Occupational and state pension
AHV and BVG: your first two Swiss pillars, in plain English.
In Switzerland you have a three-pillar approach towards saving for your retirement. Pillar 1 is AHV (German) / OASI (English). Pillar 2 is your BVG, the occupational pension. Pillar 3 is your 3a/3b.
Pillar 1
AHV (German) · OASI (English)
State pension
Compulsory for everyone working in Switzerland
Pillar 2
BVG · Occupational pension
Company pension
Compulsory above CHF 22,680 of yearly earnings
Pillar 3
Pillar 3a · Pillar 3b
Private provision
Voluntary — and tax deductible
Pillar 1
Old Age and Survivor's Insurance — the state pension.
This part of the pension is known as your Old Age and Survivor's Insurance (OASI), or state pension. It is compulsory for every person working in Switzerland to be registered for OASI and to contribute to this pension on a monthly basis.
Contributions are 5.3% deducted from your monthly salary — 4.35% for AHV, 0.7% for IV and 0.25% for EO — and your employer contributes the same percentage again.
OASI works on a defined benefit scheme, meaning benefits are calculated on the time you have been contributing to the fund rather than on your actual contributions. In Switzerland a full term is seen from the age of 21 until retirement at 65.
5.3%
Your contribution
AHV, IV and EO combined
5.3%
Employer contribution
Matched, monthly
21 → 65
Full term
Defined benefit basis
Benefits under OASI
Assuming you have paid OASI contributions without interruption:
| Average annual income did not exceed CHF 15,120 p.a. | CHF 1,260 / month |
|---|---|
| Average annual income of at least CHF 90,720 p.a. | CHF 2,520 / month |
| Married couplesWhere the benefit does not exceed 150% of a single pension | CHF 3,780 / month |
Pillar 2
The occupational pension — where the detail matters most.
This part of the pension is known as your occupational pension, or company pension. The moment your yearly earnings are more than CHF 22,680, this part also becomes compulsory. You and your employer contribute to it, and contributions are automatically deducted from your pay sheet or salary statement.
This pension works as a defined contribution scheme. Its value is determined by the contributions you and your employer make, plus the interest received during the term.
Retirement age for this pension can start at 58 or 60 — but doing so reduces your benefit considerably.
Your conversion rate turns your Pillar 2 capital into an annual income. It has been falling — which is the single most important number in your occupational pension.
A few years back
Typical at age 65 today
Possible by your retirement
Benefits in short
- You receive risk insurance benefits — life and disability cover.
- Orphan and widow pensions are also included.
- At retirement you have the option to convert your pension into a monthly income or take the lump sum.
- Your conversion rate is used to calculate your annual income: less if you retire early, more if you retire later. At age 65 the rate for many companies is around 5.8% — so for every CHF 1 million you hold you receive an income of about CHF 58,000 p.a. A few years back this rate was 9%; it may reduce to 4% by retirement.
- Accident insurance (UVG) and daily sickness benefits (KTG) are also included under this topic.
Next
And then there is Pillar 3.
Pillars 1 and 2 are largely decided for you. Pillar 3 is the part you control — voluntary, fully tax deductible, and the usual place to repair a shortfall that the first two pillars leave behind.
Questions
Common questions
- How much is the Swiss state pension in 2026?
A full contribution record pays between CHF 1,260 and CHF 2,520 a month for a single person, depending on your average income over your working life. A married couple's two pensions together are capped at CHF 3,780 a month, which is 150% of a single maximum pension.
- How much is deducted from my salary for AHV?
5.3% of your gross salary covers the three first-pillar schemes together: 4.35% for AHV (old age and survivors), 0.7% for IV (disability) and 0.25% for EO (loss of earnings). Your employer pays the same again, so 10.6% in total reaches the system. Unemployment insurance and occupational pension contributions are deducted separately.
- What is the 13th AHV pension and when is it paid?
From December 2026 everyone drawing an AHV old-age pension receives a thirteenth payment, equal to one twelfth of the total old-age pension paid out over the year. It is paid once a year in December and does not change the BVG thresholds.
- When does the occupational pension (BVG) become compulsory?
Once your annual salary exceeds CHF 22,680. The pension is then calculated on your coordinated salary — your gross salary less a coordination deduction of CHF 26,460 — up to an insured ceiling of CHF 90,720, with a minimum coordinated salary of CHF 3,780.
- What conversion rate turns my BVG capital into a pension?
The statutory minimum is 6.8% at reference age 65, applied to the mandatory portion of your savings. Many funds operate an enveloping plan covering both mandatory and above-mandatory savings, where the overall rate applied to your total capital is lower — often nearer 5% to 6% — while still meeting the legal minimum on the mandatory part. Your own pension certificate states the rate that applies to you, which is why it is the first document BCS asks for.
Source: FSIO, old-age provision in occupational benefits plans
Figures are the scale in force for 2026 and are checked against the federal sources linked above. They are general information, not personal advice — what applies to you depends on your canton, municipality, provider and circumstances.
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