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Retirement Provision

The Council of States Approves a Compromise on Funding for the 13th AHV Pension

It is now certain that the 13th pension will be paid out. The Council of States has approved financing through payroll contributions and value-added tax, but the National Council has yet to give its approval. (File photo)

It is now certain that the 13th pension will be paid out. The Council of States has approved financing through payroll contributions and value-added tax, but the National Council has yet to give its approval. (File photo)

Keystone

The 13th AHV pension is to be financed through payroll contributions and an increase in the value-added tax. The Council of States has approved the proposal from the Conciliation Conference. However, the National Council, which wants only the value-added tax increase, has not yet made a decision.

Keystone-SDA

Keystone-SDA

11.06.2026, 08:44

On Thursday, the Council of States backed the Conciliation Conference’s proposal for higher payroll contributions to the AHV by a vote of 26 to 19. It approved the VAT increase by a vote of 26 to 18, with one abstention.

This was to be expected, as the proposals aligned with its preferred mixed financing model, albeit with lower wage contributions.

According to the compromise proposal, the AHV payroll contribution is to be increased by 0.2 percentage points. The Council of States had previously decided on an increase of 0.3 percentage points. The value-added tax will be raised—indefinitely—by 0.4 percentage points.

Whether the bill fails or passes now depends on the National Council. It had previously approved a temporary increase in the value-added tax until 2033 and rejected higher wage contributions.

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The Council of States Approves a Compromise on the Financing of the 13th AHV Pension