What are the mandatory AVS contributions for an employee?

An employee pays 5.3% of their salary as an AVS contribution; the employer in turn pays 5.3% of the employee's salary (total system: 10.6%). These payments are mandatory and determined by federal law. The cantonal compensation fund records all contributions paid to the personal insurance account, where they remain stored until retirement.

What are contribution gaps and how do they affect AVS income?

A contribution gap is a period of work not declared to the AVS or an absence from the labour market without coverage of unemployment benefits. Each missing year reduces the final annuity, as the calculation is based on the total number of years of contribution. It is possible to regularize a gap within 5 years of discovery by paying the missing contributions retroactively, which significantly increases the pension benefit.

Who is entitled to supplementary benefits in the Canton of St. Gallen?

Supplementary benefits are due to residents with an AVS income insufficient to cover the minimum living allowance and limited assets (canton-defined subdivisions). In St. Gallen, the competent Office assesses the application and settles an additional monthly amount that fills the difference between the AVH annuity and the essential expenses (accommodation, food, energy, medical care). Access is a right, not a discretionary subsidy.

When should I contact the compensation fund for the annuity application?

It is recommended that you contact the Canton of St. Gallen Compensation Fund at least 3 months before your desired retirement date. This allows you to fill in the official application calmly, check the accredited contributions, check any gaps and receive the calculation of the annuity in advance. The payment of the pension normally begins the month following retirement.

How can I verify the contributions made to my AVS account?

Each person has the right to request a statement of the AVS account from the cantonal clearing house. This document, provided free of charge, shows all contributions credited year by year and allows you to verify the accuracy of the data. It is important to check it periodically to promptly report any gaps or errors. Corrections must be requested within specific deadlines at the cash desk.

AVS and complementary services: St. Gallen guide (cross-border guide)

Di Laura Bianchi · Published on 4 September 2026

St. Gallen cantonal compensation fund office building: key institution for AVS retirement and supplementary benefits services

How the first pillar works in the Canton of St. Gallen. Learn about the role of the cantonal compensation fund, pension calculation, contribution gaps and supplementary benefits for the living minimum.

Context

In a nutshell

The AVS is the foundation of Swiss social security: mandatory, financed with 5.3% contributions for employees (10.6% total with employer).
The cantonal compensation fund records the contributions and calculates the annuity based on the years of contribution and the amounts paid.
Supplementary benefits cover the minimum living allowance when the AVS income is not sufficient: regulated by the Canton of St. Gallen and subsidized by the Confederation.

Key facts

What: First pillar of Swiss social security (AVS/AHV), mandatory for all workers
When: Registration from the first day of work until retirement (currently 65 years for men, 64 for women, with reform in progress)
Where: Managed by the Canton of St. Gallen Clearing House and UFAS/BSV at federal level
Who: Employers, employees, cantonal administration (complementary services)
Amount: Contribution rate 5.3% employees, calculation of annuity based on years and amounts credited to the insurance account

The AVS represents the fundamental pillar of Swiss social security. In the Canton of St. Gallen, as in every canton, the operational management is the responsibility of the local compensation fund: the entity that registers members, credits the contributions paid monthly by employers and employees, maintains the individual insurance account and, upon reaching retirement age, calculates and pays the pension.

The system is mandatory for any

Operational details

Calculation of the AVS annuity: mechanics and determining factors

The AVS pension is not a refund of contributions paid, but a benefit calculated according to a federal formula that takes into account two essential elements: the number of years of contribution from the first job until retirement age, and the average amount of annual contributions during the entire career. For a full income and not reduced, 44 years of contributions (for men) are required. If years are missing, the annuity is reduced proportionally: each missing year results in a reduction calculated on the basis of the federal formula.

The compensation fund of the Canton of St. Gallen carries out the calculation using the data stored in the personal insurance account. The process starts at least 3 months before the desired retirement age. The fund estimates the average coordinated income (i.e. the average salary during the career), applies the federal formula and informs the retiree of the result — normally 4 weeks before the start date of the pension. It is at this time that the taxpayer finds out if gaps result or if the coverage is complete.

An important element: the taxpayer can request the deferral of the pension up to 5 years after the retirement age. This choice significantly increases the monthly benefit amount, as years of contribution are added and a federal surcharge factor is applied.

Contribution gaps: origin,

Useful planning tools

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

Key points

## How to apply for the AVS annuity in the Canton of St. Gallen The AVS annuity application procedure must start at least 3 months before the desired retirement date. The steps are as follows: 1. Contact the cantonal clearing house. The first step is to notify the Canton of St. Gallen's compensation fund of your intention to retire and the expected date. This contact can be by phone, email or personal visit. During this communication, request the official AVS pension application form and provide personal data, AVS number and desired pension start date. 2. Fill in the official application . The cash register provides a standardized form that must be filled in each part. The form must state if you intend to continue a work activity during retirement (this information affects the calculation of the pension) and if you want to request the deferral of the pension to obtain a higher monthly amount. 3. Submit the application within the correct deadlines. The completed form must be delivered to the compensation fund within the month in which the pension begins. The fund verifies the registration, the contributions credited over the years, any gaps and the correctness of the personal data. 4. Receive notification of the calculation. Approximately 4 weeks before the start date of the pension, the fund communicates the result of the calculation: the amount of the monthly pension, the number of years If you are self-employed or self-employed, AVS contributions are optional but highly recommended to ensure a solid retirement income. A complete and correct contribution history is the basis of financial security in retirement and the possibility of accessing supplementary benefits if necessary. Learn more about pension planning with the nostro calcolatore della rendita AVS: an interactive tool that estimates the amount of your future benefit based on the data provided, allowing you to evaluate whether to pay voluntary contributions to increase it further.

Frequently Asked Questions

What are the mandatory AVS contributions for an employee?: An employee pays 5.3% of their salary as an AVS contribution; the employer in turn pays 5.3% of the employee's salary (total system: 10.6%). These payments are mandatory and determined by federal law. The cantonal compensation fund records all contributions paid to the personal insurance account, where they remain stored until retirement.
What are contribution gaps and how do they affect AVS income?: A contribution gap is a period of work not declared to the AVS or an absence from the labour market without coverage of unemployment benefits. Each missing year reduces the final annuity, as the calculation is based on the total number of years of contribution. It is possible to regularize a gap within 5 years of discovery by paying the missing contributions retroactively, which significantly increases the pension benefit.
Who is entitled to supplementary benefits in the Canton of St. Gallen?: Supplementary benefits are due to residents with an AVS income insufficient to cover the minimum living allowance and limited assets (canton-defined subdivisions). In St. Gallen, the competent Office assesses the application and settles an additional monthly amount that fills the difference between the AVH annuity and the essential expenses (accommodation, food, energy, medical care). Access is a right, not a discretionary subsidy.
When should I contact the compensation fund for the annuity application?: It is recommended that you contact the Canton of St. Gallen Compensation Fund at least 3 months before your desired retirement date. This allows you to fill in the official application calmly, check the accredited contributions, check any gaps and receive the calculation of the annuity in advance. The payment of the pension normally begins the month following retirement.
How can I verify the contributions made to my AVS account?: Each person has the right to request a statement of the AVS account from the cantonal clearing house. This document, provided free of charge, shows all contributions credited year by year and allows you to verify the accuracy of the data. It is important to check it periodically to promptly report any gaps or errors. Corrections must be requested within specific deadlines at the cash desk.