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.

This article: