Swiss BVG Second Pillar 2026: How Your Pension Credits Work
BVG credit rates by age (2026)
| Age band | Total credit rate | Employee share (50%) |
|---|---|---|
| 25 to 34 | 7% | 3.5% |
| 35 to 44 | 10% | 5% |
| 45 to 54 | 15% | 7.5% |
| 55 to 64/65 | 18% | 9% |
| Under 25 | 0% (risk cover only) | 0% |
Employers must by law contribute at least as much as the employee. In practice many pension funds credit more than the statutory minimum for higher earners (the Überobligatorium above the CHF 64'260 maximum coordinated salary).
How the coordinated salary is calculated
Your BVG base is not your full gross salary. It is the coordinated salary:
- Start with your annual gross salary.
- Subtract the coordination deduction: CHF 26'460.
- The result must be at least CHF 3'780 and at most CHF 64'260.
If your salary is below the BVG entry threshold of CHF 22'680 you are not required to participate in the occupational pension scheme, though some employers include all employees voluntarily.
Worked examples
| Age | Gross salary | Coordinated salary | Credit rate | Total credit | Employee share/year |
|---|---|---|---|---|---|
| 28 | CHF 80'000 | CHF 53'540 | 7% | CHF 3'748 | CHF 1'874 |
| 35 | CHF 100'000 | CHF 64'260 | 10% | CHF 6'426 | CHF 3'213 |
| 45 | CHF 120'000 | CHF 64'260 | 15% | CHF 9'639 | CHF 4'820 |
| 55 | CHF 120'000 | CHF 64'260 | 18% | CHF 11'567 | CHF 5'783 |
What happens to the credits
BVG credits accumulate in your individual retirement savings account held by your employer's pension fund (Pensionskasse). The law requires the fund to credit at least 1% interest (BVG minimum rate) on the mandatory savings each year. Many funds offer higher rates on the mandatory portion and negotiate rates on the supra-mandatory portion. On retirement you can typically choose between a lump sum, a lifetime pension (Rente), or a combination. Most cantons allow up to 50% as a lump sum; some allow 100%.
The three pillars in context
The BVG is the second of Switzerland's three pillars:
- Pillar 1 (AHV/IV): State pension; the 5.3% employee premium you see on your payslip. Designed to cover basic needs.
- Pillar 2 (BVG): Occupational pension; mandatory for employees above the entry threshold. Designed to maintain your accustomed standard of living combined with Pillar 1.
- Pillar 3 (private provision): Voluntary private savings; Pillar 3a is tax-privileged (deduction limit CHF 7'258 for employees in 2026).
Frequently asked questions
What happens to my BVG savings if I leave Switzerland?
If you leave Switzerland permanently for a country outside the EU/EFTA, you can withdraw your vested BVG benefits in cash (subject to withholding tax). If you move to an EU or EFTA country you must leave the insurance component (risk premiums) in a vested-benefits account in Switzerland and can only transfer the savings capital to a qualifying pension scheme in your new country. Partial cash withdrawal rules apply. Check with your pension fund (Pensionskasse) before leaving.
What is the coordinated salary and why does it matter?
The coordinated salary (koordinierter Lohn) is your actual salary minus the coordination deduction (Koordinationsabzug) of CHF 26,460 in 2026. BVG credits are only calculated on this coordinated portion, not your full salary. The deduction exists because the first pillar (AHV) is assumed to cover a base level of retirement income. The minimum coordinated salary is CHF 3,780; the maximum is CHF 64,260.
Is the BVG credit rate fixed or can it vary?
The rates in the table above are the statutory minimums set by law. Employers and pension funds are free to offer higher rates (Überobligatorium). Many large Swiss employers provide pension plans that significantly exceed the BVG minimums, particularly for higher earners above the coordination threshold.
Source: BSV BVG-Merkblatt 2026; coordination deduction and entry threshold from SBFI official tables. Last updated 2026-11-04.