Occupational Pension in compliance with the BVG (pension fund)

The occupational pension in compliance with the BVG* (pension fund)

*Federal Law on Occupational Retirement, Survivors' and Disability Pensions


As an employer, you must deal with setting up an occupational pension (pension fund) for your employees.

There are often questions about this:

  • Which employees must you insure in compliance with the BVG?

The BVG is indeed compulsory but not for everyone: Only employees with an annual salary of over CHF 20,880.00 must be insured in accordance with the BVG. Invalidity and death are insured from 1st January of the year, in which the employee turns 18. From the 25th year of age, it is also compulsory to save for retirement. In addition, each insured person saves his or her own individual occupational pension capital. This will be converted into a retirement pension one day. At least half of the amounts must be paid by the employer.

  • What part of the wage is insured by the BVG?

It is compulsory for the BVG to insure wages between CHF 20,880.00 and CHF 83,520.00. Higher and lower wages do not have to be taken into account. However, they can be voluntarily included. To avoid any crossover of benefits with the 1st pillar (AHV/IV), the “coordination deduction” of CHF 24,360.00 is deducted from the gross wage. What remains is called the “insured wage” or “coordinated wage”.


Do you have any further questions? Or would you like an individual consultation about occupational pensions within your company? We are here to help you!

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The staff welfare plan is part of the social provisions in Switzerland. This includes: