13th AVS Pension: National Council Insists on VAT Increase (cross-border guide)
The National Council has confirmed the funding of the 13th AVS pension solely through a VAT increase, rejecting the mixed solution. Implications for cross-border workers.
Contesto
In brief - The National Council voted 99 to 97 to fund the 13th AVS pension solely through VAT. - Increase of 0.5 percentage points, standard rate to 8.6%. - Reduced rate on essential goods remains unchanged at 2.6%. - Transitional solution until 2033, pending the AVS2030 reform. ## Key facts - What: Funding of the 13th AVS pension through VAT increase - When: Summer session of June 3, 2026 - Where: Bern, National Council - Who: National Council (99 votes to 97) - Amount: VAT increase of 0.5 percentage points, standard rate to 8.6%, reduced rate stable at 2.6% - Discrepancy: The Council of States prefers a mixed funding model (VAT and wage contributions) - Duration: Transitional solution limited to 2033 The National Council has reaffirmed its stance on the 13th AVS pension: funding must come exclusively through an increase in value-added tax. With 99 votes in favor and 97 against, the House of Representatives rejected the proposal of the Council of States, which instead insists on a mixed model, combining the VAT increase with a rise in wage contributions. The close vote confirms what emerged in previous readings and leaves open a discrepancy that will need to be resolved in the coming weeks. ### Details of the VAT increase The increase approved by the National Council is 0.5 percentage points, raising the standard rate from the current 8.1% to 8.6%. This is a downward adjustment compared to the first reading, when deputies proposed an increase of 0.7 points. The reduced rate, applied to essential goods and services such as food supplies, will remain unchanged at 2.6%. This choice is intended to limit the additional burden on families, as emphasized during the debate. ### A bridge solution until 2033 Funding through VAT is considered a transitional measure. Parliame...
Dettagli operativi
The impact on cross-border workers: between cost of living and purchasing power For those who cross the border between Italy and Canton Ticino every day, the vote on the National Council is not an abstract issue. The thirteenth AVS represents a concrete benefit for cross-border workers with a G permit, who pay AVS contributions like any other employee in Switzerland. However, the chosen funding method – the increase in VAT – directly affects the cost of living, an aspect already under pressure for those earning in francs and spending partly in Italy and partly in Switzerland. ### A contained increase, but not to be underestimated An additional 0.5% on the normal rate means that current consumption goods and services – from clothing to electronics, from meals at restaurants to transportation – will cost slightly more. For a cross-border worker who shops across the border, for example, in shopping centers in Mendrisio or at the Brogeda passes, the impact will be noticeable but not dramatic. The invariance of the reduced rate of 2.6% for food items mitigates the effect on essential expenses. However, if the Council of States were to impose a mixed funding method, the increase in salary contributions would directly reduce the net pay, eroding purchasing power more immediately. ### Cross-border shopping: a parallel novelty In the same session, the National Council approved a motion to lower the 300-franc threshold for VAT refunds on purchases in Switzerland. A measure aimed at encouraging shopping tourism, which also interests cross-border workers. If confirmed, it will make it easier to reclaim VAT on goods purchased in Ticino, partially compensating for the increase in the rate for those who shop across the border. A detail to keep an eye on, as it could influence the sp...
Punti chiave
What to do now: monitor and prepare The issue of the 13th AVS pension is still open. The Council of States will vote again, and the final compromise could combine VAT and contributions. For a cross-border worker, the advice is to be prepared and use the right tools to assess the impact on your household budget. ### Keep an eye on the parliamentary process The debate is likely to conclude by the summer session. Following developments is crucial: an increase in salary contributions would have an immediate effect on your pay slip, while a VAT increase would be reflected in consumer prices more gradually. The transitional solution until 2033 still offers a broad time horizon, leaving room for possible adjustments with the AVS2030 reform. ### Simulate the impact on your purchasing power To understand how much a possible VAT or contribution increase will affect you, you can use the cost of living calculator to compare your current expenses with a scenario of prices increased by 0.5%. If you are concerned about an increase in salary contributions, the net salary calculator allows you to simulate the effect on your pay slip by entering the updated social security items. ### Evaluate VAT refund opportunities With the possible reduction of the threshold to 150 francs, it is worth finding out about the procedures for VAT refunds on purchases in Switzerland. Many cross-border workers already take advantage of this opportunity, but lowering the threshold will make it accessible even for smaller expenses. Keep an eye on the final approval of the motion and, in the meantime, always keep the receipts for your purchases across the border. The 13th AVS pension is a right that accrues with the contributions paid. Knowing the financing rules helps you plan your financial future, bo...
Punti chiave
[{"q":"What does the 13th AVS pension mean for cross-border workers?","a":"Cross-border workers employed in Switzerland are insured under the AVS (old-age and survivors’ insurance) and will be entitled to the 13th pension payment, an additional monthly benefit that supplements their retirement income. According to the National Council, this benefit will be funded exclusively through an increase in VAT, without affecting salary contributions."},{"q":"When will the VAT increase to finance the 13th AVS pension come into effect?","a":"The VAT increase, as proposed by the National Council, is a temporary solution limited until 2033. The exact date of its implementation will depend on the outcome of negotiations with the Council of States and the final approval of the law. It has not yet been set."},{"q":"How will the VAT increase affect prices in Ticino?","a":"The standard VAT rate will rise to 8.6% (+0.5 points), making consumer goods and services such as clothing, electronics, and dining slightly more expensive. The reduced rate for food items remains at 2.6%, so the impact on grocery spending will be minimal."},{"q":"What changes for VAT refunds on purchases in Switzerland?","a":"The National Council has approved a motion to lower the minimum threshold for requesting a VAT refund from 300 to 150 francs. If confirmed, this will make it easier for cross-border workers to reclaim VAT on purchases made in Ticino, partially offsetting the rate increase."}]
Frequently Asked Questions
- What does the 13th AVS pension mean for cross-border workers?
- Cross-border workers employed in Switzerland are insured under the AVS (old-age and survivors’ insurance) and will be entitled to the 13th pension payment, an additional monthly benefit that supplements their retirement income. According to the National Council, this benefit will be funded exclusively through an increase in VAT, without affecting salary contributions.
- When will the VAT increase to finance the 13th AVS pension come into effect?
- The VAT increase, as proposed by the National Council, is a temporary solution limited until 2033. The exact date of its implementation will depend on the outcome of negotiations with the Council of States and the final approval of the law. It has not yet been set.
- How will the VAT increase affect prices in Ticino?
- The standard VAT rate will rise to 8.6% (+0.5 points), making consumer goods and services such as clothing, electronics, and dining slightly more expensive. The reduced rate for food items remains at 2.6%, so the impact on grocery spending will be minimal.
- What changes for VAT refunds on purchases in Switzerland?
- The National Council has approved a motion to lower the minimum threshold for requesting a VAT refund from 300 to 150 francs. If confirmed, this will make it easier for cross-border workers to reclaim VAT on purchases made in Ticino, partially offsetting the rate increase.