AVS and Supplementary Benefits in the Canton of Basel-Landschaft

Context

At a Glance

• AVS: 5.3% employee contribution, 10.6% gross (including employer contribution). Forms the basis of the pension system.
• Supplemental benefits: supplement insufficient AVS pensions up to the subsistence level.
• Compensation fund: Manages contributions and calculates pensions at the cantonal level.
• Contribution gaps: Periods without contributions reduce the pension; the system provides for top-up payments.

Key Facts

• What: AVS (First Pillar), supplementary benefits, cantonal compensation fund
• Where: Canton of Basel-Landschaft (uniform federal procedures across all cantons)
• Who: Employees, employers, Swiss residents; administered by the Federal Social Insurance Office (BSV) at the federal level
• Contribution: 5.3% employee, 10.6% total (including employer’s share)
• Administration: Cantonal administration + cantonal compensation fund

The first pillar of the Swiss pension system, the AVS, forms the foundation of the social security system for those living and working in Switzerland. In the Canton of Basel-Landschaft, as in other cantons, the local compensation fund manages the contributions paid by employees and employers in accordance with uniform federal regulations. Every employed resident pays 5.3% of their gross salary into the AVS (to which the employer adds another 5.3%), accumulating pension rights year after year. Those with contribution gaps—periods without contributions—may be eligible for supplementary benefits to ensure a minimum standard of living in retirement.

Supplementary benefits represent a mechanism of federal solidarity: when a retiree’s AVS pension does not cover essential living expenses (rent, food, healthcare), the government makes up the difference up to a maximum limit. This system is crucial for those with a fragmented work history or who have paid contributions for fewer than 43 years. In the canton of Basel-Landschaft, as throughout Switzerland, the entity responsible for this supplementation is the cantonal administration, which works in coordination with the Federal Social Insurance Office (UFAS/BSV). Those receiving supplementary benefits are also entitled to KVG (health insurance) subsidies: See health insurance options →

Role of the Cantonal Compensation Office

The Compensation Office of the Canton of Basel-Landschaft is not a bank but a federal administrative office with cantonal-regional jurisdiction. Its main task is to record the AVS contributions paid throughout a person’s working life, verify that payments are complete, and calculate the pension based on the average of the coordinated annual wages. When an employee changes jobs, the new employer reports the contributions to the fund, which updates the individual’s file. At the end of their working career (between the ages of 64 and 70), the retiree submits a pension application to the same fund, which performs the final calculation. The AVS calculation follows federal rules that are identical in all cantons: credits accrue for each year of contributions, while years without contributions are considered gaps. If the gaps exceed certain limits, the monthly pension is reduced proportionally.

Operational details

Supplementary benefits are not an optional additional pension, but a federal legal entitlement recognized by Swiss law. Anyone whose AVS pension falls below the legally defined subsistence minimum (an amount indexed annually, not yet specified here) may apply to the relevant cantonal office. In the canton of Basel-Landschaft, the application is submitted to the cantonal social services office, which assesses income, assets, and personal circumstances. The system takes into account both the AVS pension and other sources of income (rental income, LPP/BVG occupational pensions, third-pillar savings, and family allowances) and supplements them until the minimum cost of living recognized by federal law is covered.

Scenario: Contribution Gaps and Reduced Pension

A resident who has paid AVS contributions for 35 years (instead of 43) has an 8-year contribution gap. Their AVS pension will be calculated based on 35 years of average earnings, with a proportional reduction compared to a full 43-year career. If this pension is insufficient, supplementary benefits will top it up to the subsistence minimum (the amount varies by canton and family situation; check with your local compensation office). The application for supplementary benefits is submitted to the cantonal administration, not to the AVS fund. Supplementary benefits also take into account Disability Insurance (AI) if the applicant is entitled to it. In the canton of Basel-Landschaft, the same federal rules apply as in all other cantons: the federal agency UFAS/BSV defines the criteria, the cantonal administration manages the cases, and the compensation office provides data on the AVS pension.

Importance of Contribution Records and Preventive Checks

Anyone who wants to maximize their AVS pension must ensure that every year of employment is correctly recorded by the compensation fund. Before retiring, it is wise to check your AVS statement (available from the fund itself or via the online portal) to verify that no contributions are missing. If there are errors—perhaps due to periods spent abroad, a change in employer, or personal financial difficulties—you can request a supplement or a review from the fund. This check must be done years before retirement, not at the time of applying for the pension. Approfondisci il calcolo della tua rendita nel nostro calcolatore AVS →

Useful planning tools

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Key points

How to Apply for an AVS Pension and Supplementary Benefits

The process consists of two parallel steps. Step 1: About 1–2 months before turning 65 (for women) or 65 (for men), the employee automatically receives an informational letter and an AVS pension application form from the compensation fund. If you do not receive this letter, contact the compensation fund for the canton of Basel-Landschaft directly. Fill out the form, attach a copy of your passport or ID card, and submit it by mail or in person. Step 2: At the same time, if you anticipate that your AVS pension will be insufficient (e.g., due to gaps in coverage or a fragmented work history), submit a separate application for supplementary benefits to the cantonal social assistance office in Basel-Landschaft. There is no strict deadline for this application, but it is advisable to submit it immediately after receiving the AVS pension calculation from the fund to avoid losing retroactive entitlements.

Required Documents and Administrative Procedure

For the AVS pension application: the pension fund’s official form, a valid ID, and income statements for the past few years (if necessary). For the application for supplementary benefits: a copy of the AVS calculation letter received from the fund, a detailed list of other income and assets (rental income, bank interest, LPP, family allowances), and a statement of essential monthly expenses (rent, utilities, medical care). If you are a foreign national: proof of residence (C residence permit for Switzerland). All official information and forms are available at the office of the Cantonal Compensation Fund of Basel-Landschaft. Communication between the AVS fund and the supplementary benefits office is coordinated at the federal level, so there is no need to submit duplicate copies of the same documentation. However, always check with your local fund to confirm exactly which documents are required, as cantonal administrative procedures may involve minor additional details.

Approfondisci il calcolo della tua rendita nel nostro calcolatore AVS →

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