Urs Hofmann, justice minister in the canton of Aargau, confirmed the decision in an interview with a Swiss magazine, news agency ATS said on Wednesday.
The move will recognize the huge efforts put in by a task force of some 40 investigators who last week finally caught the man behind a horrific attack on a mother and her family in December.
Despite intense investigations, police had met a dead end by mid-February when the government decided to post a 100,000-franc reward – one of the largest ever offered in Switzerland – for information that would help catch the killer.
But no such information was forthcoming, so the reward was never paid.
It wasn't until last Friday that police announced they had finally caught the murderer.
The 33-year-old man, who admitted to the savage killings, was a student and local youth football coach who lived with his mother in Rupperswil just a short distance from the house where the family were slain.
Police did not say how their investigation came to focus on him.
It has not yet been decided whether the reward money will be placed in a communal fund for the investigators or if it will be divided up between them, Hofmann told ATS.
The decision had the full backing of the community of Rupperwsil, he said.