Swiss Approve Pension Reform AHV 21

Swiss Approved Pension Reform AHV 21On September 25, 2022, the Swiss approved pension reform AHV 21 and secured financing for the country’s pillar I social security until 2030. Both the amendment to the AHV Act and the federal resolution on additional funding for AHV through an increase in value-added tax were approved. The effective date is expected to be January 1, 2024.

Multinational employers and their employee benefits consultants should be aware of the following points in the legislation:

  • The term ‘retirement age’ is replaced by ‘reference age.’
  • The reference age for women increases gradually by three months per year from ages 64 to 65 to the same reference age as men. The gradual increase in women’s reference age will begin in 2025.
  • Compensatory measures for women will be introduced for the transition generation with a lifetime allowance (cohorts with vintage 1961 to 1969 are considered as the transition generation). If the reform gets enacted in 2024, the compensatory measures will also come into force in 2025.
  • Pension withdrawal flexibility now includes partial pension early withdrawal and partial pension deferral.
  • There are incentives to continue gainful employment after the reference age of 65.
  • The waiting period for entitlement to AHV helplessness allowance is now shorter.
  • The value-added tax (VAT) increases by 0.40%.


WHP, Asinta’s employee benefits Partner in Switzerland, provided this article about the Swiss approving pension reform AHV 21.