VAT increase for the 13th AVS pension payment: the alliance’s yes

Context

TL;DR

• Left, Center and Evangelical Party support the proposal.
• Parliament proposes 0.4 VAT points for the 13th AVS.
• The popular vote is set for 29 November.
• Average income: about 85 francs more, 2,000 of annuity.

Key facts

• Subjects → left, Center, Evangelical Party
• Parliamentary decision to → increase VAT by 0.4 points
• Vote → 29 November
• Comparison → of about CHF 85 per year against about CHF 2,000
• Exclusion → of basic necessities

On 29 November, the population will vote on the VAT increase chosen by Parliament to finance the 13th AVS annuity. The consultation will come a few days before the first payments, according to the source.

On Tuesday, after the position expressed by the Federal Council the previous week, Left, Center and Evangelical Party defended the solution. In a statement, the alliance argues that the stability of the AVS and the security of pensions require solid funding of the 13th annuity. The same alliance warns that a no would endanger the AVS.

What the alliance supports

To finance the 13th AVS annuity, supported in a popular vote in 2024, Parliament opted for an increase in VAT of 0.4 points. The increase excludes basic necessities, to protect modest incomes.

The coalition wants to respond to the arguments of PLR and UDC, who oppose the project. Léonore Porchet (Verdi/VD) used the case of a middle-income person to compare the two effects:

MEP Léonore Porchet (Greens/DV) defended the measure by observing that, for a person with an average income, the annual increase in VAT would be about 85 francs, while the additional income would reach about 2,000francs per year at the time of retirement: "It's worth it".

For the border crossing, the verifiable link is limited to the AVS. The source does not deal with G, LPP, LAMal, refunds, tax at source or double taxation, and therefore does not offer elements to connect the proposal to these matters.

Operational details

The figure to be read with more caution is the comparison between 85 and 2,000francs. The first figure is described as extra VAT per year for a middle-income person; the second as an additional annual annuity at retirement age. They are therefore two different moments: an annual disbursement and a benefit placed in the retirement phase. The source does not present them as a custom calculation for each border crossing.

For a frontier worker who wants to apply the figure to his situation, the text does not indicate the precise income to be used, the composition of the household, the consumption basket or the date of application of the increase. It does not even list the basic necessities excluded from the measure. For this reason, the 85 francs cannot be treated as an identical figure for each person: they are the estimate cited by Porchet for an average income.

The stated limit on funding

Philipp Matthias Bregy, president of the Center, argues that a no would endanger the AVS and the people who benefit from it. However, he adds that the project does not cover the entire financial needs of the AVS and that with the reform of the AVS 2030 further solutions will have to follow. The source does not quantify these measures and does not indicate their calendar or content.

The social security data must therefore be kept separate from the matters that the text does not address, such as tax at source, permit G and LAMal. To deepen the component covered by the news, you can consult the guida AVS e LPP, without transforming a political estimate into a personal forecast.

Useful planning tools

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

Useful planning tools

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

Key points

The text makes it possible to establish only one precise deadline: November 29. It does not indicate voting procedures, documents, offices, or different deadlines. A more detailed procedure could not be derived from the source and should not be added to the article.

The checklist for reading the proposal

1. Mark November 29 as the date of the popular vote on the VAT increase. 2. Separate the subject of the vote from the pension outcome: the 0,4 points are used to finance the 13th AVS pension supported in 2024. 3. Read the 85 francs as the annual estimate indicated for a person with an average income, not as an automatic amount for every cross-border commuter. 4. Keep the timing distinct: the supplementary pension of about 2'000 francs refers to retirement age, while the vote comes a few days before the first payments. 5. Compare the positions: the alliance links a no vote to a risk for AVS, while the Centre admits that the project does not cover the entire need.

For those who work across the border, this check avoids attributing to the proposal effects that the source does not describe regarding a G permit, tax rebates, withholding tax, or double taxation. The text does not mention administrative updates for cross-border commuters or changes to the payslip. If you need to check the items on your payslip, simulatore della busta paga is available, but the source does not provide data for an individual estimate.

To move from the general data to your simulation, use calcolatore fiscale.

Source: rsi.ch