Switzerland said it would make a one-off payment of 50,000 Swiss francs (£47,755) to severely injured survivors and bereaved families of the New Year bar fire in Crans-Montana.
The blaze killed 41 people and injured 115 more, according to Swiss authorities.
The fire appeared to have been started by the use of sparkling candles that ignited foam soundproofing on the bar's basement ceiling, witnesses and prosecutors said.
Most of those who died were teenagers, and many were foreigners, including several from France and Italy.
The so-called solidarity contribution aims to provide swift financial support to victims and serve as a gesture of compassion, Switzerland's governing Federal Council said.
In principle, the payment should apply to each individual who lost their life, as well as every person who was taken to hospital, the Federal Council said in a statement.
"The Federal Council shares with the victims and their families the desire for truth and justice," Swiss President Guy Parmelin said at a news conference.
"We too want to know what happened, why, and how it could have been prevented."
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The Federal Council said it will also convene a roundtable to help victims, insurers and authorities reach out-of-court settlements, potentially avoiding lengthy legal battles.
It aims to contribute up to 20m francs to such settlements.
The Federal Council said it hoped parliament would swiftly expedite the legislation it had drafted to help victims.
The government also aims to set aside 8.5 million francs to help affected cantons cover the huge costs.
The government said it had taken the steps following Federal Office of Justice analysis that found gaps in existing support systems, which are mostly designed for individual cases and struggle with large-scale disasters.
(c) Sky News 2026: Switzerland bar fire victims to receive one-off payment
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