Who pays BVG contributions in Switzerland?
In Switzerland, affiliation to the BVG/LPP (also called 2nd pillar or occupational pension) is mandatory for all employees subject to the AVS as soon as their annual income exceeds CHF 22,680 in 2025. Insurance starts from January 1 following the completion of 17 years of age for death and disability coverage, and from January 1 after turning 24 for the build-up of retirement savings.
Self-employed individuals are not required to contribute to the BVG, but they can voluntarily insure themselves with a pension institution. In practice, many instead choose to strengthen their coverage through a 3rd pillar.
Table of BVG contributions
- Age range
- (as at 31th Dec. of birth year)
- Total contribution
- (% of coordinated salary)
- Including old-age pension
- Maximum contribution for employees¹
- 18 - 24 years old
1.6 % (risk only)
0 %
50 %
- 25 - 34 years old
50 %
- 35 - 44 years old
50 %
- 45 - 54 years old
50 %
- 55 - 65 years old
50 %
¹ Employers are required to contribute a minimum of 50% to the employee's LPP. Some employers offer more attractive conditions.
How are BVG contributions calculated?
- Minimum wage to be insured: CHF 22,680 (2025)
- Maximum AHV salary taken into account: CHF 90,720
- Maximum insured salary (after coordination deduction): CHF 64,260
- Minimum insured salary: CHF 3,780
To calculate the BVG contribution, you must:
- 1. Start with the AVS annual salary (gross salary subject to social security contributions).
- 2. Subtract the coordination deduction of CHF 26,460.
- 3. This is how you get your insured salary.
- 4. Apply the contribution rate according to age (see table above).
Practical example (2025)
- Gross annual salary: CHF 70,000
- Coordination deduction: CHF 26,460
- Salary guaranteed: CHF 43,540
- Contribution rate (40 years): 13.1 %
- Total annual contribution: 43,540 × 13.1 % = 5,704 CHF
- Distribution: CHF 2,852 paid by the employer and CHF 2,852 by the employee (minimum).
This mechanism is used to finance retirement savings, death and disability insurance, as well as administrative costs.
Frequently asked questions
In 2025, any employee whose annual income exceeds CHF 22,680 is compulsorily affiliated to the BVG.
The AVS salary is capped at CHF 90,720. Above this amount, only the portion up to this ceiling is insured under the compulsory domain.
It is a fixed amount (CHF 26,460 in 2025) deducted from the AVS salary to calculate the insured salary. It reflects the portion already covered by the AVS (1st pillar).
Simplified formula:
- (AHV salary - 26,460) = Insured salary
- Insured salary × age-based contribution rate = total contribution
This contribution is then shared between employer and employee (at least 50/50).
The LPP contribution rate in 2025 (including risk) is:
25-34 years: 9.4 %
35-44 years: 13.1 %
45-54 years: 18.8 %
55-65 years (M) / 64 years (F) : 20.2 %
No, membership is not compulsory. However, they can take out voluntary insurance or use the 3rd pillar to supplement their pension provision.
