Employees who have reached the regular retirement age and continue to be gainfully employed earn income that is subject to AHV contributions. The AHV provides for tax-free amounts of CHF 1,400 per month or CHF 16,800 per year. No AHV contributions are due for this portion of the earned income. These allowances apply to each individual employment relationship. Nevertheless, this is income subject to AHV contributions. Accordingly, female employees can pay into the pillar 3a up to the age of 69 and male employees up to the age of 70, as long as they provide proof of the work activity performed.
Persons who are affected by unemployment and receive unemployment compensation thus receive income subject to AHV contributions, from which AHV contributions are deducted. If the daily allowance from the unemployment insurance is more than CHF 82.60, unemployed persons are compulsorily insured via the Stiftung Auffangeinrichtung BVG and can pay the maximum amount for employees into the pillar 3a. For daily allowances of less than CHF 82.60, the maximum amount of 20% of the net income applies. Payments into the pillar 3a may not exceed the earned income (incl. unemployment benefits). As soon as a person no longer receives unemployment benefits and is disenrolled, no more deposits may be made into the pillar 3a in the following year, since no more income subject to AHV is earned in this following year.
Spouse / registered partner
Payments into the pillar 3a are possible – irrespective of the matrimonial property regime – for married persons and persons in a registered partnership, provided they earn income subject to AHV contributions. For the partner who does not have an income from gainful employment subject to AHV, it is not possible to pay into the pillar 3a.
For the purposes of the AHV, disability pensions do not count as income from gainful employment. If DI recipients do not earn any additional income subject to AHV, they cannot pay into the pillar 3a.
Income from gainful employment according to the simplified accounting procedure
If a person receives income that is paid out according to the simplified accounting procedure, they receive income that is subject to AHV. This income must be recorded in the tax return despite taxation at source. However, it is no longer taxed. No tax deductions are granted on income according to the simplified accounting procedure. Therefore, payments into the pillar 3a cannot be deducted.
Special cases with connection to the pillar 3a
The following persons may join a pillar 3a solution:
- Persons who work abroad for an employer subject to the AHV obligation.
- Members of international organizations whose earned income is subject to AHV contributions.
- Swiss diplomats abroad who are subject to Swiss tax and AHV.
- Cross-border commuters residing in Switzerland and working abroad whose earned income is taxed in Switzerland if they voluntarily contribute to the AHV scheme.
Special cases without connection to the pillar 3a
The following persons may not join a pillar 3a solution:
- Cross-border commuters with residence in Switzerland and place of work abroad, whose earned income is taxed in Switzerland and at the same time is exempt from the AHV obligation (exception Liechtenstein).
- Taxpayers domiciled in Switzerland who work in Switzerland for a foreign employer, are taxed in Switzerland for this earned income, but are exempt from compulsory AHV on the basis of a decision by the competent AHV or on the basis of an international agreement (except in the case of voluntary AHV insurance).
- Foreign diplomats in Switzerland who are not subject to AHV.
- Members of international organizations with subjective tax exemption, provided they are not AHV-insured.
VIAC does not offer tax advice and recommends to clarify tax matters in advance with a tax expert and/or the cantonal tax authority in any case. Although VIAC has carefully researched the above content and information, no guarantee can be given for its correctness and completeness. Any liability is rejected.