Purpose of AVS
The Old Age and Survivors Insurance (AVS) system is the main pillar of the pension system in Switzerland. It aims to provide a pension for retirees and financially support survivors in the event of the death of a spouse or parent. The AVS is intended to cover basic living needs after retirement. If pensions are too low, supplementary benefits (PC) may be granted.
Who contributes to the AVS?
Everyone who lives or works in Switzerland is obliged to pay AVS contributions.
1. Employees and self-employed
Anyone engaged in gainful employment in Switzerland (including cross-border workers and self-employed individuals) must contribute to the AVS from January 1st of the year following their 17th birthday.
- Contributions are deducted directly from gross salary and shared between employer and employee. In addition, the employer is responsible for deducting and paying social security contributions.
- Self-employed workers are also subject to AHV, but must pay their own contributions in full. Rates vary according to income.
2. Persons without gainful employment
People with no earned income (students, pensioners, homemakers, etc.) must also pay AVS contributions.
- They are required to pay minimum contributions, calculated on the basis of a fictitious incomeunless their spouse contributes at least twice the minimum annual contribution.
3. Retirees who continue to work
- People who have reached retirement age (64 for women, 65 for men) but continue to work are still subject to AHV contributions.
- However, a monthly deductible of CHF 1,400 (CHF 16,800 per year) applies, which means that no contributions are deducted from this portion of income.
4. Special cases
Swiss nationals, as well as those from EU or EFTA member states residing in a country outside these zones, can contribute to the AVS on a voluntary basis, under certain conditions. This option allows them to avoid a reduction in their pension due to contribution gaps.
Amount of AHV contributions
- Insurance
- Payer
- Percentage
- Old-age and survivors's insurance (OASI)
- Employee
- Employer
- Independent
- 4.35%
- 4.35%
- 8.1%
- Disability insurance (DI)
- Employee
- Employer
- Independent
- 0.7%
- 0.7%
- 1.4%
- APG
- Employee
- Employer
- Independent
- 0.25%
- 0.25%
- 0.5%
Employers must deduct 5.3% of the gross salary from their employees for their AVS contribution and add their own contribution of 5.3%, bringing the total to 10.6%. This amount is paid to the AVS compensation fund, along with the unemployment insurance contribution and an administrative fee, which is solely borne by the employer.
People whose employers are not obliged to contribute, such as embassy employees, generally have to pay these contributions themselves at the same rate as employers and employees.
How do I calculate my AHV benefits?
The amount of the AHV pension is calculated on the basis of annual income subject to contributions. These incomes are recorded by the compensation funds on a individual account (IA) for each policyholder.
Employers are obliged to declare the contributions paid by their employees to the compensation fund each year. For the self-employed and persons not in gainful employment, the compensation fund records the income corresponding to the contributions paid.
If a person has contributed to several compensation funds, an individual account is opened with each of them. To check that all contributions have been properly recorded, or to ensure that there are no gaps, the insured person can request a individual account statement.
OASI benefits
Entitlement and claim
When a person reaches retirement age (65 for men and progressively 65 for women by 2028), he or she must make a official request with the compensation fund to receive his AVS pension.
Pension calculation
The calculation of the AVS pension is based on two criteria:
- Length of contribution : A full pension is granted after 44 years (men) and 43 years (women) of contributions. Gaps reduce the pension proportionally.
- Determining average annual income (DAI) : It is calculated on the basis of contributory earnings and adjusted according to various factors.
People who have interrupted their contributions (periods abroad, studies, periods of unemployment) suffer a reduction in their pension, unless they have been able to buy back the missing years (within certain limits).
Insured individuals who have paid AVS contributions between 18 and 20 years old have the option to count up to 3 years of contributions to compensate for any future missing contributions.
Pension for couples and bonuses
For couples, each receives his or her own pension, but the total is capped at 150 % of the maximum pension (45'360 per year by 2025).
However, bonuses for educational tasks and caregiving can increase the pension for individuals who have raised children or cared for a dependent in need of assistance.
Survivors' pensions
The AVS provides benefits for survivors:
- Type of annuity
- Conditions
- Percentage
- Widow's/widower's pension
- Paid for life if the spouse has children or is over 45 and has been married for at least 5 years.
- 80% of the deceased's annuity* (in euros)
- Orphan's pension
- Paid up to age 18, or age 25 if continuing education.
- 40% of the deceased's pension
*If a person is entitled to a widow's/widower's pension AND an old-age or disability pension at the same time, only the higher pension will be granted.
Old-age pension
Old-age pensions are calculated on the basis of the average annual pensionable income (AAPI). However, to qualify for the maximum pension, insured income is capped at CHF 90,720 in 2025. However, contributions will still be deducted from full income.
- Type of annuity
- Conditions
- Percentage
- Old-age pension
- Have reached the reference age (max. early retirement: 2 years before), and have paid contributions for at least one year.
- Depends on length of contribution and RAMD*.
- Orphan's pension
- Paid up to age 18, or age 25 if continuing education.
- 40% pensioner's pension
Anticipation of AHV pension
You can take your early retirement to 2 years before the legal retirement age (from 63 for men and 62 for women). The insured person will have to continue contributing to the AVS/AI/APG until the reference age. This entails a permanent reduction of the annuity :
- Anticipation period
- Reduction
- 6 months
- 1 year
- 1 year and 6 months
- 2 years
- - 3.4%
- - 6.8%
- - 10.2 %
- - 13.6 %
Deferment of annuity
Deferment of the OASI pension allows its payment to be deferred until 5 years after the reference age,with a permanent increase in compensation. It can be interrupted at any time to start receiving the annuity.
- Duration of postponement
- Increase
- 1 year
- 2 years
- 3 years
- 4 years
- 5 years
- + 5.2 %
- + 10.8 %
- + 17.1 %
- + 24 %
- + 31.5 %
Frequently Asked Questions
When do I have to pay AHV contributions in Switzerland?
Dès le 1er janvier suivant les 17 ans pour les personnes exerçant une activité lucrative. Dès 20 ans pour celles sans activité lucrative.
At what salary level does an employer contribute to AVS?
From the first franc, except for temporary jobs with the same employer below 2,300 CHF/year (unless exceptions apply).
How old do you have to be to contribute to the AHV?
Until the statutory retirement age (65 years), and if engaging in gainful employment, for up to an additional 5 years thereafter.
What is the AHV contribution rate for employees?
10.6% of the gross salary, split into 5.3% for the employee and 5.3% for the employer.
Do retirees who are still working have to contribute?
Yes, but they benefit from a franchise of 1,400 CHF/month (16,800 CHF/year). Beyond this amount, the standard rate of 10.6% applies.
