How high are the contributions to the pension fund in Switzerland? And what do employees and employers pay? We provide you with the most important information on pension fund contributions and show you how to calculate the contributions.
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What is the pension fund contribution?
Employees in Switzerland use their BVG contributions (also known colloquially as pension fund contributions) to save money for the normal retirement age. By law, the employer must pay at least half of the pension fund contributions (Art. 66 BVG). Your employer deducts the contributions directly from your gross salary. Some employers voluntarily pay more in order to strengthen their employees’ pension provision.
A distinction is made between the mandatory and extra-mandatory BVG contributions. There are only statutory requirements for the mandatory part.
What is the minimum income for the pension fund?
The minimum income for joining a pension fund is CHF 22,050 in 2024. The minimum income will increase to CHF 22,680 in 2025. This applies if you receive this minimum salary from a single employer.
Pension fund contributions by age at a glance
The table below shows the statutory pension fund contributions, broken down by age.
| From 1 January to 31 December in the year in which you celebrate the birthday listed here: | Savings contribution | Your maximum share |
| 25. – 34. | 7 % | 3.5 % |
| 35. – 44. | 10 % | 5 % |
| 45. – 54. | 15 % | 7.5 % |
| 55. – 65. | 18 % | 9 % |
How can I calculate the pension fund contribution?
BVG contributions are calculated on the basis of the insured salary. The insured salary is not only capped at the lower end, but also at the upper end. The maximum insured gross salary in 2024 is CHF 88,200. Salaries that are higher are not taken into account in the mandatory occupational benefit scheme.
To calculate your insured salary, you must deduct the coordination deduction from your gross salary. The result is your insured salary. Now multiply the insured salary by the savings contribution applicable to you as a decimal figure (e.g. instead of 3.5 %, use 0.035). Here is an example:
| Only compulsory insurance | |
| Annual salary | CHF 95,000 |
| Maximum BVG mandatory | CHF 88’200 |
| Coordination deduction | CHF 25’725 |
| Insured salary | CHF 62’475 |
| Employee contribution rate | 3.5 % |
| Annual employee contribution | CHF 2’186.60 |
| Employer contribution rate | 3.5 % |
| Annual employer contribution | CHF 2’186.60 |
| Total annual savings contribution | CHF 4’373.20 |
| per month | CHF 364.40 |
How can a voluntary purchase improve my pension provision?
If you want to improve your pension provision, you can do so by making a voluntary purchase into the pension fund. A purchase closes potential pension gaps that may arise due to interruptions in your working life or a change of job, for example. You can also save tax by making a purchase.
In our other articles, you can find out when voluntary buy-ins are most worthwhile and how you can calculate your pension fund buy-in potential.
What happens in the event of disability?
After the occurrence of a case of disability due to illness or accident and after a certain waiting period (usually 6 months), the insurance company or pension fund takes over the payment of the savings and risk contributions.
The insured person is released from the premium burden. However, the pension plan will still be continued. The amount of the premium waiver is based on the degree of disability and the degree of incapacity for work of the insured person.
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