AVS and complementary services: compensation fund (cross-border guide)

Context

In a nutshell

• The AVS is the first pillar of Swiss social security, fuelled by mandatory contributions of 5.3% for employees
• The cantonal compensation fund manages contributions and annuities in the territory
• Contribution gaps directly reduce the final monthly AVS income
• Supplementary benefits provide a safety net for those with insufficient income

Key facts

• What: Pillar social security system with AVS as mandatory basis
• Employee contribution: 5.3% of gross salary (10.6% with employer share)
• Management: Cantonal compensation fund for collection and disbursement
• Contribution gaps: Years without payments proportionally reduce the income
• Complementary benefits: Monthly integration to cover the minimum living
• Reference age: 64 years old women, 65 years old men

The Swiss social security system is divided into three pillars. The AVS, the first pillar, is the mandatory basis: each employee pays 5.3% of the salary, to which is added an equivalent contribution from the employer (overall 10.6% on the paycheck). Self-employed workers also pay contributions calculated on their professional income.

The canton's compensation fund collects these payments and manages the related benefits. It is not a personal deposit in which money remains frozen: it is an administrative institution that works with solidarity principles, where the contributions of those who work finance the income of

Operational details

How the clearinghouse is structured

The cantonal clearing house (as in every Swiss canton) is the entity that centralizes the management of the AVS at the territorial level. It receives payments from companies and self-employed workers, maintains individual tax registers, calculates pensions upon reaching the reference age (64 for women, 65 for men), and pays monthly payments to pensioners.

The cashier is NOT a bank where your money remains deposited in a personal account — it is a public administration that distributes the collected social security wealth according to federal rules and the principle of solidarity between generations. Each canton has its own compensation fund, often managed by the cantonal department of social insurance or the finance office.

The calculation of the annuity: components and variability

The AVS annuity is not a simple reimbursement of the deposit. It is calculated on the basis of three main components:

1. Years of contribution: the completeness of the working career (ideally 44 years for the maximum income). Those who have gaps receive a proportionately lower income.

2. Average Salary: The average income reported during the career, discounted according to federal indices. Not only the final salary counts, but the entire work history, which makes it important to verify the correctness of the recorded data.

3. Contribution gaps: every year without

Useful planning tools

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

Key points

Verify your rights: a step-by-step guide

If you are approaching the reference age (64-65 years) or want to check your AVS rights, follow these concrete steps:

1. Request your career extract (Versicherungsverlauf) Contact your cantonal compensation fund or visit the Federal Social Insurance Office (UFAS, German UFAS, French OFAS) website. The extract shows all registered payments, gaps, the duration of the accredited career, and personal data as recorded in federal archives. It's free and can be requested online or by mail.

2. Calculate an estimate of your pension Many cantons and the UFAS offer online calculators where you insert the extract data and receive a projection of your future AVS pension. This estimate is useful for planning your retirement and understanding if integration with other income sources (LPP, third pillar) will be necessary.

3. Evaluate the appeal for unjustified gaps If you discover unjustified gaps (periods where you would have had to pay but it's not recorded), you can appeal within a limited term (usually 1-2 years) to fill or correct them. Some periods of illness, unemployment with benefits, or other events may be covered by equity contributions - check with the fund.

4. Plan the third pillar If the pension estimate seems insufficient, consider contributions to a third pillar 3a account up to the annual maximum (variable amount, check with your bank each year). This integrates your AVS and reduces federal, cantonal, and municipal taxation.

How to request complementary benefits

In the 3-6 months before accessing your pension (don't wait for the first day of pension), contact:

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