Social security is on the move – as shown by numerous referendums, the Worry Barometer and the (social) media. We will keep you up to date on what will be decisive this year.

Limits, key figures and contributions 2025

With the adjustment of the AHV maximum pension, all BVG limits will also increase in accordance with the familiar system. The minimum contribution, the limits of the decreasing contribution scale for self-employed persons and the contributions for persons not in gainful employment will also increase.

For the first time in several years, the threshold for low salaries will also be adjusted – from CHF 2,300 to CHF 2,500 per year. Annual salaries up to this limit only have to be subject to AHV contributions at the request of the employee.

The BVG minimum interest rate remains unchanged at 1.25 percent.

AHV 21

Pensioner allowance

Employees of reference age have until before the first salary run of the new year to change their choice of pensioner allowance. Unless otherwise notified, the election made in 2024 will continue to apply for 2025.

Employers are not obliged to inform the employees concerned about this right of choice. However, active communication can help to prevent ambiguities.

Employees who reach the reference age in the course of 2025 can make their choice until the following salary run.

Women’s retirement age

The first step towards equalizing the retirement age for women will be implemented in 2025: Women born in 1961 will reach the reference age of 64 years and 3 months.

Family allowances

The minimum amounts for family allowances will increase from 2025: The child allowance will now be CHF 215 (instead of CHF 200) and the education allowance CHF 268 (instead of CHF 250). Cantons with previously lower rates will have to adjust them accordingly.

Private share of e-vehicles

If employees receive an e-vehicle from their employer, a private charging station (wallbox) is often also installed. If the employer covers the costs for this, the question arises as to how this benefit should be correctly taken into account as a private share. New social security regulations will apply from 2025.

Until the end of 2024, the expenses for the charging station and installation were to be fully included in the calculation of the private share.

Example:

From 2025, the costs will constitute relevant wages. This means that they must be settled once as wages at the time of purchase.

Example:

*Any other deductions such as NBUV or KTG are to be taken into account analogously for the gross calculation

The net salary is CHF 205.15 lower than in a standard month, which corresponds to the social security contributions on the invoiced value of the charging station. The monthly private contribution is slightly lower than in 2024, as the value of the wallbox no longer has to be included.

There is no transitional regulation. Charging stations purchased before 2025 do not have to be charged retrospectively, but can be excluded when recalculating the private share.

Salary statement and expense regulations

Compensation for business trips with a private vehicle

As of May 1, 2024, the Swiss Tax Conference (SSK) has introduced a template that allows companies to reimburse business trips with a private vehicle on a flat-rate basis. The basis for this is the recording of kilometers driven in a representative period, which must be reviewed regularly.

The lump sum must be declared in the salary statement under item 13.2.2; field F must also be marked with a cross.

Important: The journey to work must not be taken into account when calculating the number of kilometers. However, if the lump sum is applied, there is no entitlement to a deduction for commuting costs.

Limitation of flat-rate representation expenses

The updated model regulations of the Swiss Tax Conference (SSK), valid since May 1, 2024, set clear upper limits for lump-sum expenses. In principle, all cantons recognize approved expense regulations.

Example: “Arbeitgeber AG” pays its management member Katherine CHF 1,200 per month in lump-sum entertainment expenses. As the company’s canton of domicile has approved the corresponding expense regulations, the tax authorities at Katherine’s place of residence are also generally bound by the approved limits.

However, there is now a restriction on this binding effect: if the monthly lump-sum expenses exceed CHF 500, they may not exceed 5 percent of the gross salary. In addition, an absolute maximum amount of CHF 2,000 per month applies. If one of these values is exceeded, the excess amount is no longer covered by the approved regulations. In this case, the canton of residence can offset the excess amount as taxable income – especially if there are reasonable doubts about the actual amount of expenses.

Note: All lump-sum expenses must be listed in the salary statement under item 13.2 with the amount. If there are approved expense regulations, the following note must also be made in section 15:
“Expenses regulations approved by Canton XY (license plate number) on … (date)”, provided the regulations are applicable to the receiving person.

Purchase into pillar 3a

From 2025, it will be possible to make up missed payments into pillar 3a (gaps) and claim them for tax purposes. However, this so-called purchase option is subject to strict conditions:

• Purchases are only possible from 2026 – and only for gaps that have arisen since 2025. Earlier contribution gaps cannot be closed retrospectively.
• The purchase amount per year is limited to the small maximum amount, regardless of whether a pension fund exists or not.
• A purchase is only permitted if the maximum amount for the current year has already been paid in full.
• Only one purchase is possible per contribution year. If an amount is paid in that is lower than the gap, the unused balance is forfeited permanently.
• Gaps can only arise for years in which income subject to AHV contributions was earned – i.e. only if there was a basic entitlement to Pillar 3a.
• No more purchases are possible after a capital transfer in accordance with Art. 3 para. 1 BVV 3.

An application is required, whereby all requirements must be proven. It is therefore advisable to carefully store salary statements and relevant receipts for several years.

Conclusion and outlook

Social insurance law will remain in flux in 2025:
The financing of the approved 13th AHV pension (first paid out in December 2026) is on the agenda. In addition, widows’ and widowers’ pensions are to be adapted to today’s realities of life – with entry into force planned for 2026. The decapping of AHV pensions for married couples is also an issue: a draft message is expected in 2025, although the Federal Council rejects the proposal. Several initiatives are also pending in the area of occupational pensions.

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