AVS and Supplementary Benefits in the Canton of Basel-Landschaft (cross-border guide)

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.

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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.

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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.

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