Swiss VAT to rise by 0.7 points to finance 13th pension payment

VAT is to be increased by 0.7 percentage points in Switzerland to finance the 13th monthly pension payment. This payment will be introduced in 2026. +Get the most important news from Switzerland in your inbox The 0.7 percentage points were calculated by the interior ministry and the finance ministry on the basis of the validated financial outlook for the old-age pension system. The new financial outlook for the first pillar of old-age provision will not be published until Monday. + Swiss vote: ‘yes’ to higher pensions, ‘no’ to retiring later In August the government decided to finance the increase in pensions solely through VAT and to forgo additional contributions from employers and employees. The aim is to keep the pension compensation fund in balance until 2030. According to the government's proposal, the 13th old-age pension payment will be introduced in 2026 and will cost around CHF4.2 billion ($5 billion) in the first year and just under CHF5 billion in 2030. The government ...