BVG Entry Threshold
The BVG entry threshold is the minimum annual gross income at which you must enrol an employee in occupational pension insurance (BVG/LPP). For 2024, this threshold is CHF 23,625 per calendar year. It applies to all employment contracts lasting three months or more, regardless of Pensum percentage.
The BVG entry threshold sets the income floor for mandatory occupational pension enrolment in Switzerland. When an employee's annual gross salary reaches or exceeds this amount, your obligation to provide BVG coverage begins — typically on the first day of employment or the date salary crosses the threshold.
The threshold is set by the Swiss Federal Office of Insurance (OFAS) and adjusted annually. Each canton may also have supplementary rules, particularly regarding part-time and temporary workers. Even in cantons with no mandatory occupational pension scheme, the federal BVG threshold still applies to most employers.
When the Threshold Applies
The threshold activates for any employment contract expected to run three months or longer. If an employee starts part-time at 30% Pensum and earns CHF 25,000 annually (above threshold), BVG enrolment is mandatory from day one, not after a waiting period.
Fixed-term contracts of exactly three months or more trigger the obligation. Probationary periods do not exempt you. If you later extend a contract, reassess whether the threshold is crossed over the full calendar year.
- Threshold applies to gross annual salary, including 13. Monatslohn and other regular payments
- Part-time Pensum percentage does not exempt an employee if annual earnings exceed the threshold
- Contract must be intended to last three months or more — temporary roles lasting two months are exempt
- The threshold resets on 1 January each year; reassess each January
- Probationary periods do not delay enrolment if salary meets the threshold
- Canton-specific rules may lower the threshold; check your cantonal pension authority
Your Employer Obligation
You must enrol the employee with an approved pension fund (Vorsorgewerk) within three months of the enrolment date. The employer's contribution is typically 5–10% of salary, depending on the fund's regulations and the employee's age. You cannot unilaterally decide to skip BVG; it is mandatory.
You must provide the employee with BVG documentation: the fund's regulations, the insurance certificate, and information about benefits. Failure to enrol creates legal liability and exposes you to claims for unpaid contributions and interest. Cantonal pension authorities conduct regular audits.
- Enrol employee within three months of enrolment date (first day of employment or date threshold is crossed)
- Pay employer contribution monthly or per payroll cycle — do not deduct the full contribution from employee salary
- Provide employee with fund rules, insurance certificate, and benefit statement annually
- Check that the fund is officially registered and approved (OFAS list)
- Document enrolment in your payroll system with the effective date
- Swiss Law: Mandatory Occupational Pension Act (BVG/LPP) — consult a lawyer if you are uncertain about your fund's registration
Most Common Mistake
Employers often delay enrolment because they assume part-time employees earning modest salaries are exempt. In fact, if a part-time employee's annual gross income exceeds CHF 23,625, enrolment is mandatory — Pensum percentage is irrelevant. This mistake leads to backdated contributions and penalties when discovered.
Another trap: treating temporary or fixed-term contracts as exempt without checking the three-month rule. A four-month contract is covered; a two-month contract is not. Clarify contract duration before payroll and pension setup.
- Assuming part-time staff under 50% Pensum are automatically exempt — check annual gross income instead
- Delaying enrolment beyond three months from the enrolment date
- Confusing the three-month rule: three months or longer requires BVG; two months or less does not
- Failing to update BVG status when an employee moves from part-time to full-time mid-year
- Not verifying that your pension fund is officially registered — using unregistered schemes creates legal exposure
- Deducting the entire employer contribution from the employee's gross salary instead of paying it separately
Frequently asked questions
- Our employee works 20% Pensum and earns CHF 24,000 per year. Do we need BVG?
- Yes. Pensum percentage does not matter. Annual gross income exceeds CHF 23,625, so BVG enrolment is mandatory. You must enrol within three months of the contract start date. The employer contribution is typically 5–10% of the CHF 24,000, paid separately from salary.
- What if we hire someone for exactly two months?
- BVG is not mandatory. The obligation applies only to contracts lasting three months or longer. If you later extend the same employee beyond three months, reassess the enrolment requirement for the extended period.
- Can we pay a lower salary to avoid the BVG threshold?
- No. Deliberately setting wages below the threshold to avoid pension obligations is not compliant. Swiss law requires BVG enrolment once the threshold is crossed in the actual employment relationship. A lawyer should confirm the specific facts, but this approach exposes you to claims and penalties.
General information for Swiss employers, not legal advice. Have a lawyer confirm anything with legal consequences.