What is AHV/AVS?

The AHV (Alters- und Hinterlassenenversicherung), known as AVS (Assurance Vieillesse et Survivants) in French and AVS (Assicurazione per la Vecchiaia e per i Superstiti) in Italian, is Switzerland’s mandatory public pension system. It provides financial security for retirees and surviving dependents of deceased insured individuals.

Contributions

AHV is mandatory for all Swiss residents and workers, including employees, self-employed individuals, and non-working residents. It is funded through payroll deductions, with employees contributing 4.35% of their salary, matched by their employer. Self-employed individuals contribute between 5.4% and 10%, depending on their income, while non-employed individuals must also pay based on their financial situation.

Benefits

The system primarily provides old-age pensions, which can be claimed from age 64 for women and 65 for men, ensuring a basic income after retirement. In addition, it offers survivors' pensions for widows, widowers, and orphans, as well as disability benefits for those unable to work. For pensioners with low incomes, supplementary benefits may be available to ensure a minimum standard of living.

Role in the Swiss Pension System

AHV is part of Switzerland’s three-pillar pension system, forming Pillar 1, which is the state pension. It is supplemented by Pillar 2 (occupational pensions) and Pillar 3 (private retirement savings) to ensure comprehensive financial security in old age. The system is administered by the Swiss Compensation Office (Ausgleichskasse / Caisse de compensation), which oversees contributions and benefit distribution.