From what salary is the pension fund mandatory?

The BVG entry threshold is CHF 22,680 annual salary in 2025. Those earning less are not compulsorily insured but can join voluntarily. With multiple employers, salaries are not aggregated -- each employment relationship is assessed separately.

Why are older employees more expensive for employers?

Age credits increase from 7% (25-34 years) to 18% (55-65 years). With a coordinated salary of CHF 60,000 this means: a 30-year-old costs CHF 2,100/year in pension fund contributions, a 60-year-old CHF 5,400/year. This difference is a known factor in recruitment.

Can I voluntarily pay into the pension fund?

Yes, if there is a pension gap. The purchase is fully deductible from taxable income and thus one of the most effective tax optimisation instruments. After a purchase, a 3-year lock-in period applies for capital withdrawals. The tax at payout is calculated with the capital withdrawal tax calculator.

How are pension fund and Pillar 3a related?

Those who are affiliated with a pension fund can use the 'small' Pillar 3a (max. CHF 7,258/year). Without a pension fund, the 'large' Pillar 3a applies (max. CHF 36,288/year). Both pension forms reduce taxable income.

Are pension fund contributions deducted from taxable income?

Yes. Employee pension fund contributions are automatically deducted from taxable income. They appear on the salary statement and directly reduce income tax.

Calculate Pension Fund Contributions

Calculate the mandatory pension fund contributions under BVG (2nd pillar).

The pension fund contribution calculator computes the mandatory pension fund contributions (2nd pillar) by age and salary. It shows the coordinated salary, the age credit and the split between employer and employee -- but not supplementary benefits of individual pension funds.

How is the coordinated salary calculated?

Pension fund contributions are not calculated on the full salary but on the coordinated salary. This is derived from the annual salary minus the coordination deduction (2025/2026: CHF 26,460). The maximum coordinated salary is CHF 64,260 (upper limit CHF 90,720 minus coordination deduction). Example: With a gross salary of CHF 85,000, the coordinated salary is CHF 58,540. Age credits are calculated on this amount. The total OASI contributions, by contrast, are levied on the full gross salary.

Pension fund age credits by age

The statutory minimum age credit rates increase with age: - 25-34 years: 7% of coordinated salary - 35-44 years: 10% - 45-54 years: 15% - 55-65 years: 18% Employer and employee each contribute at least half. Many pension funds offer more generous plans with higher credits and lower coordination deductions. Pension fund contributions are among the largest items in payroll costs.

Pension fund purchase as a tax instrument

Voluntary purchases into the pension fund are possible if there is a pension gap. The purchase amount is fully deductible from taxable income. Note: After a purchase, a 3-year lock-in period applies during which no capital withdrawal may be made. At payout, capital withdrawal tax is due.

Frequently Asked Questions

From what salary is the pension fund mandatory?+
Why are older employees more expensive for employers?+
Can I voluntarily pay into the pension fund?+
How are pension fund and Pillar 3a related?+
Are pension fund contributions deducted from taxable income?+

How is the coordinated salary calculated?

Pension fund age credits by age