Politics · Switzerland · 1 hr ago
Swiss parties clash over how to fund the 13th AHV pension
Switzerland plans to make its first 13th AHV pension payment in December 2026.
The extra pension will cost more than four billion Swiss francs at first and later more than five billion.
The government and parliament want to raise the standard value-added tax rate by 0.4 percentage points to help pay for it.
The government says the tax rise, together with a federal contribution, would cover about half of the extra costs.
Opponents say a permanent tax increase would burden households and businesses and argue that other budget measures should be considered.
Supporters say delaying a funding decision risks the stability of the AHV pension system, while critics say structural reforms could mean raising the retirement age.
The proposed VAT increase is now the focus of a political dispute, and the sources give no final decision or next step.
The Swiss government and parliament propose raising the standard value-added tax rate by 0.4 percentage points to help fund the 13th AHV pension.
Opponents warn the increase would burden households and businesses and call for structural reforms instead.
The 13th AHV pension is due to be paid for the first time in December 2026, with costs of more than four billion francs initially and more than five billion francs later.
The proposed tax increase, together with the federal contribution, would cover about half of the additional costs, according to the government.
Politicians and representatives of business and labour debated the funding plan on SRF’s Arena programme.
- Who
- Swiss government and parliament propose the tax increase; supporters and opponents debated it on SRF’s Arena.
- What
- The debate is over how to fund the 13th AHV pension, including a proposed 0.4-percentage-point increase in the standard value-added tax rate.
- When
- The debate aired on 11 November 2026; the first 13th pension payment is due in December 2026.
- Where
- Switzerland; the debate was on SRF’s Arena.
- Why
- The pension will add costs of more than four billion francs initially and more than five billion francs later.
Supporters of the proposed VAT increase
Opponents of the proposed VAT increase
Funding approach
Supporters of the proposed VAT increase
The government and parliament propose raising the standard VAT rate by 0.4 percentage points to help fund the pension.
Opponents of the proposed VAT increase
They oppose the increase and call for structural measures or funding from existing tax revenue.
Impact and urgency
Supporters of the proposed VAT increase
Supporters say action is needed now to protect the AHV’s stability.
Opponents of the proposed VAT increase
Opponents say the increase would burden households and businesses; some favour structural reform, while the SVP president rejects raising the retirement age.
Swiss voters approved the 13th AHV pension, according to Baume-Schneider.
Supporters and opponents debated the pension’s funding on SRF’s Arena.
The first 13th AHV pension payment is due.
- Proposed VAT increase
- 0.4 percentage points
- First payment
- December 2026
- Initial pension cost
- More than four billion francs
- Later pension cost
- More than five billion francs
- Share covered by VAT increase and federal contribution
- Around half of the additional costs
What people are saying
It is also a bit in the DNA of our country that we look after everyone.
We say you can give the AHV more money, including more value-added tax revenue, but from existing tax revenues.
Going to the hairdresser will become more expensive, taking the car to the garage will become more expensive, eating a sandwich in a restaurant will become more expensive.
We must not wait until a solution is found at some point, but must solve this now, in the interests of the security of the AHV.