LPP Guide: Contributions, Withdrawal and Social Security Planning in Switzerland (cross-border guide)

Context

In a nutshell

• The second LPP pillar in Switzerland consists of contributions and levies.
• The contribution is 7% (25-34 years), 10% (35-44), 15% (45-54), 18% (55 years and over).
• Withdrawal is 25% of income.
• Gaps can only be redeemed if at least one year of contributions has been paid.

Contributions and withdrawal: how the second LPP pillar works

The second pillar of the Swiss pension system, known as “Work, Social Security, Productivity” (LPP), was introduced in 2020 to provide greater pension security for Swiss workers. This pillar consists of two key elements: contributions and levies.

Contributions

Contributions are an important part of the second LPP pillar. The contribution fee varies according to the age of the worker, as follows:

• 7% of income for workers aged 25-34
• 10% of income for workers between 35 and 44 years old
• 15% of income for workers aged 45-54
• 18% of income for workers aged 55 and over

These contributions are deducted from the worker's gross income and paid into the second pillar pension fund.

Withdrawal

Picking is another important component of the second LPP pillar. This levy is applied to the worker's gross income and has a rate of 25%. The withdrawal is paid to the second pillar pension fund, together with contributions.

Gap redemption

It is possible to redeem the gaps in the

Operational details

Key facts

• What: The second LPP pillar in Switzerland.
• When: Since 2026.
• Where: In Switzerland.
• Who: All workers.
• Amount: The contribution is 7% (25-34 years), 10% (35-44), 15% (45-54), 18% (55 years and over).
• When: Since 2026.

Introduction to LPP

The second pillar LPP (Work, Social Security, Pension) in Switzerland is a mandatory supplementary pension system that will be introduced from 2026. This system aims to provide greater pension security to Swiss workers, particularly those who do not have access to a company pension plan or who do not have a sufficient pension reserve.

Contributions and withdrawals

Contributions to the second LPP pillar will be calculated based on the worker's age and income. The contribution rates are as follows:

• 25-34 years: 7% of income
• 35-44 years: 10% of income
• 45-54 years: 15% of income
• 55 and older: 18% of income

Contributions will be taken monthly from the worker's salary and paid into the individual pension account. Workers may also voluntarily contribute more, but will not be able to deduct contributions from the tax return.

Social security planning

Pension planning is key to optimising contributions and making sure you have a sufficient pension reserve. Workers may choose to invest their contributions in one of the following

Useful planning tools

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

Key points

LPP Guide: Contributions, Withdrawal and Social Security Planning in Switzerland

Introduction

Social security in Switzerland is a very important topic, especially for employees and employers. The second pillar of the Swiss social security system, known as the LPP (Work, Retirement, Pension), was introduced in 2013 to provide greater financial security for Swiss citizens. In this article, we will explore contributions, withdrawal and pension planning in Switzerland, providing practical and useful information for those preparing to plan their own pension.

LPP CONTRIBUTIONS

The LPP contribution is an obligation for employees and employers, with some exceptions. The contribution is calculated as a percentage of income, which varies according to the age of the worker. Here are the LPP contribution amounts for different age groups:

• 25-34 years: 7%
• 35-44 years: 10%
• 45-54 years: 15%
• 55 years and older: 18%

For example, if a 35-year-old employee earns CHF 60,000 per year, the LPP contribution would be 10% of income, or CHF 6,000 per year.

Pickup LPP

The LPP levy is another important component of the Swiss social security system. The withdrawal is calculated as a percentage of income, which varies according to the age of the worker. Here are the LPP withdrawal amounts for different age groups:

• 25-34 years: 25%
• 35-44 years: 25%
• 45-54 years: 25%
• 55 years and older:

Check tax deadlines for cross-border workers: returns, Swiss declarations, rebates — all dates in one interactive calendar.