Occupational pension cover

Occupational pension cover

The second pillar (occupational pension - BVG) is mandatory for those with a gross wage of more than CHF 21,060 per year or CHF 1,755 per month.

Occupational pension cover is not mandatory for employees for whom one of the following applies:

  • 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 household helper is already covered by mandatory insurance for a full-time position or performs his or her main work on a self-employed basis

If none of the above applies, you as an employer must join a pension scheme. If you are unable to join the pension scheme of your industry association, your insurance company or your bank, register with Stiftung Auffangeinrichtung BVG:

Stiftung Auffangeinrichtung BVG
Elias-Canetti-Strasse 2
8050 Zürich

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