AHV – Old Age and Survivors‘ Insurance

Principles
The AHV was established in 1948 and is a compulsory social insurance scheme for all persons who live and work in Switzerland. Together with the IV and EO it forms the first pillar of the three-pillar system.

Objective
After retirement, the AHV pension is intended to guarantee a minimum standard of living. When the insured dies, the survivors receive survivors’ benefits.

Obligation to pay contributions
All gainfully employed persons must pay contributions to the AHV from 1 January following their 17th birthday. Persons who are not gainfully employed must pay contributions from 1 January following their 20th birthday.

Salary deductions
A monthly AHV contribution of 4.2% is deducted from the gross salary of every employee (total 5.125% for AHV, IV and EO). Employers pay the same amount to the AHV. The AHV contribution rate for self-employed individuals is 7.8% of their taxable income (total 9.65% for AHV, IV and EO). In the case of low income, a reduced AHV/IV/EO contribution rate applies. Gainfully employed persons who have reached retirement age only pay contributions on the income that exceeds CHF 1’400.– per month (CHF 16’800.– per year).

Retirement age
The regular retirement age is 65 for men and 64 for women. Entitlement to retirement benefits begins on the first day of the month following the 65th (men) or 64th (women) birthday. For the first pillar, retirement benefits are always paid out in the form of a pension.

Entitlement
Spouses and registered partners and surviving children are entitled to survivors’ benefits.

More information
More details on the AHV are provided in our Guidelines.

Application
Apply here for 1st pillar insurance.