What are the LPP contribution rates by age group according to the 2026 guide?

According to the source, the LPP contributions vary from 7% to 18% depending on the age group, applicable from 25 years of age. The percentages increase progressively with age to ensure adequate social security accumulation throughout the entire work cycle.

When did the New Frontier Agreement come into force and what does it provide for workers?

The New Frontier Agreement was signed on 23 December 2020 and entered into force on 1 January 2024 (not in 2026). It provides for an exemption of €10,000 for new frontier workers, while old frontier workers (active before 17/7/2023) benefit from an exemption of €7,500 with a transitional regime valid until 2033.

How does the tax credit work in Italy to avoid double taxation on Swiss income?

Italy avoids double taxation through the tax credit to be indicated in the EC framework of declaration 730. The income tax at source is withheld exclusively in Switzerland, never in both countries, as established by the Italy-Switzerland Double Taxation Convention signed on 9 December 1976.

Second pillar LPP Switzerland guide 2026 canton Zurich (cross-border guide)

Di Laura Bianchi · Published on 8 August 2026

Pension advice for cross-border workers in Zurich office with LPP documents and Swiss flag

Guide to the second pillar LPP 2026: contributions 7-18% by age, redemption of gaps, capital levy and national comparison with a focus on the canton of Zurich

Context

In a nutshell

LPP contributions 7-18% by age group from 25 years
New Frontier Agreement in force from 1 January 2024
Double taxation agreement signed on 9 December 1976

Key facts

What it is: Second pillar Swiss LPP (compulsory occupational pension)
When: Guide 2026 with updated data to the canton of Zurich
Where: Canton Zurich, with Swiss national reference
Who: Employees and border workers in Switzerland
Amount: LPP contributions 7-18% by age group, AVS/AI/IPG 5.3% employee

The 2026 guide to the second LPP pillar in Switzerland provides up-to-date information on mandatory occupational pension contributions, with particular reference to the canton of Zurich. According to the verifiable data of the source, the LPP contributions vary from 7% to 18% according to the age group, applicable from 25 years of age. This system constitutes the second pillar of Swiss social security, next to the AVS/AI (first pillar) and the optional third pillar.

The source also specifies the Swiss contribution rates: AVS/AI/IPG at 5.3% borne by the employee, AD/AC at 1.1% (with a maximum ceiling of CHF 148'200), LAINF between 0.7% and 1.5%, in addition to the already mentioned LPP contributions. With regard to Italian taxation relevant to frontier workers, IRPEF applies progressive rates of 23% up to €28,000, 35% between €28,001 and €50,000, and 43% over €50,000.

With regard to international agreements, the source cites the

Operational details

National comparison: LPP in Switzerland and focus canton Zurich

At the national level, the Swiss LPP second pillar provides for mandatory contributions calculated on the coordinated salary, with percentages that increase with age: from 7% for young workers to 18% for those close to retirement. This mechanism aims to ensure adequate capital accumulation throughout the working life.

In the canton of Zurich, as in all Swiss cantons, compliance with the minimum PPIS is supervised by the cantonal occupational pension authorities. However, Zurich stands out for some practical features: it offers a wide range of pension funds to choose from, often with competitive management fees, and has cantonal offices specialised in supporting employers in affiliating and complying with LPP obligations.

An important aspect for border workers concerns the coordination between Switzerland and Italy. While in Switzerland the aforementioned tax rates apply (AVS/AI/IPG 5.3%, AD/AC 1.1%, LAINF 0.7-1.5%, LPP 7-18%), in Italy frontier workers benefit from the tax credit to avoid double taxation, as required by the EC framework of declaration 730. Tax at source is only withheld in Switzerland, never in both countries.

With regard to the redemption of social security gaps, the LPP allows you to pay additional voluntary contributions to fill periods of lower contribution or interruptions

Useful tools for your case

To verify your within/over 20 km tax scenario, use the net salary calculator and the tax return guide.

Key points

How to plan your LPP pension in 2026

To better manage your second LPP pillar in Switzerland, follow these practical steps:

1. Check your coordinated salary and age group to calculate the LPP contribution due (7-18%) 2. Check your annual LPP statement sent by your employer's pension foundation 3. Consider whether to make voluntary payments to redeem any social security gaps 4. Compare withdrawal options (annuity, equity, or mixed) based on your retirement goals 5. If you are a border worker, coordinate the tax return in Italy using the EC framework of 730 for the tax credit

To learn more about your personal situation, use the tools available on the site:

Salary calculator to verify AVS, LPP and tax contributions
Guide to the third pillar 3a for optional social security supplements
LAMal/KVG sick pay comparator for compulsory health insurance

Remember that LPP contributions are mandatory for all employees with wages above the entry limit (regularly updated). Self-employed people can voluntarily join the second pillar through dedicated pension funds. If you have any questions about your social security positions, consult the information service of your pension foundation or the cantonal office in Zurich responsible for LPP supervision.

Frequently Asked Questions

What are the LPP contribution rates by age group according to the 2026 guide?: According to the source, the LPP contributions vary from 7% to 18% depending on the age group, applicable from 25 years of age. The percentages increase progressively with age to ensure adequate social security accumulation throughout the entire work cycle.
When did the New Frontier Agreement come into force and what does it provide for workers?: The New Frontier Agreement was signed on 23 December 2020 and entered into force on 1 January 2024 (not in 2026). It provides for an exemption of €10,000 for new frontier workers, while old frontier workers (active before 17/7/2023) benefit from an exemption of €7,500 with a transitional regime valid until 2033.
How does the tax credit work in Italy to avoid double taxation on Swiss income?: Italy avoids double taxation through the tax credit to be indicated in the EC framework of declaration 730. The income tax at source is withheld exclusively in Switzerland, never in both countries, as established by the Italy-Switzerland Double Taxation Convention signed on 9 December 1976.