⏱ 2 min 30 read
Background
In 2024, voters approved the initiative for a 13th pension payment under the old-age and survivors’ insurance (AHV/AVS). It will be paid for the first time at the end of 2026, whatever the outcome of the upcoming vote. The text did not specify how it would be funded; the Confederation estimates the cost at 4.2 billion francs in 2026. After a long debate, Parliament opted for an increase in value added tax (VAT), now put to the vote.
The key points
On 29 November 2026, Swiss voters decide on the VAT increase proposed to finance the 13th AHV pension. The standard rate would rise from 8.1% to 8.5%, and the special rate for accommodation from 3.8% to 4%. The reduced rate of 2.6%, which applies in particular to food and medicines, would remain unchanged.
The increase could take effect from 2028, according to Entreprise Romande, the newspaper of the Federation of French-speaking Swiss Businesses Geneva (FER Genève). The Confederation covers 20.2% of AHV expenditure. The balance, around 1.7 billion francs, would be drawn from the reserves of the AHV compensation fund.
Federal Councillor Elisabeth Baume-Schneider defends the measure and plays down its cost for the population, with the image of “2 centimes on a coffee”. In Valais, the remark drew nearly 600 comments on Le Nouvelliste’s Facebook page, mostly critical.
Key figures
- 4.2 billion francs : cost of the 13th AHV pension in 2026, according to the Confederation
- +0.4 point : proposed increase in the standard VAT rate, from 8.1% to 8.5%
- 20,2 % : share of AHV expenditure funded by the Confederation
- 2.6 million : AHV pensioners in 2025, compared with 1.5 million in 2001 and 3 million expected in 2030
What it means for businesses
- Retailers and service providers : the increase raises prices and squeezes margins, as it can rarely be passed on in full, according to Entreprise Romande.
- Hotels : its special rate would rise from 3.8% to 4%.
- Employers : the chosen solution avoids an increase in payroll contributions, which Parliament rejected.
Analysis
- According to Pierre Cormon (Entreprise Romande): VAT makes all residents contribute, not just the working population, and diversifies the revenue of the AHV, 70% of which is funded by contributions.
- According to Pierre Cormon : the increase remains a temporary solution, as the AHV reserves will become insufficient in around ten years.
What's next
- Federal vote on 29 November 2026.
- Possible entry into force of the increase from 2028 ; the Federal Council is preparing the AHV 2030 reform.
Further reading
Sources
- Entreprise Romande (FER Genève) – Financing the 13th AHV pension: if you missed the beginning…
- Le Nouvelliste – VAT increase: Elisabeth Baume-Schneider’s “2 centimes on a coffee” angers Valais internet users
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