Social security

The AHV is a general and compulsory national insurance scheme that covers all persons who live or work in Switzerland.

Adults aged 18 and over must be compulsorily insured with the AHV and IV:

Old Age and Survivors' Insurance (AHV)

In Switzerland, you are obliged to pay AHV  contributions until you reach retirement age so that you can receive an old-age pension at a later date.

The current retirement age is:

• 64 in women
• 65 in men

After the death of a relative, the AHV also pays a survivor's or orphan's pension.

Disability Insurance IV

The IV supports all people with a disability. It helps those affected to keep their jobs or find a new one. If neither is successful, the IV  pays a disability pension.

The pensions of AHV and IV are about high enough to cover the costs of the existentially important expenses. If this is not the case, you can request additional supplementary benefits.

Employees:

The contributions are divided between you and the employer. Your employer will cover at least half. Your share will be deducted directly from your salary and paid into the pension fund together with your employer's part.

If you are employed, the following amounts will be deducted from your gross salary each month:

6.225%            for AHV/IV/EO and ALV

5.625%            for wage parts over Fr.148'200

> Social Security Contributions Calculator

People with multiple jobs

In order to pay contributions, you must earn at least CHF 21,150 per year (as of 1 January 2018) from a single employer. If you have several jobs , but none of them earn as much, then you are not insured. In this case, please register directly with the Ausgleichskasse St.Gallen : Registration form

People who do not work:

If you are not working, you must register with the Ausgleichskasse St.Gallen  Compensation Office on your own responsibility. 

You owe the full contributions, but at least the specified minimum contribution (478 francs per year; As of 1.1.2018). If you do not pay contributions, this can lead to a reduction in benefits (for example, in the case of old-age pensions) at a later date.

Register directly with the Ausgleichskasse St.Gallen  Compensation Office: Registration form

Self-employed:

If you are self-employed, you must register with the Ausgleichskasse St.Gallen on your own responsibility. The Ausgleichskasse St.Gallen does not act on its own initiative. Further information can be found here:

> Information for the self-employed

Occupational pensions are a form of protection for you and your relatives. In old age, in the event of disability or death, the 2nd pillar is intended to make it possible to continue the accustomed standard of living in an appropriate manner.

To do this, you pay part of your salary into a pension fund, and you receive an additional retirement pension from the pension fund after retirement. 

You are compulsorily insured if you meet the following conditions:

• You are subject to AHV contributions, i.e. you are already insured in the first pillar
• You are at least 17 years old and have not yet reached the statutory retirement age
• Your annual salary is more than CHF 21,510 (as of 2022)

You are not compulsorily insured if:

• You are not employed
• Your gross annual salary is less than CHF 21,510
• are self-employed
• Your employment contract is valid for a maximum of 3 months

You can voluntarily join a pension fund and pay contributions. 

If, in addition to AHV and pension fund, you want to save even more for a comfortable life in old age, you can invest your money in the so-called 3rd pillar with an insurance company or a bank. You can deduct these amounts from your taxes. 

It may happen that the pension benefits are not enough for you to cover your living expenses in old age. This is typically the case for people who have not worked  or have earned too little money to invest in the 2nd or 3rd pillar.

Often, this also affects people who are dependent on care in old age and live in a retirement or nursing home. The costs for this often exceed the financial means of retirees. 

In these cases, you are entitled to supplementary benefits (EL). These can make up the difference between expenditure and insufficient income.