Second pillar: the Union calls for a CH-IT comparison

Context

TL;DR

• The Unione Frontalieri Italiani calls for talks
• The topic is the second pillar
• The talks involve Italy and Switzerland

Key facts

• Subject → Unione Frontalieri Italiani
• Topic → second pillar
• Request → talks with Italy and Switzerland

The request and scope

The Unione Frontalieri Italiani calls for talks with Italy and Switzerland on the second pillar. This is the central fact of the news: for the worker who crosses the border, the discussion concerns Swiss occupational pension provision and how it is considered together with the other components of the employment relationship.

In Swiss pension terminology, the second pillar corresponds to the LPP. It is not the same item as the AVS and should not be confused with the LAMal, which concerns health insurance. For a frontier worker with a G permit, this distinction helps interpret deductions correctly and avoid adding together institutions that serve different purposes.

The LPP contribution rate ranges from 7 to 18% depending on the age bracket, starting at 25 years of age. This figure does not replace checking the individual position, but it explains why the second pillar has a tangible weight in the discussion requested by the Union. Verification must start with the LPP item, not with a generic deduction from the salary.

The AVS also has its own item: the employee share for AVS/AI/IPG is 5,3%. INPS, on the other hand, belongs to the Italian system. Comparing LPP, AVS and the INPS position without separating the different levels risks making the situation of the worker in Canton Ticino difficult to understand.

The topic is fully cross-border. The worker may have an employment relationship in Switzerland, residence in Italy and a G permit, but the news indicates a request for talks on the second pillar. It does not, by itself, announce a new rule for the payslip, a new rate or a deadline.

To follow the pension dossier without confusing pensions, taxes and health insurance, it is advisable to start from guida ad AVS e LPP. The talks between Italy and Switzerland can be understood correctly only by keeping occupational pension provision separate from the other aspects of cross-border work.

Operational details

Three levels not to be conflated

The request for a comparison becomes understandable when the cross-border worker separates pension provision from taxation. The items that appear in the employment relationship do not all have the same function and do not apply according to the same logic.

The table helps isolate the pension aspect. If the worker looks at monthly net pay, LPP should not be confused with AVS or AD/AC; if they look at tax matters, they should not turn the credit mechanism into a double withholding. For employment income, withholding tax is withheld only in Switzerland. Italy avoids double taxation through the tax credit indicated in the CE section of the 730 tax return.

The tax dates to keep separate

The phrase new tax agreement 2026 should also be used with caution. The Nuovo Accordo Frontalieri was signed on December 23, 2020, has been in force since January 1, 2024, and Italy ratified it with Law 83 of June 13, 2023. These are dates relating to the tax framework, not to the LPP calculation.

The distinction between old and new cross-border workers affects how income is interpreted. Anyone who was already a cross-border worker before July 17, 2023 falls under the 7.500 euro exemption provided for by the 2024-2033 transitional regime. For new cross-border workers, the tax-free allowance is 10.000 euro. This comparison does not change the nature of the second pillar: it serves to avoid confusing the tax rule with occupational pension provision.

For a worker in Canton Ticino, therefore, the question to ask is not only how much is withheld, but which institution each item belongs to. LPP, AVS, withholding tax and double taxation require separate readings; LAMal remains a separate chapter. A guida alla dichiarazione dei redditi helps keep the tax path separate from the pension path.

Useful planning tools

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

Key points

Four operational steps

1. Set the reference date. Note whether you were already a cross-border worker before July 17, 2023. This step guides the distinction between old and new cross-border workers: in the former case, the 7.500 euro exemption under the 2024-2033 transitional regime applies; in the latter, the allowance is 10.000 euro.

2. Separate the social-security items. Read LPP and AVS/AI/IPG on separate lines. For LPP, take the age bracket into account, because the applicable rate ranges from 7 to 18% from the age of 25. Also keep AD/AC separate, set at 1,1% up to the CHF 148'200 limit. Do not include LAMal in the same block: it serves as health insurance.

3. Reconstruct the tax process. For employment income, withholding tax is deducted only in Switzerland. In the Italian filing, the tax credit in Section CE of the 730 serves to prevent double taxation. This is the point to check when comparing Swiss net pay and the Italian tax return, without adding the same tax twice.

4. Set out the agreement dates chronologically. The New Cross-Border Workers Agreement was signed on December 23, 2020, ratified in Italy by Law 83 of June 13, 2023, and has been in force since January 1, 2024. The chronology prevents 2026 from being mistaken for the entry-into-force date and helps correctly interpret the relationship between taxation and LPP.

This guide allows the cross-border worker to approach the comparison with organized data: status, date, social-security item and tax treatment. For the permesso G e B check, the administrative matter remains separate; guida ad AVS e LPP is available for pension matters.

To estimate the effect of the items on monthly net pay, use calcolatore dello stipendio netto.

Source: vconews.it