Provision for part-time work

More and more people are working part-time in Switzerland. However, reduced working hours can lead to gaps in provision. It is therefore worthwhile to think early about the consequences and possibilities regarding provision when working part-time. We provide you with tips on this.

Check missing contribution years for AVS

Each year, at least CHF 503 must be paid into the AVS. For married individuals, the obligation to contribute is generally waived if the spouse is employed and pays sufficient contributions into the AVS. For each missing contribution year, the retirement pension is proportionally reduced. Owed contributions can be paid within five years. It is therefore worthwhile to check whether you have missing contribution years. Request an extract from your "individual account" from the competent AVS compensation fund.

Check insured salary

To determine the salary insured by the pension fund, the coordination deduction (currently CHF 25,095) is subtracted from the income. This strongly disadvantages part-time employees with lower wages. Employers have the option to adjust the coordination deduction proportionally to the degree of employment and thus accommodate part-time employees. Therefore, check the part-time friendliness of your employer and ask for a reduction of the coordination deduction.

Buying into the pension fund

Missing years of BVG contributions or years with lower income can be compensated by voluntary purchases into the pension fund. This improves your retirement pension and simultaneously reduces your tax burden.

Contribution to Pillar 3a

Pay at least part of the maximum amount into Pillar 3a every year. Missed years cannot be made up for and you even save taxes with a payment. It is also important that you carefully choose your provision product and pay attention to the yield.

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