Question 1

What are AHV/AVS contributions in Switzerland and how much do I pay?

Accepted Answer

AHV (Alters und Hinterlassenenversicherung) is Switzerland's firstpillar state pension and social insurance scheme. The combined AHV/IV/EO contribution rate is 10.6% of gross salary. Employees pay half (5.3%) deducted from their paycheck; employers pay the other half. Selfemployed individuals pay the full rate on their net earnings, with a slightly lower effective rate on lower incomes.

AHV covers retirement pension, survivors' benefits, and disability insurance. The retirement pension is paid

Question 2

How does Pillar 3a work and how much can I deduct in 2024?

Accepted Answer

Pillar 3a is Switzerland's voluntary, taxadvantaged private pension. Contributions are fully deductible from taxable income at federal and cantonal level. For 2024, the maximum deduction is CHF 7,056 for employees covered by Pillar 2 (occupational pension), and CHF 35,280 (up to 20% of net earned income) for selfemployed persons without Pillar 2.

Money in a 3a account grows taxfree — no wealth tax on the balance, no income tax on interest or returns while it accumulates. You cannot access it fr

Question 3

How is Pillar 2 (BVG occupational pension) taxed in Switzerland?

Accepted Answer

Pillar 2 is the mandatory occupational pension in Switzerland, covering employees earning above CHF 22,050/year. Employer and employee contributions are split roughly equally — combined contributions range from 7% to 18%+ of the coordinated salary depending on age. Contributions are not subject to income tax while being made.

At retirement, you typically have the choice of taking your pension capital as a lifelong annuity, a lump sum, or a combination. Annuity payments are taxed as ordinary inc

Categories

Pension & Pillars

What are AHV/AVS contributions in Switzerland and how much do I pay?

How does Pillar 3a work and how much can I deduct in 2024?

How is Pillar 2 (BVG occupational pension) taxed in Switzerland?