Thirteenth AVS Mixed Solution States | Frontaliere Ticino
Thirteenth AVS Mixed Solution States — free tools and expert guides for cross-border workers (frontalieri) between Switzerland and Italy. Compare salaries, tax, LAMal health insurance, pensions, and cost of living in Ticino. Updated 2026.
Context
The Council of States has put forward a proposal to fund the thirteenth AVS monthly payment, aiming to strike a balance between the needs of the social security system and the concerns of taxpayers. The Council of States, aware of the sensitivity of the issue, carefully evaluated the options, opting for a mixed solution. This proposal includes a 0.3 percentage point increase in payroll contributions and a 0.4 percentage point increase in VAT. For example, for an annual salary of 80,000 CHF, the increase in payroll contributions would be approximately 240 CHF, while the VAT increase, applied to a monthly expenditure of 2,000 CHF, would result in an increase of around 8 CHF. The National Council had initially proposed an exclusive increase in VAT, but the States preferred this mixed solution, considering the current economic situation. Additionally, they decided against reducing contributions to unemployment insurance, a measure that could have negatively impacted workers. The thirteenth AVS monthly payment is an important benefit for the elderly, and the States' proposal aims to ensure its financial sustainability. With this solution, it is estimated that AVS funding could increase by approximately 300 million CHF per year, thus ensuring the continuity of the benefit. The debate saw active participation from all political parties, with a careful analysis of the options. The mixed solution represents a reasonable compromise, taking into account the needs of AVS and citizens. For citizens, it is important to understand the impact of this decision. For instance, for a worker earning 60,000 CHF, the increase in payroll contributions would be approximately 180 CHF per year, while the VAT increase, considering a monthly expenditure of 1,500 CHF, would result in an increas...
Operational details
Thirteenth AVS Payment: The States Propose a Mixed Solution The States' proposal to fund the thirteenth AVS monthly payment through an increase in VAT and payroll contributions has received a positive reception from industry experts. This strategy, which combines two funding sources, is considered a balanced and sustainable measure to ensure the financial stability of AVS. While the VAT increase may raise some concerns, it is actually a measure aimed at distributing the tax burden more fairly. VAT is a regressive tax that disproportionately affects the consumption of citizens with lower incomes. However, the proposed increase is moderate and should not have a significant impact on household budgets. For example, for a 100-franc purchase, increasing VAT from 7.7% to 8% would result in an additional expenditure of just 0.33 francs, a negligible amount compared to the total cost. Payroll contributions, on the other hand, are a more direct and targeted source of funding. Increasing payroll contributions primarily affects employers and workers with higher incomes, ensuring a more equitable distribution of the tax burden. This measure is considered fairer as it takes into account each individual's ability to contribute. For instance, a worker earning an annual salary of 100,000 francs would contribute a larger amount compared to a worker earning 50,000 francs. The combination of these two funding sources is seen as a balanced and reasonable solution. The limited increase in payroll contributions and VAT ensures that AVS funding is sustainable without overly burdening a particular group of taxpayers. Additionally, this strategy takes into account international best practices in pension funding. Many countries, such as Germany and France, have adopted similar solutions, dem...
Key points
Thirteenth AVS Payment: The States Propose a Mixed Solution The Council of States' proposal to fund the thirteenth AVS monthly payment through an increase in VAT and payroll contributions is an idea that deserves attention. If implemented, this measure could have a significant impact on the Swiss social security system and, consequently, on cross-border workers in Ticino. For cross-border workers, it is crucial to understand the potential consequences of this decision. For example, a 2% increase in VAT could result in an additional cost of approximately CHF 200 per year for an average family spending CHF 10,000 on VAT-liable goods and services. Similarly, a 2% increase in payroll contributions could mean a reduction in net salary of around CHF 50 per month for a worker earning CHF 3,000. To assess the impact of these measures, it is advisable to use financial planning tools. For instance, the salary calculator on frontaliereticino.ch can help estimate the effect of the proposed increases on your budget. Simply input your salary and monthly expenses to obtain a personalized estimate. Additionally, it is important to stay updated on the progress of this proposal. The National Council will need to express its opinion on the matter, and the final decisions could have a significant impact on cross-border workers' financial future. Therefore, it is essential to regularly check the "News" section on frontaliereticino.ch, where the latest updates and any modifications to the proposals will be published. - 📊 Real-life example: For a cross-border worker in Lugano earning CHF 4,500, a 2% increase in payroll contributions could mean a reduction in net salary of approximately CHF 90 per month. - 💡 Tip: Compare your monthly expenses with the salary calculator's estimate to und...