On 21 September 2018, the Federal Council decided to increase AHV and IV pensions from 1 January 2019. A review is conducted every two years to determine based on the pension index (a hybrid index of wages of prices) if any changes are needed. The AHV pension serves as a basis for many threshold values in the Swiss social insurance system. Below is an overview of the changes and their impact.
Background
AHV/IV pensions will increase slightly from 1 January 2019. To ensure that AHV pensions reflect purchasing power, the indices for wages and prices are given equal weighting. In the past two years, the rise in wages has moderately outstripped the drop in prices. As a result, pensions will raise marginally. The impact of this increase is set out in more detail in the following table.
Changes to AHV/IV
AHV/IV |
Value up to 31.12.2018 |
Value from 01.01.2019 |
Minimum AHV/IV pension |
CHF 1, 175 |
CHF 1, 185 |
Maximum AHV/IV pension |
CHF 2, 350 |
CHF 2, 370 |
Maximum pension married couple |
CHF 3, 525 |
CHF 3, 555 |
Helpless allowance AHV Low (at home) Medium High |
CHF 235 CHF 588 CHF 940 |
CHF 237 CHF 593 CHF 948 |
Helpless allowance IV (home) Low Medium High |
CHF 118 CHF 294 CHF 470 |
CHF 119 CHF 296 CHF 474 |
Helpless allowance IV (home) Low Medium High |
CHF 470 CHF 1, 175 CHF 1, 880 |
CHF 474 CHF 1, 185 CHF 1, 896 |
Supplementary AHV/IV benefits For a single person For a married couple For orphans |
CHF 19, 290 CHF 28, 935 CHF 10, 080 |
CHF 19, 450 CHF 29, 175 CHF 10, 170 |
The helplessness allowance, carer’s allowance and supplement for intensive home-based care for minors will be adjusted. Annual minimum AHV contributions will increase slightly as a result.
Impact on family allowances
The increase in AHV/IV pensions will slightly raise the minimum income requirement for entitlement for family allowances. The same applies to the maximum income that a child may earn while remaining entitled to education allowance.
Family allowance |
Value up to 31.12.2018 |
Value from 01.01.2019 |
Minimum income one parent |
CHF 7, 050 |
CHF 7, 110 |
Maximum income child |
CHF 28, 200 |
CHF 28, 440 |
Impact on occupational pensions
All threshold amounts for occupational pensions will change. These thresholds are calculated as percentages of the maximum annual AHV pension
BVG |
Value up to 31.12.2018 |
Value from 01.01.2019 |
Upper limit annual salary |
CHF 84, 600 |
CHF 85, 320 |
Coordination deduction |
CHF 24, 675 |
CHF 24, 885 |
Minimum annual salary |
CHF 21, 150 |
CHF 21, 330 |
Minimum coordinated salary |
CHF 3, 525 |
CHF 3, 555 |
Maximum BVG annual salary |
CHF 846, 000 |
CHF 853, 200 |
Consequences for Pillar 3
Annual tax relief for contributions to recognised pension schemes is calculated as a percentage of the maximum annual AHV pension. This too will have to be adjusted from 1 January 2019. Thresholds for the digressive scale for contributions by self-employed individuals will also be revised upwards.
Pillar 3a |
Value up to 31.12.2018 |
Value from 01.01.2019 |
BVG-insured |
CHF 6, 768 |
CHF 6, 826 |
Not BVG-insured |
CHF 33, 840 |
CHF 34, 128 |
In short
- The Federal Council has decided to moderately increase AHV and IV pensions from 1/1/2019.
- This increase has a wide-ranging impact on various threshold values in the security insurance system.
- Payroll staff will have to ensure that the new conditions are incorporated in their payroll software.