Will the 13th AVS annuity be definitively confirmed?

The decision depends on the popular vote of 29 November. The Centre's assembly voted 164 in favour (out of 183 delegates), but the final result will depend on the national consultation. If approved, the 0.4% VAT increase financing finances this additional pension for retirees.

How much will VAT increase if the measure passes?

The proposed increase is 0.4 percentage points on value added tax. This means that an asset that costs CHF 100 will suffer a modest but tangible increase. The impact is most evident on recurring purchases such as groceries, fuel, and services.

Are Italian frontier workers entitled to the 13th AVS annuity?

Yes, frontier workers who regularly pay AVS contributions in Switzerland are entitled to the AVS pension (and potentially the 13th pension if approved), regardless of their residence in Italy. The right depends on the years of contribution paid in Switzerland.

How do I check my current AVS payments?

You can request a free account statement from the territorial clearing office of your Swiss working canton. This document shows all recorded payments and estimates the future annuity. It is important to verify the absence of contribution gaps.

Does the VAT increase also affect cross-border purchases in Switzerland?

Yes, every purchase made in Switzerland will be subject to increased VAT (if approved by the vote). This includes groceries, private medical services, fuel and any other goods consumed in Swiss territory. Purchases in Italy remain subject to Italian tax legislation.

Center Assembly approves AVS financing with VAT

Di Laura Bianchi · Published on 5 September 2026

Lugano view, heart of Ticino and destination of Swiss border commuters

The Centre supports the financing of the 13th AVS annuity through a 0.4% VAT increase. Vote on 29 November. What changes for border workers?

Context

In brief

Centro Assembly approves AVS funding with 0.4% VAT increase
Swiss popular vote on 29 November
164 votes in favor out of 183 delegates present

Key facts

What: Centro Assembly supports funding of 13th AVS pension through VAT increase
When: 29 November (date of popular vote)
Where: Granges-Paccot, Canton of Fribourg
Who: 183 delegates of the Centro
Amount: VAT increase of 0.4 percentage points
Outcome: 164 votes in favor, 9 against, 10 abstentions

The Centro Assembly, meeting in Granges-Paccot in the Canton of Fribourg, expressed support for the additional funding of the AVS through an increase in the value-added tax (VAT). The vote recorded 164 votes in favor, 9 against, and 10 abstentions out of a total of 183 delegates. The proposed increase is 0.4 percentage points.

The decision concerns the funding of the 13th AVS pension, a measure that generates debates even within the party. Marie-France Roth Pasquier, a Fribourg national councillor, emphasized: "The 13th pension has been approved and must be funded." According to the politician, a rejection would not solve the structural problem of the pension system.

However, some delegates expressed significant concerns. They believe that the VAT-based model excessively penalizes the middle class. Furthermore, they argue that a different and more structural solution to the problem of Swiss pension funding is needed in the long term.

The second item put to the vote

In addition to the AVS issue, the assembly unanimously approved the relaxation of restrictions on the export and re-export of military material. This revision has already been approved by the Federal Chambers. According to the Centro, a Switzerland capable of defending itself needs a solid industrial base and reliable international partnerships.

Both items will be put to the Swiss popular vote on 29 November. The 183 delegates present followed the party presidency's recommendations on both issues.

Check your AVS situation using the tools dedicated to cross-border commuters.

Operational details

What does this mean for cross-border commuters?

For those who work in Switzerland and live in Italy, this decision has direct implications. The 0.4% increase in VAT affects the cost of living in Swiss territory, a relevant factor for cross-border commuters who travel daily across the border. However, the most significant aspect concerns the pension system itself.

The AHV and mandatory contributions

Cross-border commuters regularly pay AHV contributions on their Swiss paycheck. These contributions are mandatory and are withheld directly by the employer. Unlike some individual pension systems, the AHV operates on a solidarity basis: current workers finance today's retirees, with the expectation that tomorrow's workers will finance them.

The 13th AHV pension is an additional allowance paid once a year. For those with a limited pension income, this additional allowance can represent a significant contribution to the annual budget. Many cross-border retirees consider this amount part of their long-term financial planning.

The impact of the VAT increase on daily expenses

If the measure is approved in the vote on November 29, the 0.4% increase in VAT will be reflected in many goods and services purchased in Switzerland. For cross-border commuters, this is a matter of concrete budgeting: purchases of groceries in Ticino supermarkets, payment for services, medical services not covered by the LAMal, fuel — all will experience a slight increase.

Some representatives of the Center have suggested that other funding options could distribute the burden more fairly. Increases in mandatory contributions or revisions of federal tax rates could alternatively finance the system. However, the VAT method was preferred as it also affects foreign consumers, including tourists and daily cross-border commuters.

The role of the November 29 vote

Discover how your AHV pension is calculated with simulators dedicated to cross-border commuters. The popular vote on November 29 will be decisive. If the Swiss approve the AHV financing, the measure will come into effect according to the timetable set by the federal authorities. If the proposal is rejected, the Federal Parliament will have to find alternative solutions, potentially delaying the payment of the 13th pension.

Useful planning tools

To estimate your pension strategy, use the pension planner and the pillar 3 simulator.

Key points

What to do as a cross-border commuter

In this crucial phase, it is important to understand your current pension status and how the vote on November 29 could influence your financial future. Cross-border commuters have concrete tools at their disposal to plan ahead.

Check your personal AVS statement

The first step is to ensure you have a complete contribution history with the Swiss AVS. You can request a free statement from the territorial compensation office in your canton of work. This document shows all recorded contributions over the years and estimates the future pension based on contributions made up to that point. It is essential to verify that no contribution year has been omitted by mistake, as any gap reduces the final pension.

Pension planning across multiple pillars

While awaiting the referendum result, cross-border commuters can plan their pension future by considering the second pillar (LPP - Swiss pension fund) and the third pillar (3a). These components are independent of the AVS and provide crucial additional protection. Many cross-border commuters do not fully utilize the contribution possibilities of the third pillar, which offers tax advantages both in Switzerland and Italy through the Italian tax credit.

The third pillar allows for tax-deductible annual contributions: a long-term strategy that protects against regulatory uncertainties such as those surrounding AVS funding.

Timeline of next steps

The vote is scheduled for November 29. Cross-border commuters will receive official information from their canton of work and the municipalities of residence in Italy. In the event of approval, the VAT increase will come into effect according to the details communicated by the federal authorities. In the event of rejection, the debate on AVS funding will continue in the federal and cantonal parliamentary bodies.

Available digital tools

Use the paycheck calculator to check the impact of various scenarios on your tax deductions and AVS contributions. With a pension simulation tool, you can plan different pension scenarios considering possible changes in the funding system. These calculations will allow you to make informed decisions about contributions to the third pillar and your overall pension strategy.

Source: swissinfo.ch

Frequently Asked Questions

Will the 13th AVS annuity be definitively confirmed?: The decision depends on the popular vote of 29 November. The Centre's assembly voted 164 in favour (out of 183 delegates), but the final result will depend on the national consultation. If approved, the 0.4% VAT increase financing finances this additional pension for retirees.
How much will VAT increase if the measure passes?: The proposed increase is 0.4 percentage points on value added tax. This means that an asset that costs CHF 100 will suffer a modest but tangible increase. The impact is most evident on recurring purchases such as groceries, fuel, and services.
Are Italian frontier workers entitled to the 13th AVS annuity?: Yes, frontier workers who regularly pay AVS contributions in Switzerland are entitled to the AVS pension (and potentially the 13th pension if approved), regardless of their residence in Italy. The right depends on the years of contribution paid in Switzerland.
How do I check my current AVS payments?: You can request a free account statement from the territorial clearing office of your Swiss working canton. This document shows all recorded payments and estimates the future annuity. It is important to verify the absence of contribution gaps.
Does the VAT increase also affect cross-border purchases in Switzerland?: Yes, every purchase made in Switzerland will be subject to increased VAT (if approved by the vote). This includes groceries, private medical services, fuel and any other goods consumed in Swiss territory. Purchases in Italy remain subject to Italian tax legislation.