Contribution rates as of 1 January 2021
In the referendum on 27 September 2020, the proposal for two weeks paid paternity leave was adopted. The amendment of the Loss of Earnings Compensation Act (LEC) will come into force on 1 January 2021 and results in an increase in the EO contributions.
|EO/ AC from 01.01.2021||0.25%||0.25%||0.50%|
|EO/ AC until 31.12.2020||0.225%||0.225%||0.45%|
|Total social security rate as of 01.01.2021||5.30%||5.30%||10.60%|
The minimum social security contributions for self-employed people will increase from 5,344 % to 5.371 % and the maximum contributions from 9,95% to 10.00%.
The minimum social security annuity will increase from CHF 1'185 to CHF 1'195 per month and the maximum pension from CHF 2'370 to CHF 2'390. The maximum pension for a married couple will increase from CHF 3’555 to CHF 3'585 per month.
For the 2nd pillar (occupational benefits) and the 3rd pillar (individual retirement account) the following applies:
|From 01.01.2021||Until 31.12.2020|
|Entry threshold for pension contributions||CHF 21'510||CHF 21'330|
|Coordination deduction deducted per year||CHF 25'095||CHF 24'885|
|Pillar 3a maximum deduction||CHF 6'883||CHF 6'826|
Please make sure the changes are reflected in your Hypo tax calculations as well as your cost projections going forward.
If you would like to discuss more on this topic, please do reach out to our key contacts below.