Swiss pension increases are coming on January 1, 2021. The Swiss Federal Council decided on these measures at its meeting this October. The minimum AHV / IV pension is now CHF 1,195 per month. At the same time, adjustments will be made in the contribution area, in the supplementary benefits and in the mandatory occupational benefits.
The 1st Pillar (State benefits) will increase next year to compensate for Swiss inflation. See table below.
|1st Pillar Benefits||Year 2020||Year 2021|
|Minimal State Pension (Salaries < 14’220)||CHF 14’220||CHF 14’340 (+ CHF 120)|
|Maximal State Pension (Salaries >= CHF 86’040)||CHF 28’440||CHF 28’680 (+ CHF 240)|
The 2nd Pillar (occupational benefits) marginal amounts rely on the figures (pensions) in the first pillar. Therefore, all the marginal amounts within the pension scheme are going to be increased by next year. More details are in this graphic.
For employees with a maximum salary (according to the legal minimum) the increase means higher contributions/costs. The same applies for the employer as the funding is 50% by the employer and 50% by the employee.
For employees with a lower salary than the salary ceiling of CHF 86,040, the marginal amount increase means lower contributions/costs.
This article about Swiss pension increases is by Weibel Hess & Partner, Asinta’s employee benefits consulting Partner in the country.