How much does the 13th AHV pension cost per year and when does the payment start?

The 13th AHV pension will cost around 4.2 billion francs per year, with the first payment scheduled for December 2026.

What will be the immediate impact on a monthly net salary if the salary contribution for AHV/IV/EO is increased?

An increase in salary contributions for AHV/IV/EO will reduce the immediate monthly net salary of cross-border workers, in proportion to their income. For example, if the tax rate goes from 5.3% to 6%, a worker with a gross salary of CHF 5,000 will see his net salary reduced by about CHF 70 per month (based on a 0.7% increase).

How does the calculation of the 13th AHV pension work for Italian cross-border commuters working in Switzerland?

The 13th AHV pension will be calculated on the basis of the contributions paid during your working career in Switzerland. For cross-border commuters, the pension will depend on the contributions paid in both Switzerland and Italy, but only Swiss contributions will be taken into account for the calculation of the Swiss part. The payment will take place starting from December 2026.

Do cross-border commuters also have to pay AHV contributions in Italy in addition to Swiss ones?

No, cross-border commuters do not have to pay AHV contributions in Italy if they are already insured in Switzerland. However, if they have periods of work in Italy, these are taken into account for the calculation of the Italian pension, but do not overlap with the Swiss contributions. Switzerland and Italy have bilateral agreements to avoid double contributions.

What happens if a cross-border commuter changes jobs during the year in Switzerland? Does anything change for the 13th AHV?

No, the 13th AHV is based on the contributions paid during the calendar year, regardless of the number of employers. Each employer withholds the AHV rate (currently 5.3%) from the gross salary and pays it to the Swiss authorities. The calculation of the final pension will take into account the total sum of the annual contributions.

13th AVS Pension: Salary or VAT? Clash over funding (cross-border guide)

Di Valerie Linc · Published on 21 February 2026 · Updated on 19 February 2026

The Council of States' Commission rejects a temporary VAT increase, pushing for a mixed financing model that will also affect salary contributions. Here's what it means for cross-border workers.

Context

TL;DR

13th AVS pension payment to cost 4.2 billion francs annually from 2026.
Social Security Commission proposes mixed financing model.
Impact on cross-border workers' paychecks debated.

Key facts

Cost: 4.2 billion francs annually starting in 2026.
VAT Increase: 0.7% increase proposed by Federal Council and National Council.
Current AVS Rate: 5.3% employee deduction for AVS/AI/IPG.
First Payment: December 2026.
Voting Date: March 3, 2024.
Commission's Proposal: Increase in salary contributions and VAT adjustment.
Impact on Cross-Border Workers: Direct reduction in net monthly salary with increased contributions.
Parliament's Services Opinion: Temporary VAT increase offers no long-term perspective.

The path to financing the 13th AVS pension payment, set to cost around 4.2 billion francs annually starting in 2026, is becoming increasingly complex. The Social Security and Health Commission of the Council of States has put the brakes on a quick fix, proposing a mixed financing model that will also have a direct impact on the paychecks of cross-border workers. The commission intends to combine an increase in salary contributions with an adjustment to VAT.

…

Operational details

For the thousands of cross-border workers who cross the Brogeda, Ponte Tresa, or Gaggiolo borders daily, the difference between the two options is substantial. An increase in salary contributions would translate into an immediate and tangible reduction in their net monthly salary. Currently, the employee's deduction for AVS/AI/IPG is 5.3%. The commission's proposal would mean an increase in this rate, reducing the amount that reaches the worker's bank account.

The Two Financing Paths

Increase in salary contributions: A direct and certain impact on the paycheck. Every month, a larger portion of the gross salary would be withheld to finance the pension system. This affects all employees, including cross-border workers, in proportion to their income.
VAT increase: An indirect and variable impact. The 0.7% increase would apply to goods and services purchased in Switzerland. For a cross-border worker, this would mean higher costs for lunch, fuel, or any shopping done in Ticino, but it would not directly affect their credited salary. The additional expense would therefore depend on their spending habits within Switzerland.

The Council of States' commission seems inclined not to place the entire burden on consumption but to distribute it also on earned income. The final decision will now rest with the two chambers of Parliament, which must find a compromise to avoid further delays in implementing a reform awaited by thousands of pensioners.

Key points

The debate is far from over, and the coming months will be decisive in defining the details of this complex financial maneuver. The matter will return to the full Council of States and, if disagreements persist, back to the National Council. The only certainty at the moment is the date of the first payment of the 13th AVS: December 2026. A solution must be found and implemented by then.

What to do now?

💡 For cross-border workers, this period of uncertainty makes it even more important to have a clear understanding of their salary and its various components. Understanding how a variation of a few tenths of a percentage point in social contributions can alter the final net pay is crucial for proper personal and family financial planning.

With such a heated debate between Bern and the Cantons, understanding the impact of a potential increase in salary contributions is essential for budgeting. Using precise tools to simulate these variations is the best way to avoid being caught unprepared. Our net salary calculator is constantly updated to reflect current regulations and allows you to see how any changes will affect your monthly income.

(Source: RSI, 13.09.2024)

Frequently Asked Questions

How much does the 13th AHV pension cost per year and when does the payment start?: The 13th AHV pension will cost around 4.2 billion francs per year, with the first payment scheduled for December 2026.
What will be the immediate impact on a monthly net salary if the salary contribution for AHV/IV/EO is increased?: An increase in salary contributions for AHV/IV/EO will reduce the immediate monthly net salary of cross-border workers, in proportion to their income. For example, if the tax rate goes from 5.3% to 6%, a worker with a gross salary of CHF 5,000 will see his net salary reduced by about CHF 70 per month (based on a 0.7% increase).
How does the calculation of the 13th AHV pension work for Italian cross-border commuters working in Switzerland?: The 13th AHV pension will be calculated on the basis of the contributions paid during your working career in Switzerland. For cross-border commuters, the pension will depend on the contributions paid in both Switzerland and Italy, but only Swiss contributions will be taken into account for the calculation of the Swiss part. The payment will take place starting from December 2026.
Do cross-border commuters also have to pay AHV contributions in Italy in addition to Swiss ones?: No, cross-border commuters do not have to pay AHV contributions in Italy if they are already insured in Switzerland. However, if they have periods of work in Italy, these are taken into account for the calculation of the Italian pension, but do not overlap with the Swiss contributions. Switzerland and Italy have bilateral agreements to avoid double contributions.
What happens if a cross-border commuter changes jobs during the year in Switzerland? Does anything change for the 13th AHV?: No, the 13th AHV is based on the contributions paid during the calendar year, regardless of the number of employers. Each employer withholds the AHV rate (currently 5.3%) from the gross salary and pays it to the Swiss authorities. The calculation of the final pension will take into account the total sum of the annual contributions.