Pension Reform in Switzerland for 2024

Pension Reform in Switzerland 2024Two major pension reforms in Switzerland for 2024 were voted on by the Swiss population this month. The 13th-month retirement pension (1st pillar) was approved and the increase in retirement age was rejected. Swiss citizens decided that the reference age should not be raised and that retirees of an old age pension will receive a 13th annual pension payment in the future.

Employers and brokers should understand the following:

  • All retirees will receive a 13th monthly OASI pension in the future. Although the initiative specifies the provision of a 13th monthly OASI pension, there’s a possibility the Federal Council could opt for a more practical implementation by increasing all monthly OASI pensions by 8.33%, which mathematically corresponds to the addition of a 13th monthly OASI pension.
  • Recipients of a disability pension are not affected by a 13th monthly OASI pension.
  • The 13th monthly OASI pension should not be considered when calculating supplementary OASI benefits.
  • The initiative for the 13th monthly OASI pension did not contain detailed implementation plans. It is expected that the 13th monthly OASI pension will be paid out for the first time in 2026.

Introducing a 13th monthly OASI pension is projected to bring significant financial challenges.
The Swiss Federal Office of Social Insurance indicated the OASI system would run a deficit upon the introduction of the 13th monthly OASI pension and the deficit is expected to reach ₣7 billion annually by 2033. To address the additional financial needs from the outset, an increase in funding is necessary.

Upcoming Vote on BVG Reform (2nd Pillar)

Attention is now turning towards the upcoming vote in autumn concerning the reform of the occupational pension (BVG), another pillar of the Swiss pension system.

This reform is critical as it addresses the supplementary benefits that workers accumulate through their employment. The pension reform aims to adapt the occupational pension scheme to current economic and demographic trends, ensuring its viability and adequacy for future retirees.


This update on pension reform in Switzerland for 2024 is provided by WHP, Asinta’s Partner in the country. If you need support with employee benefits in Switzerland, please contact Asinta, and we will put you in touch with the local experts and WHP.