Table of Contents

Subsidies are a decisive factor for many childcare providers in Switzerland: they secure the financial foundation, enable affordable rates for parents and ensure stable occupancy. However, the Swiss subsidy system is complex -- responsibilities are distributed across the federal government, cantons and municipalities, and the models differ considerably from place to place.

In this guide, you as a childcare provider -- whether daycare, playgroup, childminder or nanny organisation -- will learn how to apply for subsidies, what requirements you must meet and what advantages and disadvantages are associated with them.

---

Table of Contents

1. Object Funding vs. Subject Funding
2. The Service Agreement with the Municipality
3. Requirements: What the Municipality Expects from You
4. Advantages of a Subsidy Agreement
5. Disadvantages and Challenges
6. Federal Financial Aid
7. Start-up Funding: Foundations and Funds
8. Canton Examples: ZH, BE, BS
9. Step by Step: Applying for a Subsidy Agreement
10. Frequently Asked Questions (FAQ)

---

Object Funding vs. Subject Funding

Before dealing with specific subsidy programmes, you need to understand the two fundamental funding models in Swiss childcare. Depending on which model applies in your municipality, the effects on your operation differ significantly.

Object Funding

With object funding, money flows directly to you as the provider -- i.e. to the "object" (the institution). The municipality or canton pays you a contribution per subsidised place or a flat-rate operating contribution. In return, you offer a certain number of places at reduced rates.

How it works in practice:

• You conclude a service agreement with the municipality
• The municipality pays you, for example, a fixed contribution per childcare place per month
• You charge parents income-dependent rates according to the municipality's specifications
• The difference between the full costs and the parental contributions is covered by the subsidy

Prevalence: Object funding models are particularly common in Western Switzerland (cantons FR, GE, NE, VD) but also occur in German-speaking Switzerland, for example in the City of Zurich.

Subject Funding

With subject funding, the parents -- i.e. the "subjects" -- receive financial support that they redeem with an approved provider. The best-known instrument is childcare vouchers.

How it works in practice:

• The municipality issues income-dependent childcare vouchers to parents
• Parents redeem the voucher with you as an approved provider
• You invoice the municipality for the voucher amount
• Parents pay the difference between your rate and the voucher value

Prevalence: Subject funding is the dominant model in German-speaking Switzerland, e.g. in the cantons of Bern, Lucerne and in many Zurich municipalities.

Comparison Table

Criterion	Object Funding	Subject Funding
Money flows to	Provider directly	Parents (indirectly to provider)
Rate setting	Mostly specified by municipality	Freer, but voucher value is limited
Planning security	High (fixed contributions)	Medium (dependent on demand)
Competition	Lower (contracted places)	Higher (parents choose freely)
Administrative effort	Reporting obligations to municipality	Voucher billing
Prevalence	Western Switzerland, individual cities	German-speaking Switzerland (majority)

Tip: Enquire with your local municipality which model applies. Some municipalities also work with hybrid models. More on the parent perspective can be found in the guides Subsidies in Childcare and Applying for Childcare Vouchers.

---

The Service Agreement with the Municipality

The service agreement (also called a contract or subsidy agreement) is the central document governing your collaboration with the municipality. Without a service agreement, you will not receive subsidies in most municipalities.

What Is a Service Agreement?

A service agreement is a contract between you as a childcare provider and the municipality (or canton). It sets out the mutual rights and obligations:

• Number of subsidised places you offer
• Quality requirements you must meet
• Rate structure and parental contributions
• Amount and type of subsidy (per place, flat rate, etc.)
• Reporting obligations and control mechanisms
• Duration and notice periods

How to Obtain a Service Agreement

The path to a service agreement varies by municipality but generally follows this process:

1. Needs assessment: The municipality assesses whether there is a need for additional subsidised places
2. Initial contact: You express your interest to the responsible office (social department, community affairs division, children and youth services)
3. Requirements profile: The municipality informs you of the conditions you must meet
4. Application: You submit a request with an operating concept, budget and proof of licence
5. Negotiation: Terms are discussed (number of places, rates, duration)
6. Contract conclusion: Both parties sign the service agreement

Important: A valid operating licence is always a prerequisite for a service agreement. Make sure your licence is current before submitting your application.

---

Requirements: What the Municipality Expects from You

Municipalities do not grant subsidies without conditions. You must meet and maintain certain quality and operational standards. The specific requirements vary by municipality, but the following areas are almost always relevant:

Staff-to-Child Ratio

The staff-to-child ratio is a central quality criterion. Many municipalities follow the recommendations of kibesuisse (Swiss Childcare Association):

Age Group	Recommended Ratio (kibesuisse)
Babies (0--18 months)	1 professional : 3 children
Toddlers (18 months -- 3 years)	1 professional : 5 children
Kindergarten children (3--6 years)	1 professional : 8 children
Mixed group (up to 12 children)	min. 1 qualified professional

Staff Qualifications

The municipality generally expects:

• Daycare management: Training as a childcare professional (FaBe) with additional qualification or a diploma from a university of applied sciences in social pedagogy
• Group leaders: Federal Certificate of Competence (EFZ) as FaBe or equivalent qualification
• Minimum quota of trained staff: Often 50--66% of the care team
• Continuing education requirement: Regular further training must be documented

Rate Requirements

With object funding, the municipality generally specifies a rate structure:

• Income-dependent scaling of parental contributions
• Maximum rates that you may not exceed
• Minimum rates for families with higher incomes

With subject funding (childcare vouchers), you are generally freer in setting rates but must stay within the standard cost framework so that parents can redeem their vouchers with you.

Further information on rate setting can be found in the guide Calculating Daycare Rates.

Operational Requirements

• Opening hours: Minimum opening hours (e.g. 11 hours per day, Monday to Friday)
• Holiday policy: Maximum closure days per year (often max. 3--4 weeks)
• Space standards: Minimum area per child (typically 5--6 m² usable space per place)
• Outdoor space: Access to a suitable outdoor area
• Meals: Balanced meals according to recognised nutrition guidelines
• Pedagogical concept: Written concept with a clear educational mandate

Reporting Obligations

• Annual report with key figures (occupancy, staffing structure, finances)
• Annual accounts with audit
• Statistics on children cared for and care hours
• Reporting obligation for significant changes (staff changes, concept changes)

---

Advantages of a Subsidy Agreement

A subsidy agreement brings you as a provider tangible advantages that go beyond the pure funding contribution:

Financial Stability

• Guaranteed income: Subsidy contributions are contractually secured and independent of individual parents' ability to pay
• Planning security: Service agreements typically run for several years (2--4 years)
• Lower collection risk: With object funding, the municipality pays directly to you

Better Occupancy

• High demand for subsidised places: Parents prefer daycare centres with subsidies, as their costs are significantly reduced
• Waiting lists: Subsidised daycare centres often have waiting lists, ensuring consistently high utilisation
• Less acquisition effort: You need to do less marketing to fill your places

Trust and Reputation

• Quality signal: A service agreement signals to parents that your facility has been assessed and recognised by the municipality
• Higher trust: Parents tend to trust subsidised facilities more
• Network: You are part of the municipality's official childcare provision and are recommended on their website and in advisory sessions

Access to Further Funding

With an existing service agreement, you often also qualify for additional support:

• Federal contributions (stimulus funding)
• Cantonal support programmes
• Reduced-cost premises (rent reductions through the municipality)

---

Disadvantages and Challenges

Subsidies are not a gift without conditions. As a provider, you must also expect restrictions:

Rate Requirements and Limited Pricing Freedom

• You cannot set your rates freely according to market conditions
• Rate increases often require approval from the municipality
• The specified rates do not always cover your actual costs, especially with rising staff costs

Control and Oversight

• Regular inspections and audits by the municipality
• Unannounced visits are provided for in some agreements
• The municipality can reduce or cancel the subsidy in case of quality deficiencies

Administrative Effort

• Reporting obligations require additional working time (annual reports, statistics, audited accounts)
• Billing processes for subsidy contributions can be bureaucratic
• Documentation requirements for childcare vouchers (electronic recording, reconciliation)

Dependency

• You depend on the political stability of subsidies
• Austerity rounds or political changes can lead to cuts
• Transitioning away from subsidies (e.g. if you lose the contract) can be existentially threatening

Limited Flexibility

• Changes to the operating concept often need to be coordinated with the municipality
• Opening hours and holiday policies are frequently prescribed
• Staffing decisions can be restricted by qualification requirements

---

Federal Financial Aid

In addition to municipal and cantonal subsidies, there is also financial support at the federal level that affects you as a provider.

Stimulus Programme (Initial Funding)

The Federal Act on Financial Aid for Childcare (stimulus funding) has been supporting the expansion of childcare in Switzerland since 2003. Both chambers of parliament approved the extension of federal contributions until the end of 2026 in the final vote.

What is funded:

• Creation of new childcare places in daycare centres and with childminder families
• Adaptation of existing provision to changing needs

How it works:

• You submit an application to the Federal Social Insurance Office (BSV) through your canton
• The contributions are degressive: in the first two operating years you receive the most, then contributions decrease step by step
• The stimulus funding does not cover full costs but is intended to facilitate the start

New Childcare Allowance (Counter-Proposal to the Daycare Initiative)

In December 2025, parliament adopted the indirect counter-proposal to the daycare initiative. This new federal law provides for a childcare allowance for parents of children up to eight years old.

Key points of the childcare allowance:

• At least CHF 100 per month for one day of care per week
• CHF 50 additional for each further half day of care
• Funded through contributions from employers, employees and cantons
• Estimated total cost: around CHF 700 million annually
• Additionally: CHF 100 million over four years for the creation of new childcare places

What does this mean for you as a provider?

• The childcare allowance reduces costs for parents and increases demand
• New funding for place creation can help you expand
• The exact implementation and entry into force are still pending -- keep regularly informed about the current status

Note: The daycare initiative could still come to a vote despite the counter-proposal. Follow the political developments, as they directly affect your business model.

---

Start-up Funding: Foundations and Funds

If you want to establish a new daycare centre or expand an existing provision, private foundations and funds can be an important source of financing alongside public subsidies. More on establishing a daycare can be found in the guide Starting a Daycare in Switzerland.

Possible Funding Sources

Source	Type of Support	Focus
Federal stimulus funding	Degressive contributions (max. 3 years)	New places
Cantonal start-up assistance	One-off or time-limited contributions	Varies by canton
Municipal loans	Interest-free or low-interest loans	Infrastructure
Foundations (e.g. Jacobs Foundation)	Project-linked contributions	Innovative models, quality development
Ernst Goehner Foundation	Start-up funding	Social projects
Migros Culture Percentage	Project funding	Social concerns
Lottery funds	Cantonal funds	Non-profit projects
Guarantee cooperatives	Guarantees for bank loans	SME support

Tips for Successful Applications

• Professional operating concept: Foundations expect a well-thought-out pedagogical concept and a realistic business plan
• Proof of need: Demonstrate with figures (waiting lists, municipal needs analyses) that your provision is needed
• Own contribution: Most foundations fund only part of the costs -- show what contribution you are making yourself
• Sustainability: Explain how your operation will become self-sustaining after the start-up funding ends
• Apply early: Foundation applications can have lead times of several months

---

Canton Examples: ZH, BE, BS

Swiss childcare is organised in a strongly federalist manner. Here is a comparison of three important cantons so you can see how differently the systems work.

Canton of Zurich

Funding model: Mixed -- depending on municipality, object or subject funding

• In the City of Zurich, private daycare centres work with a contract with the Social Department. Only daycare centres with such a contract can offer subsidised places
• The subsidisation of care depends on the income and assets of the parents
• Other municipalities in the canton (e.g. Winterthur, Thalwil) increasingly use childcare vouchers
• Throughout the canton: only providers with a service agreement can submit subsidy applications

Special feature: The City of Zurich also operates its own municipal daycare centres alongside the contracted private providers.

Further information: Canton of Zurich

Canton of Bern

Funding model: Subject funding via childcare vouchers

• Municipalities issue income-dependent childcare vouchers to parents
• Parents can redeem the vouchers at any approved daycare centre or childminder organisation throughout the canton
• As a provider, you must register and be approved through the kiBon platform
• The voucher amount depends on the parents' income, assets and family size

Special feature: The Bern system offers you as a provider relatively high pricing freedom, as the vouchers are calculated independently of your rate. However, you must remain competitive.

Further information: Canton of Bern

Canton of Basel-Stadt

Funding model: Cantonal care contributions (subject funding with cantonal steering)

• The Canton of Basel-Stadt distinguishes between daycare centres with care contributions and those without
• In daycare centres with care contributions, parents pay a maximum of CHF 1,600 per month for a full-time place
• The canton pays a supplementary flat rate of CHF 950 per full-time place per month for children under 18 months
• Care contributions are calculated based on income and assets (last tax assessment)
• Minimum care: 40% (e.g. four half-days or two full days per week)

Special feature: In Basel-Stadt, the system is uniformly regulated at the cantonal level -- you negotiate not with individual municipalities but with the canton's education department.

Further information: Canton of Basel-Stadt

Canton Comparison at a Glance

Criterion	Zurich (City)	Bern	Basel-Stadt
Model	Contract/Object	Childcare vouchers	Care contributions
Contract partner	Social Department	Municipality (via kiBon)	Education Department
Pricing freedom	Low (prescribed)	High (voucher independent)	Medium (maximum rate)
Max. parental contribution	Income-dependent	Free rate minus voucher	CHF 1,600/month (full-time)
Supplementary contributions	Yes (via contract)	No (voucher only)	CHF 950/place (under 18 mo.)

---

Step by Step: Applying for a Subsidy Agreement

The following guide provides general orientation. The exact steps depend on your municipality and canton.

Step 1: Ensure the Basics

• Obtain an operating licence: No subsidy without a valid licence. Details in the guide Licence for Childcare
• Clarify legal form: Association, Ltd (GmbH) or sole proprietorship -- the legal form can affect subsidy eligibility
• Create a pedagogical concept: A professional, written concept is mandatory

Step 2: Contact the Municipality

• Enquire with the responsible office of your municipality (community affairs, social services, children and youth division)
• Ask specifically: Which funding model applies? Is there a need for additional subsidised places? What requirements apply?
• Obtain the relevant regulations and forms

Step 3: Prepare the Application

Your application should generally include the following documents:

• Operating licence (copy)
• Pedagogical operating concept
• Budget and financial plan (3--5 years)
• Proof of staff qualifications
• Floor plan and usage concept
• Rate structure (proposal)
• Proof of insurance
• Commercial register entry / association statutes

Step 4: Submit the Application and Negotiate

• Submit the application on time
• Be prepared for follow-up questions and negotiations -- the municipality generally reviews your application thoroughly
• Service agreements are often approved by the municipal council, which can take several months

Step 5: Conclude the Contract

• Read the service agreement carefully -- pay particular attention to notice periods, inspection rights and sanctions
• Have the contract reviewed by a professional (e.g. trustee or legal adviser)
• Only sign when all conditions are manageable for you

Step 6: Implementation and Ongoing Obligations

• Maintain all agreed standards
• Submit reports and statements on time
• Maintain contact with the municipality -- proactive communication about problems prevents conflicts
• Document your quality work continuously (e.g. with the QualiKita label)

---

Frequently Asked Questions (FAQ)

Can I receive subsidies immediately as a new daycare?

Generally not immediately. Most municipalities expect you to have a valid operating licence and to already be operational before you can apply for a service agreement. However, some municipalities offer start-up financing or facilitate access for new establishments when there is a clear need. The federal stimulus funding is explicitly aimed at new provision.

How long does it take to get a service agreement?

Expect 3 to 12 months from first contact to contract conclusion. In larger cities, it can be quicker as processes are standardised. In smaller municipalities, the political decision-making process can take longer as the municipal council must approve.

What happens if I do not meet the requirements?

The municipality can take various measures: written warning, temporary conditions, reduction of the subsidy or, in the worst case, termination of the service agreement. However, there is usually a graduated process that gives you the opportunity to remedy deficiencies.

Can I receive subsidies and federal contributions at the same time?

Yes, this is generally possible and even common. The federal stimulus funding supplements municipal and cantonal subsidies. Make sure you declare all contributions received transparently.

Do I also need a service agreement as a playgroup or childminder?

This depends on the municipality. Many municipalities have separate programmes for childminder families and playgroups. In cantons with childcare vouchers, childminder organisations must also register to be able to accept vouchers.

What does the reporting cost me?

The administrative effort for reporting obligations amounts to approximately 5--10% of the daycare management's working time based on experience. Larger facilities with multiple groups benefit from economies of scale. Invest in good accounting and administration software to minimise the effort.

How does the new childcare allowance affect my business?

The childcare allowance adopted by parliament at the end of 2025 reduces costs for parents and is likely to further increase demand for childcare places. As a provider, you benefit indirectly from higher demand. The additional CHF 100 million for new places can help you expand. Pay attention to the implementation details as they become available.

---

Conclusion

Subsidies are a powerful instrument that provides your childcare facility with financial stability, secured occupancy and greater trust from parents. However, the path to subsidies requires preparation, patience and the willingness to consistently maintain quality standards.

Inform yourself early with your local municipality about the applicable models and requirements. Prepare a convincing operating concept and plan sufficient time for the application process. With the right strategy, subsidies can place your childcare provision on a solid financial foundation.

---

Sources: Federal Social Insurance Office (BSV), kibesuisse -- Swiss Childcare Association, Social Department of the City of Zurich, Canton of Bern Family Portal, Education Department Canton of Basel-Stadt, Swiss Association of Cities. As of: February 2026.