by On 12 October 2022, Switzerland’s Federal Council announced an increase in state pensions from 1 January 2023 by 2.5%. Photo by Magda Ehlers on Pexels.comThe minimum pension with rise from CHF 1,195 to CHF 1,225 per month, while the maximum amount will rise from CHF 2,390 to CHF 2,450 (US$ 2,450). The amount paid in state pension in Switzerland is related to the level of contribution, which relates to salary level and the number years. Swiss state pensions are adjusted every two years unless annual inflation exceeds 4%. The level of the increase is based on a blend of consumer inflation and wage increases. This year inflation is expected to be 3% and wage increases 2%. The CHF 1.4 billion cost of the increase will be born mainly by Switzerland’s employees and employers. An extra
Topics:
Investec considers the following as important: Editor's Choice, Pension Switzerland, Personal finance
This could be interesting, too:
Investec writes Swiss to vote on tenancy laws this weekend
Investec writes Switzerland ranked second in digital competitiveness
Investec writes Swiss wages set to rise in 2025
Investec writes Federal Council hopes to boost savings with pension change
On 12 October 2022, Switzerland’s Federal Council announced an increase in state pensions from 1 January 2023 by 2.5%.
The minimum pension with rise from CHF 1,195 to CHF 1,225 per month, while the maximum amount will rise from CHF 2,390 to CHF 2,450 (US$ 2,450). The amount paid in state pension in Switzerland is related to the level of contribution, which relates to salary level and the number years.
Swiss state pensions are adjusted every two years unless annual inflation exceeds 4%. The level of the increase is based on a blend of consumer inflation and wage increases. This year inflation is expected to be 3% and wage increases 2%.
The CHF 1.4 billion cost of the increase will be born mainly by Switzerland’s employees and employers. An extra CHF 1.2 billion will be funded by the state pension fund supported by payroll taxes. The remaining CHF 0.2 billion will be covered by the federal government.
Switzerland has a pension system made up of three layers. The first is state pensions. The second is compulsory work related savings and the third is an optional third pillar of tax advantaged savings. The second and third elements (pillars) supplement the first.
More on this:
Government press release (in French) – Take a 5 minute French test now
For more stories like this on Switzerland follow us on Facebook and Twitter.