From what salary total is there an obligation to join a pension fund?

All employees who are older than 17 years and are employed must generally join a pension fund (risk insurance for disability and death from age 17, retirement insurance from age 25 onwards). However, there are exceptions and special cases to this rule.

Only employees with a salary lower than the minimum annual salary (entry threshold) are not required to join a pension fund. This minimum annual salary is periodically determined by the Federal Council. For the year 2012, it is CHF 20,880.-.The law on occupational pensions (BVG) prescribes minimum benefits. It is a minimum law, which means that more comprehensive solutions can be decided at the company level and implemented in the pension fund. Thus, it is quite possible that the minimum annual salary (entry threshold) can be reduced or abolished, and the upper capping can be raised. This means that even individuals with lower incomes are insured under occupational pensions.

Good to know: BVG obligation for part-time positions and during the probation period

BVG obligation for a part-time job

If someone works part-time or pays out only a small salary (often the case with newcomers to business), that person needs to be BVG insured only if the annual income is above the minimum annual salary (i.e., more than CHF 20,880.-).

BVG obligation during the probation period

A person must be insured under BVG if they enter into an employment relationship of more than three months or of unlimited duration. Agreeing to a probation period does not waive the insurance obligation, even if the employment relationship is terminated during the probation period.