BVG / Pensionskasse (Occupational Pension)
A BVG (Berufliche Vorsorge) or Pensionskasse is a mandatory occupational pension scheme for Swiss employees earning above a threshold. Employers must register eligible staff, contribute a defined percentage of salary, and choose a licensed provider. Non-compliance risks fines and legal liability.
The BVG is Switzerland's three-pillar retirement system. Pillar 1 is state AHV; Pillar 2 is the occupational pension (BVG); Pillar 3 is private savings. As an employer, you must understand and operate Pillar 2.
Your obligation arises the moment you hire an employee aged 17 or older earning at least CHF 22,050 per year (2024 threshold). Below this, affiliation is optional but often still required by collective agreements (GAV).
What a BVG does and when it applies
A Pensionskasse pools employer and employee contributions into a fund that provides retirement income, disability insurance, and survivor benefits. Employees earn a vested benefit capital that grows annually.
The threshold of CHF 22,050 applies to gross annual salary. Part-time staff on a 40% Pensum earning CHF 60,000 annually would be included. Some cantons and industries have stricter minimums through their GAV collective agreements—always check your sector's binding agreement.
- Mandatory for all employees aged 17+, earning ≥CHF 22,050/year
- Employee contributes a percentage (typically 4–8% of salary); employer matches or exceeds this
- Vested capital is locked until retirement (age 65), early withdrawal (Vorbezug) only for home purchase or self-employment
- Disability and survivor coverage included automatically
- Provider must be licensed and registered with FINMA or cantonal authorities
- Contributions are tax-deductible for the employer
Your obligations as employer
You must register each eligible employee with a licensed Pensionskasse within 30 days of hire. Choose a provider and notify staff of the plan rules, contribution rates, and benefits. Annual statements must be provided to each member.
You collect employee contributions via payroll deduction and remit both employee and employer contributions on time—usually monthly. If you fail to register or pay, the employee can claim against you personally, and cantonal authorities may impose fines.
- Register employee within 30 days of hire date
- Provide written pension plan rules and annual benefit statement
- Deduct and remit both employee and employer contributions monthly
- Keep contribution records for at least 10 years (archival obligation under Swiss law)
- Notify the Pensionskasse immediately of termination, retirement, or leave of absence
- Pay employer contribution even if employee is on sick leave or maternity leave
Most common mistake: delayed registration or wrong threshold calculation
Many SMEs delay BVG registration, believing the threshold is higher or that probation periods exempt the employee. Both are false. Registration must happen immediately upon hire, even during probation.
Another frequent error is confusing the CHF 22,050 gross threshold with net salary, or forgetting that a part-time employee on 30% Pensum earning CHF 70,000 still exceeds the threshold and must be registered. When in doubt, your Pensionskasse or a local HR consultant can confirm eligibility.
- Registering late (after 30 days) creates backdated liability and audit risk
- Assuming probation or apprenticeship exempts the employee—it does not
- Miscalculating the threshold on part-time or variable-income staff
- Choosing an unlicensed or underfunded provider without checking FINMA registry
- Failing to document and retain contribution records; auditors will ask for them
- Not informing employees of vesting schedule or early-withdrawal rules (Vorbezug)
Frequently asked questions
- Do I have to use the same Pensionskasse for all employees?
- No. You can use different providers. However, most SMEs use a single plan for simplicity and group rates. Your choice of provider must be communicated clearly to staff, and switching requires 30 days' notice to the incumbent provider.
- What happens to a departing employee's pension credit?
- Their vested capital is locked and managed by the Pensionskasse until retirement, or they can request a Freizügigkeitskonto (blocked account) or Freizügigkeitspolice (insurance policy) with another provider. They cannot withdraw cash before retirement unless buying a home or becoming self-employed.
- Are there cantons with higher BVG thresholds or stricter rules?
- The CHF 22,050 threshold is federal. However, many cantons and industry GAVs impose lower thresholds or add benefits. Check your canton's AHV office and your applicable collective agreement (if any) to confirm local rules.
General information for Swiss employers, not legal advice. Have a lawyer confirm anything with legal consequences.