AVS, AI, 3rd pillar: many new rules have been in force since the start of the year. But what do they mean in practice for you? blue News explains the changes.
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In 2025, several financial changes will come into force in Switzerland and will have repercussions on the wallets of the Swiss.
But these changes are not always easy to understand. blue News gives you useful advice, explains what is behind these changes and how they affect your wallet.
AVS and AI pensions will increase
From January 1, 2025, old-age and survivors’ insurance (AVS) and disability insurance (AI) pensions will be increased by 2.9% in order to take into account the current evolution of prices and wages. This means that the minimum AVS/AI pension will increase from 1225 francs to 1260 francs per month, while the maximum pension will increase from 2450 francs to 2520 francs.
This adaptation should help maintain the purchasing power of retirees and counter the increase in the cost of living. This is the first increase in pensions in several years and is seen by many as a necessary step to guarantee social security.
In addition to pensions, other benefits such as helplessness allowance are also adapted. In the event of serious impotence, the allowance for AVS beneficiaries will increase to 1008 francs per month.
Pour more money into the 3rd pillar
The maximum tax-deductible contributions for pillar 3a are increased. For people affiliated to a pension fund (second pillar), the maximum amount increases to 7,258 francs per year. For active people without a second pillar, the maximum amount increases to 36,288 francs per year.
These adaptations allow policyholders to put more aside for their private retirement provision while benefiting from higher tax deductions.
For the first time, it will also be possible this year to repay missed contributions to pillar 3a. The condition is that income subject to AVS must have been earned during the year in question.
These subsequent payments are possible in addition to the regular annual contribution and are fully deductible from taxable income.
But be careful: the changes will only apply from 2025. This year, you will therefore not yet be able to make redemptions for past years. In practice, this means that in 2026, for example, it will be possible for the first time to carry out a retrospective redemption for the year 2025. People who have then made no payments or only partial payments can catch up these contributions retroactively for up to ten years.
More expensive car insurance
After years of falling premiums, many Swiss car owners will have to prepare to pay more for their car insurance in 2025. According to Comparis, several providers have announced premium adjustments.
Six of the thirteen insurers surveyed have announced a general adjustment of premiums for 2025. At four providers, individual premium increases are possible for existing contracts.
Adaptations to AVS contributions
The minimum annual contribution to AVS, AI and APG for people without gainful activity increases from 514 to 530 francs. For the self-employed, the lower limit of the decreasing scale of contributions is raised to 10,100 francs (compared to 9,800 francs previously) and the upper limit to 60,500 francs (compared to 58,800 francs previously).
These changes mean that people on low incomes now have to pay higher contributions. The objective is to guarantee the financing of social insurance in the long term and to respond to demographic challenges.
For employees, the contribution rate remains unchanged, but the limit for low earners is raised to 2,500 francs per year. This means that salaries up to this amount will only have to be deducted if employees wish to do so.
Increase in family allowances
The minimum rates provided for by federal law for child allowances and vocational training allowances will be increased on January 1, 2025. The child allowance will increase from 200 to 215 francs per month and the vocational training allowance from 250 to 268 francs per month.
This measure aims to provide financial relief to families and improve support for children and young people in training. This is the first adaptation of allowances since the entry into force of the law on family allowances in 2009.
The exact amount of benefits can vary from one canton to another, with some setting higher amounts. It is therefore advisable to find out about the specific amounts from the competent family allowance fund.
Health insurance premiums rise again
This year, health insurance premiums are increasing by an average of six percent. For adults, the premium will increase on average by 25.30 francs in 2025 to reach 449.20 francs. Young adults will have to pay 16.10 francs more and therefore now 314.10 francs. For children, the average premium will increase by 6.50 francs to reach 117.90 francs.
Due to the aging population and the emergence of new therapies and medications, costs will continue to increase in the future.
But those who are now considering switching funds due to rising costs are out of luck. For the year 2025, a change should have taken place before November 30 of the previous year. The next change will only be possible for the year 2026. However, it is recommended to wait for the increase in premiums in the fall before comparing.
Changes in occupational pension provision (LPP)
The threshold for access to compulsory professional insurance is raised to 22,680 francs per year. The coordination deduction increases from 25,725 francs to 26,460 francs.
These adaptations influence the calculation of the insured salary and therefore the contributions to the pension fund. Low-income employees must therefore earn more to be admitted to the LPP.
For employers, this means an adaptation of payroll accounting in order to correctly take the new limit values into account.
