When do you vote on the VAT increase for the 13th AVS?

The Swiss people and cantons will be called to vote on 29 November. In order for the project to be approved, the yes of both components (people and cantons) is necessary.

What are the VAT rates affected by the increase?

The normal rate would go from 8.1% to 8.5%. The rate for the hotel sector would increase from 3.8% to 4%. The reduced rate, applied to everyday goods such as food and medicines, would remain unchanged at 2.6%.

How much does the 13th AVS cost and what will be the revenue from the VAT increase?

The 13th HSV will require financing of CHF 4.2 billion per year, with forecasts of an increase to CHF 4.5 billion in 2030 and CHF 5.4 billion in 2040. The planned increase in VAT will generate an annual revenue of about CHF 1.5 billion.

What are the positions of the Government and the opponents?

The Government and the Federal Chambers consider the proposal a socially sustainable compromise, balanced between generations. A parliamentary minority and the PLR, who fear a weakening of purchasing power and an excessive burden on families and SMEs, are opposed, proposing structural measures such as increasing the retirement age.

VAT increase for the 13th AVS pension

Di Marco Ferrari · Published on 5 October 2026

Swiss Federal Palace in Bern, seat of the government and parliament.

On 29 November, voters will decide on increasing VAT from 8,1% to 8,5% to finance the 13th AVS pension, which requires 4,2 billion francs annually.

Context

In brief

On November 29, the people and the Cantons will vote on the VAT increase
The standard rate would rise from 8.1% to 8.5%
The 13th AVS pension requires 4.2 billion francs
Payment is scheduled for early December

Key facts

Popular vote → November 29
Financing requirement → 4.2 billion francs
Annual revenue from the increase → 1.5 billion francs
Current standard VAT rate → 8.1%
Rate for the hotel sector → 4%
Reduced rate unchanged → 2.6%

On November 29, the people and the Cantons will vote on the VAT increase necessary to finance the 13th AVS pension. A 'yes' from both is essential for the project to pass.

The planned increase is 0.4 percentage points on the standard rate: from the current 8.1% to 8.5%. The goal is to avoid an excessive burden on the AVS coffers, while the payment of the additional pension is scheduled for early December.

To finance the benefit, requested by a popular initiative approved at the polls in 2024, 4.2 billion francs are needed. The requirement is expected to rise to approximately 4.5 billion in 2030 and 5.4 billion in 2040. The VAT increase would generate 1.5 billion francs per year.

The Government's position

According to Keystone-ATS, Federal Councillor Elisabeth Baume-Schneider presented the campaign to the media. She argued that a rejection on November 29 would have serious consequences and that, without additional flows, the AVS would find itself in an increasingly precarious financial situation.

«a 'no' on November 29 would have serious consequences»

The Federal Councillor defined the 'yes' at the polls as important and indicated the proposal resulting from parliamentary deliberations as a socially sustainable compromise. The Government and the Chambers consider it balanced because all generations would contribute to guaranteeing the 13th AVS and a certain balance of accounts.

The compromise provides for a moderate increase in the standard rate and the transition of the rate for the hotel sector from 3.8% to 4%. The reduced rate remains at 2.6% for daily goods, including food and medicines. According to Baume-Schneider, this approach would lighten the burden on economically weaker individuals and families.

A minority in Parliament and the FDP oppose the proposal. The former fears a weakening of purchasing power and points to structural measures, such as an increase in the retirement age, currently set at 65 for everyone. The FDP, on the other hand, believes that the increase would weigh heavily on families and SMEs. To follow the topic of the pension, the AVS guide is available.

Operational details

Two scenarios for the AVS accounts

The Confederation's estimates reveal a concrete difference between the two outcomes of the consultation. If the ballot boxes were to reject the financing, the annual deficits of the first pillar would rise to almost 5 billion by 2035. With the VAT increase, the same figure could be reduced to around 3 billion.

Outcome
Outcome	Annual deficit in 2035	AVS fund in 2035
Rejection at the ballot box	almost 5 billion francs	around 50%
VAT increase	around 3 billion francs	around 70%

The AVS fund adds a second indicator. As early as 2027, it risks falling below the threshold provided for by law of 100% of annual expenditure. In 2035, according to the estimates cited, the level would be around 50% without the increase and 70% with the new revenue. The comparison therefore concerns both the current deficit and the fund's assets.

Rates and purchasing power

From the perspective of households, the proposal does not modify all rates in the same way. The standard rate would rise from 8,1% to 8,5%, the rate for the hotel sector would increase from 3,8 to 4%, while the reduced rate would remain at 2,6% for everyday goods, including food and medicines.

This distinction supports Baume-Schneider's argument that the solution is socially sustainable. The opposing view is that of the parliamentary minority and the FDP: a higher VAT would weaken purchasing power, burdening households and SMEs. The cost of living thus enters the debate through the differing assessment of the levy and the structural alternatives.

The proposal compares an increase in revenue with the possibility of intervening on the retirement age, currently set at 65 for everyone. To explore the impact on the household budget in greater depth, see costo della vita in Svizzera.

Useful planning tools

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

Key points

How to orient yourself before the vote

For those who live or work in Switzerland, a practical assessment of the proposal can follow four checks, all linked to the data cited in the campaign.

Three practical checks

1. Note the date and the parties involved. On November 29, the decision lies with the people and the Cantons: the proposal requires approval from both components.

2. Separate the rates. The planned increase is 0,4 percentage points, from 8,1% to 8,5% for the standard rate. The rate for the hospitality sector would rise from 3,8 to 4%, while the reduced rate would remain at 2,6% for everyday goods, food and medicines.

3. Set out the amounts. Financing requires 4,2 billion francs; the need is expected to reach 4,5 billion in 2030 and 5,4 billion in 2040. New revenue is estimated at 1,5 billion a year.

4. Compare the positions. The Government and the Chambers describe the solution as balanced and socially sustainable. The parliamentary minority and PLR, however, point to purchasing power, the burden on families and SMEs, and the possibility of structural measures.

Payment of the 13th pension is scheduled for early December. This date should be kept distinct from the November 29 vote: the former concerns the payment indicated in the source, the latter the funding needed to support it.

To follow pension-related matters, you can consult guida alla rendita AVS. To assess your own financial leeway, use calcolatore stipendio.

Source: swissinfo.ch

Frequently Asked Questions

When do you vote on the VAT increase for the 13th AVS?: The Swiss people and cantons will be called to vote on 29 November. In order for the project to be approved, the yes of both components (people and cantons) is necessary.
What are the VAT rates affected by the increase?: The normal rate would go from 8.1% to 8.5%. The rate for the hotel sector would increase from 3.8% to 4%. The reduced rate, applied to everyday goods such as food and medicines, would remain unchanged at 2.6%.
How much does the 13th AVS cost and what will be the revenue from the VAT increase?: The 13th HSV will require financing of CHF 4.2 billion per year, with forecasts of an increase to CHF 4.5 billion in 2030 and CHF 5.4 billion in 2040. The planned increase in VAT will generate an annual revenue of about CHF 1.5 billion.
What are the positions of the Government and the opponents?: The Government and the Federal Chambers consider the proposal a socially sustainable compromise, balanced between generations. A parliamentary minority and the PLR, who fear a weakening of purchasing power and an excessive burden on families and SMEs, are opposed, proposing structural measures such as increasing the retirement age.