Pension and inflation adjustments in the 1st and 2nd pillars

OASI and IV pensions will be adjusted as at 1 January 2023 to reflect inflation and salary developments. The increase amounts to 2.5%. The maximum basic retirement pension and the full disability pension will thus increase from CHF 28,680 to CHF 29,400. Widow’s and widower’s pensions, orphan’s pensions and children’s pensions will also go up, with the OASI and IV attendance allowance and the supplementary benefit covering basic necessities likewise being adjusted in line with inflation.

Salaried employees’ contributions for OASI, IV and LEC remain unchanged. In contrast, the minimum contribution for the self-employed and those not in gainful employment will increase from the current level of CHF 503 to CHF 514. The declining contribution scale for the self-employed will now be applied to salaries between CHF 9,800 (formerly CHF 9,600) and CHF 58,800 (formerly CHF 57,400).

By law, current survivors’ and disability pensions – but not retirement pensions – under the compulsory occupational benefit scheme must also be periodically adjusted for inflation. Depending on when the pension was first paid out and on any adjustments made in prior years, the increase here will amount to between 2.8% and 4.2%.

In parallel with the increase in OASI pensions, the limiting amounts for occupational benefits will also be raised.

Higher maximum amounts in tax-privileged 3a savings schemes

From 2023, gainfully employed persons in an occupational pension fund will be able to pay a maximum of CHF 7,056 (formerly CHF 6,883) into their 3a scheme. Gainfully employed persons not in an occupational pension fund can pay in up to 20% of their net income from employment, but no more than CHF 35,280 (formerly CHF 34,416).

New in LEC: adoption leave – and an increase in maximum compensation

From 1 January 2023, persons who are gainfully employed and who adopt a child und the age of four are entitled to two weeks of paid adoption leave. This does not apply if the adopted child is a step-child. The provisions governing compensation are modelled on those already in place for maternity, paternity and care leave.

If both parents are gainfully employed, they can divide the leave between themselves however they choose. The compensation amounts to 80% of the most recent income earned – prior to the day the child is adopted – but no more than CHF 220 per day. The maximum amounts for maternity, paternity and care leave are similarly being increased to CHF 220, from their current level of CHF 196. Compensation for military service or civil defence is also being raised.

In view of the low number of cases, the adoption compensation must be applied for centrally from the Federal Compensation Office and not – as would otherwise be the case – from the compensation fund responsible for the parents.

The LEC contribution rate remains unchanged at 0.5% of the OASI salary.

Solidarity levy of one percent for unemployment insurance being abolished

This contribution, applicable to salaries over CHF 148,200, is being abolished with effect from 2023. For details, please see the media release from the Federal Council.