Pension Fund

Principles

In addition to the 1st pillar (AHV/IV/EO), the Pension Fund (employee benefits insurance) provides the 2nd pillar for the Swiss social insurance system. The employee benefits insurance is governed by the provisions of the Federal Law on Occupational Retirement, Survivors’ and Disability Pension Plans (BVG). The hotel and catering industry is also subject to the provisions of the collective labour agreement for the hotel and catering industry (L-GAV) (art. 27). The BVG sets out the minimum provisions that apply to the mandatory 2nd pillar insurance. 

Mandatory/Extra-mandatory

The mandatory employee benefits insurance under the BVG defines the people to be insured and the minimum benefits. Gross annual salaries of up to CHF 85’320.– are insured under the BVG.

Extra-mandatory employee benefits insurance can be taken out if higher salaries (more than CHF 85’320.– per year) and/or benefits more generous than the statutory minimum should be insured.

Contributions

An amount determined by the Federal Council (coordination deduction) is deducted from the gross salary. The remaining salary is called the «coordinated» or «pensionable» salary. The contributions to the Pension Fund are deducted from this pensionable salary. The percentage of the contributions depends on the Pension Fund or insurance company on the one hand and on their pension plans on the other.

More information

More information on Pension Funds (employee benefits insurance) is provided in our Guidelines and in the «My Pension Fund» brochure.