that, to the maximum extent permitted by higher law, it be reserved for Swiss citizens and foreigners holding a residence permit C.

This choice has implications for the group of beneficiaries: the State Council will have to find a legally sustainable solution, taking into account the different situations of EU/EFTA citizens, third-country nationals, and other statuses protected by federal or international law. This is not a purely administrative matter, but one of compliance with Swiss migration law.

AFI and API: a new legal qualification

A second chapter of the proposal concerns the supplementary allowance (AFI) and the early childhood allowance (API). The signatories request a review of their regulations so that they are configured as social benefits for economic support linked to need and subsidiarity, and when reasonably required, activation towards autonomy, rather than as family promotion measures.

This is a delicate move. Federal case law, particularly the DTF 141 II 401 decision, has qualified AFI and API as family policy instruments, excluding them from constituting social aid under migration law for this very reason. DTF 143 I 1 has also reconstructed the origin and family purposes of the benefits and examined the different access conditions provided for Swiss citizens and foreigners.

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Key points

What changes for those receiving social benefits

If the motion is approved by the Grand Council and subsequently implemented by the State Council, LAPS benefit recipients will be able to count on stronger incentives when they increase their work activity. Instead of losing franc for franc the help they received, they will have access to an additional franchise, financial incentives, and reimbursement of expenses directly related to work.

In practice, the choice to move from a 40% job to a 60% job would become concretely advantageous, as the net (salary + incentives - reduction in aid) would be significantly positive.

How to monitor and act

Those currently receiving social benefits in Ticino should: 1. Check the text of the motion when it is voted on in the Grand Council (normally on the parliamentary transparency portals of Ticino) 2. Contact the AI Office (Integrated Assistance) or the cantonal social service for clarifications on the times and methods of implementation 3. Concretely evaluate whether increasing the degree of employment is convenient, once the details of the incentives are known

Those currently unemployed or underemployed and who may be entitled to LAPS should monitor the evolution of the reform: if it passes, it could become economically sensible to seek more hours of work.

Understanding the context of LAMal premiums

The motion itself starts from a crucial premise: the premiums of the health insurance (LAMal/KVG) are eroding the available income of Ticino families. This is a relevant national data point: LAMal premiums vary by canton and age class, and the Canton of Ticino provides cantonal subsidies to reduce the burden on low-income beneficiaries.

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