Occupational pension cover

Occupational pension cover

Occupational pension cover represents the second pillar of retirement provision in Switzerland. The benefits it provides should make it possible for people to maintain their accustomed standard of living in old age.

Insurance here is generally mandatory for all employees. The requirement is that an annual wage of at least CHF 21,150 or a monthly wage of at least CHF 1,762.50 is received from a single employer.

Individuals who meet the follow criteria are excluded from the mandatory insurance:

  • Not yet subject to AHV (the AHV contribution obligation begins on 1 January after the employee turns 17 years of age)
  • Already reached regular retirement age (women from the age of 64, men from the age of 65)
  • Gross income no higher than CHF 21,060 per year (for a shorter period of employment: no. of months times CHF 1,755)
  • Temporary employment contract of no more than three months
  • Position performed as a secondary form of employment and child carer is already covered by mandatory insurance for a main occupation or performs his or her main occupation on a self-employed basis

If the wage is higher than the joining threshold and none of the exceptions apply, you must join a pension scheme as an employer.

Enquire with the pension scheme of your industry association, your insurance company or your bank whether you can also add your child carer. Should this not be possible, contact Auffangeinrichtung BVG (the BVG National Substitute Pension Plan Foundation):

Stiftung Auffangeinrichtung BVG

Elias-Canetti-Strasse 2
8050 Zürich

The employer and employee generally both pay half of the contributions for the occupational pension cover, although a different arrangement in favour of the employee is permitted. The employee component is deducted from the employee's respective wage and transferred together with the employer component to the pension scheme.