Premium reduction from the health insurer: who is entitled?
Health insurance often puts a strain on the budget. However, some people can apply for a reduction in their health insurance premiums. Comparis provides information.
23.02.2026
iStock/Scharvik
1. Individual premium reduction: what is it?
People in modest financial circumstances receive an individual premium reduction (IPR). This means that the federal government and the cantons pay part of the health insurance premiums – and the persons concerned pay correspondingly less. Every year, over two million people in Switzerland receive a premium reduction.
The reduction only applies to the compulsory basic health insurance – not to supplemental insurance. The basis for the premium reduction is set out in the Health Insurance Act (Art. 65 KVG). In the «Ordinance on the contributions of the cantons and the federal government to the reduction of premiums in health insurance» there are further provisions.
How does the premium reduction work?
The cantons determine what proportion of your disposable income you may spend at most on health insurance premiums. If your income falls below this threshold, you can apply for a premium reduction.
The cantonal compensation offices pay the amounts directly to the health insurer of the insured person. The advantage: the reduction is applied directly. The health insurer’s bill for policyholders is then cheaper.
Good to know: If your application is only approved during the course of the year, you will usually be reimbursed retroactively for the costs of all overpaid premiums.
Further savings on health insurance premiums
In addition to the premium reduction, you can also save on health insurance premiums. These include:
Changing your health insurance model
The benefits of health insurance are always the same – the premiums still differ sometimes significantly. Therefore, it’s best to compare premiums.
2. Who is entitled to a premium reduction?
The calculation of the premium reduction varies from canton to canton. Therefore, who is entitled also depends on the canton. The Swiss Conference of Health Directors (GDK) provides an overview of the cantonal calculation bases.
For some cantons, you can check your entitlement to premium reductions online. Further information is available from the relevant office in your canton.
Relevant criteria are generally the same in all cantons:
Income
Assets
Family circumstances
The cantons usually calculate entitlement based on tax values. Often, the tax assessment from two years ago is decisive. If an insured person pays withholding tax, the basis of calculation depends on the canton.
The calculation for the entitlement to a premium reduction is therefore based on outdated data. For this reason, it may make sense for you to check your entitlement to premium reductions independently every year. In addition, you often have to report a significant change in income to the relevant authority.
Do you receive a pension from Switzerland and live in an EU/EFTA country? Then, under certain conditions, you are entitled to a premium reduction. You can obtain more information on the subject from the KVG Joint Institution Foundation (Stiftung Gemeinsame Einrichtung KVG).
3. Who informs me about my right to a premium reduction?
In some cantons, your canton of residence will inform you about your right to a premium reduction. You will then usually receive a letter with the information.
In other cantons, you must apply for a premium reduction yourself – sometimes every year. Find out from the relevant office in your canton whether you have to submit the application yourself.
Please note: The deadline for applying for the premium reduction varies depending on the canton. In some cantons, you can apply for a premium reduction in the current year up to a certain deadline. In other cantons, you must submit the application before the beginning of the year.
4. How do I apply for a premium reduction?
The best way to proceed is as follows:
Find out about the necessary requirements and documents from the competent authority in your canton of residence. Some cantons allow you to apply for a premium reduction online.
Submit your application in good time. Please note the specified deadlines. It may take several months to check your application.
If your application is approved, the canton will notify you. It will also transfer the premium reduction to your health insurer.
After approval, the premium reduction will be visible on the invoice – or you will receive a credit for overpaid premiums with your next invoice.
5. Cantonal premium reduction: where should I register?
The graphic shows the responsible cantonal authorities.
6. Calculating the premium reduction: how does it work?
How to calculate your premium reduction depends on the canton. Many cantons offer an online calculator on their websites. You can use it to estimate the amount of your premium reduction.
7. Frequently asked questions on premium reductions
The deadline for applying for a premium reduction depends on the canton. In some cantons, you must apply for a premium reduction in the previous year. In others, you can still do this in the reference year – in Zurich, even at the beginning of the next year.
The income limit for the premium reduction is set by the cantons.. This means that the income limit for the premium reduction differs depending on the canton. In some cases, the limit even differs within a canton.
In addition, the income limits are also dependent on your family situation. They vary depending on your marital status and the number of children you have.
It is best to obtain information from the relevant cantonal office, where the income limit lies in your canton.
In Zurich, the income limits depend on:
your age
your Marital status
The Number of children
Your residential region
You can see which region you live in on the SVA Zurich website.
Income limit for individuals
If you have assets of over CHF150,000, you will not receive a premium reduction. A limit of CHF300,000 applies to single parents.
The following table shows up to which income individuals are entitled to a premium reduction in the canton of Zurich.
| Who? | No children | One child | Two children | Three children | |
|---|---|---|---|---|---|
| Region 1 | Young adults (18-25 years) | CHF 45,900 | CHF 70’500 | CHF 76’700 | CHF 92’100 |
| Adults (over 25 years of age) | CHF 64’000 | CHF 79’400 | CHF 94’800 | CHF 110’200 | |
| Region 2 | Young adults (18-25 years) | CHF 42’000 | CHF 70’500 | CHF 70’500 | CHF 84’000 |
| Adults (over 25 years of age) | CHF 58’400 | CHF 72’400 | CHF 86’400 | CHF 100’400 | |
| Region 3 | Young adults (18-25 years) | CHF 38’900 | CHF 70’500 | CHF 70’500 | CHF 77’900 |
| Adults (over 25 years of age) | CHF 54,400 | CHF 70,500 | CHF 80,400 | CHF 93,400 |
Source: SVA Zurich
Income limit for married persons
If you have assets of over 300,000 francs, you will not receive a premium reduction.
In the following table you can see up to what income married persons in the canton of Zurich are entitled to a premium reduction.
| Who? | No children | One child | Two children | Three children | |
|---|---|---|---|---|---|
| Region 1 | Young adults (18-25 years) | CHF 73,440 | CHF 85,760 | CHF 98,080 | CHF 110,400 |
| Adults (over 25 years of age) | CHF 102’400 | CHF 114’720 | CHF 127’040 | CHF 139’360 | |
| Region 2 | Young adults (18-25 years | CHF 67’200 | CHF 78’400 | CHF 89’600 | CHF 100’800 |
| Adults (over 25 years of age) | CHF 93’440 | CHF 104’640 | CHF 115’840 | CHF 127’040 | |
| Region 3 | Young adults (18-25 years | CHF 62’240 | CHF 72’640 | CHF 83’040 | CHF 93’440 |
| Adults (over 25 years of age) | CHF 87’040 | CHF 97’440 | CHF 107’840 | CHF 118’240 |
Source: SVA Zurich
In the canton of St. Gallen, there is a maximum burden limit. This depends on your situation and your salary. It is measured as a percentage of your salary, but increases as your salary increases.
| Who? | Lower limit | Increase by |
|---|---|---|
| Single people without children | 12.16% with a relevant income of up to 18’700 francs. | 0.0002% per franc above the lower income limit. |
| Married couples without children | 12.16% for a relevant income of up to 28’050 francs. | 0.0003% per franc above the lower income limit. |
| Single people with children | 10.96% with a relevant income of up to 18’700 francs. The limit increases by 8’250 francs per adult up to the age of 25. The limit increases by 5’610 francs per child. | Per franc above the lower income limit:
|
| Married couples with children | 12.41% for a relevant income of up to 28,050 francs. The limit increases by 9,350 francs per adult up to the age of 25. The limit increases by 5,610 francs per child. | Per franc above the lower income limit:
|
Example: Single people without children with a salary of 15,000 francs receive a reduction on all premiums that exceed 1,824 francs (15,000 * 12.16%). With a salary of 25,000 francs, the burden limit is 13.42%. They receive a reduction for all premiums that exceed 3,355 francs.
How to calculate your burden limit:
(Your salary in francs – lower limit in francs) * increase in % + 12.16
Example for single people without children: (25,000 – 18,700) * 0.0002% + 12.16 = 13.42%
Income limit for premium reductions in St. Gallen
In the canton of St. Gallen, there is an income cap for premium reductions. In the following table, you can see the household income from which you will no longer receive a premium reduction.
| Taxation | Who? | No children | One child | Two children | Three children | Four children | Five or more children |
|---|---|---|---|---|---|---|---|
| Ordinary taxation | Single people | CHF 41’700 | CHF 65’700 | CHF 65’700 | CHF 70’700 | CHF 75’700 | CHF 80’700 |
| Married couples | CHF 62’600 | CHF 86’500 | CHF 86’500 | CHF 91’500 | CHF 96’500 | CHF 101’500 | |
| Withholding tax | Single people | CHF 55’600 | CHF 87’500 | CHF 87’500 | CHF 94’200 | CHF 100’900 | CHF 107’500 |
| Married couples | CHF 83’500 | CHF 115’400 | CHF 115’400 | CHF 122’000 | 128’700 | CHF 135’400 |
In the canton of Aargau you are entitled to a premium reduction if the average health insurance premiums amount to more than 17.5% of your household income. Household income is calculated after income deductions. The following deductions apply:
for single people: 8’500 francs
for single people with at least one child: 12’200 francs
for married couples: 0 francs
for married couples with at least one child: 8’000 francs
per child or jointly classified young adult in education: 2’500 francs
In the canton of Basel-Landschaft, you will receive a premium reduction if the premiums amount to at least 7.75% of your relevant annual income. The upper limits in the following table apply.
| Who? | No children | One child | Two children | More than two children, additionally per child |
|---|---|---|---|---|
| Single people | CHF 31’000 | CHF 52’000 | CHF 68’000 | CHF 11’000 |
| Married people | CHF 51’000 | CHF 72’000 | CHF 88’000 | CHF 11’000 |
In the canton of Lucerne you receive a premium discount if the indicative premiums amount to at least 10% of your relevant annual income. If your relevant income increases by one franc, the maximum percentage increases by 0.00006%.
This percentage is also your own contribution. This means that you pay this in any case. If the eligible premiums are lower than your own contribution, you will not receive a premium discount.
Example: Do you earn 10’000 francs a year? Then you receive a premium discount if the benchmark premiums exceed 10.5% of your annual income. For an income of 50’000 francs, the percentage rises to 13%.
Parents of children and young adults also receive, up to a maximum income, a fixed child allowance for premiums. The following upper limits apply:
Single people: 77,114 francs
Parents: 96,392 francs
Important: There are also limits on existing assets. If you exceed these, you will not receive a premium reduction. The limits are as follows:
200,000 francs for married couples or couples in a registered partnership
100,000 francs for single people
50,000 francs per child or young adult in education/training living in the same household
In the Canton of Bern the relevant income for the premium reduction for individuals is 35,000 francs. For families with children it is 45,000 francs.
This article was first published on 18.08.2022
