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Changes in social security contributions and the second and third pillars starting 2021

Updated on October 26, 2022

2020 has been a turbulent year. The Corona virus still dominates the media landscape, which is why many other news items have taken a back seat. We are therefore pleased to summarize here some important innovations in the pension world, which will come into force on January 1, 2021.

  1. Increase of the EO rate in 2021
    On September 27, 2020, the introduction of paternity leave was approved by referendum. As the compensation for these two weeks will be paid via the EO, this social security contribution will increase by 0.05% and will now be 0.50% instead of 0.45%. As this contribution, as well as the AHV and IV contributions, are paid in equal parts by the employer and the employees, this means an increase of 0.025% for both sides. The amount of the AHV/IV/EO deductions will thus increase to 10.6% of the gross salary as of January 1, 2021 
  2. Increase in the AHV/IV minimum pension as of 2021
    Due to the current price and salary development, the AHV/IV minimum pension will be increased by CHF 10 per month as of January 1, 2021. 
  3. Increase in BVG entry threshold as of 2021 
    The increase in the AHV/IV minimum pension mentioned in point 2 also affects the entry threshold for the 2nd pillar. As of January 1, 2021, the BVG insurance obligation will only apply from an AHV annual salary of CHF 21,510, whereas in 2020 this was still CHF 21,330. The coordination deduction also increases by CHF 210 to CHF 25,095. The maximum insured salary is now CHF 86,040, which corresponds to an increase of CHF 720.
  4. Maximum amount for pillar 3a in 2021
    There will also be changes to the maximum amount for private pension provision in 2021. For insured persons with a pension fund, a new maximum amount of CHF 6,883 will apply from January 1, which corresponds to an increase of CHF 57.- compared to 2020. For insured persons without a pension fund, the maximum amount will continue to be a maximum of 20% of net income, but now a maximum of CHF 34,416, which is CHF 288 more than in 2020.
Oliver Diggelmann

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