The 0.7 percentage points were calculated by the interior ministry and the finance ministry on the basis of the validated financial outlook for the old-age pension system. The new financial outlook for the first pillar of old-age provision will not be published until Monday.
In August the government decided to finance the increase in pensions solely through VAT and to forgo additional contributions from employers and employees. The aim is to keep the pension compensation fund in balance until 2030.
According to the government’s proposal, the 13th old-age pension payment will be introduced in 2026 and will cost around CHF4.2 billion ($5 billion) in the first year and just under CHF5 billion in 2030. The government writes that the financial situation of the pension system and the federal budget requires immediate measures to finance this additional expenditure.
Not only consumers, but also the federal government should contribute to the costs of the 13th payment. The government does want to reduce the federal share of pension expenditure, but to a lesser extent than planned. As a result, the government would contribute around CHF450 million per year to the 13th pension payment from 2026.
Translated from German by DeepL/ts
This news story has been written and carefully fact-checked by an external editorial team. At SWI swissinfo.ch we select the most relevant news for an international audience and use automatic translation tools such as DeepL to translate it into English. Providing you with automatically translated news gives us the time to write more in-depth articles.
If you want to know more about how we work, have a look here, if you want to learn more about how we use technology, click here, and if you have feedback on this news story please write to english@swissinfo.ch.
NGO accuses tobacco industry and Switzerland of human rights violations
This content was published on
The anti-smoking NGO OxySuisse has accused tobacco companies of violating human rights and the Swiss authorities of being complacent.
Swiss national injured in attack on Beirut building
This content was published on
A Swiss national was slightly injured following an attack on a building in Beirut, Swiss media agency Keystone-ATS learned on Tuesday.
Kate Winslet receives Golden Icon award at Zurich Film Festival
This content was published on
British actress Kate Winslet took a dip in Lake Zurich before receiving the Golden Icon Award for lifetime achievement at the Zurich Film Festival.
Swiss President remembers victims of October 7 attack
This content was published on
One year after the attack on Israel by Hamas, Swiss President Viola Amherd remembered the victims and called for the release of all hostages.
Lausanne public transport to go all-electric by 2030
This content was published on
The company that runs public transport in the Swiss city of Lausanne intends to convert its entire fleet of vehicles to electric power within the next five years.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.