Glossary
The compensation office calculates OASI/DI/ICO contributions based on your pension and your net assets. For married couples, the calculation is based on half of the combined pension income and half of the joint marital assets. You can find the online contribution calculator here.
You receive these credits if you provide care for relatives. Certain eligibility criteria apply. Care credits are notional earnings that increase your state pension. You must apply for these credits annually. To do so, contact your Cantonal Compensation Office.
If you are employed part-time (working hours below 50 per cent and less than 9 months per year), the compensation office will verify your contributions. This is done based on a comparative calculation: The office compares the contributions from your employment with the contributions you would be required to pay with no earned income.
Your contributions (including the employer's share) must amount to at least half of the required non-employed contribution. Otherwise, the compensation office will classify you as non-employed, and you will be liable for additional contributions.
Compensation offices are decentralised institutions of the OASI. There are two types. Cantonal Compensation Offices: These are responsible for the insured persons within a specific canton as well as for companies in the canton that do not belong to an association compensation fund. Professional Association Compensation Offices: These were established for businesses in specific sectors or industries.
Furthermore, the Confederation operates two special offices: the Federal Compensation Office for federal government personnel, and the Swiss Compensation Office. The latter manages insured persons residing abroad and the voluntary OASI scheme.
A contribution gap occurs if you pay no OASI contributions, or if your contributions are too low, during a calendar year. You must meet the minimum contribution level. A gap in your record would reduce your future state pension. All persons residing or active in gainful employment in Switzerland are liable for contributions.
Contribution liability within the OASI system means: All persons residing or working in Switzerland pay contributions to the OASI/DI/ICO.
Liability begins
for employed persons: on 1 January following their 17th birthday
for non-employed persons: on 1 January following their 20th birthday.
Employed persons pay contributions based on their income. For non-employed persons, contributions are determined by assets and pension income (recurring benefits). These contributions form the basis for benefits such as the state pension. For non-employed people, the obligation to pay contributions generally ends when they reach the reference age.
These tables are used to determine the level of OASI contributions due. They are for non-employed persons and self-employed persons.
Non-employed persons: Calculations are based on assets and what is known as pension income (recurring benefits). Self-employed persons: Contributions are paid based on income, according to a setscale.
Employed persons: Contributions are calculated as a percentage of earnings.
If you are only employed part-time, the compensation office will compare the contributions from your employment and any replacement income with the contributions you would be required to pay with no earned income. Any contributions already paid will be credited to you. You only have pay the difference.
IV is a mandatory insurance scheme. It ensures a basic subsistence income to people who are no longer able to earn a living due to disability. IV can arrange measures to facilitate reintegration or provide financial benefits.
Early retirement means that: An individual stops working before reaching the reference age. It is possible to draw the state pension early; however, it will be subject to a reduction. Even in the event of early retirement, you must continue to pay OASI/DI/ICO contributions until you reach the reference age.
If you are non-employed, for example, if you have taken early retirement or have no income from work, your contributions are not calculated based on earnings. Instead, the basis for calculation is your assets and your annual pension income (recurring benefits). The pension income is multiplied by 20 so that it can be treated as an asset.
Are you non-employed? Then you may be entitled to family allowances. We will verify your eligibility. Please contact the compensation office in your place of residence.
The compensation office calculates the final contributions based on your tax assessment. The office will request payment for any missing contributions or will refund any overpayments.
This includes all income from gainful employment before the deduction of taxes and social insurance contributions. Gross annual income comprises wages, salaries, bonuses, and any other taxable benefits provided by the employer.
Income from gainful activity refers to all income derived from gainful employment either as an employed or self-employed person. This includes wages, salaries, professional fees, and profits. You are required to pay OASI contributions on this income.
Do you own property? The value of property is calculated separately for asset assessment. The intercantonal tax allocation value of the property is used for determining total assets. This value compensates for tax valuation differences between the cantons.
The allocation factor is determined by each individual canton. You can find the allocation factors for all cantons here.
If your payments on account are too low, please inform the compensation office. Otherwise, you may be liable for interest on late payments.
The limitation period for assessment determines how long a compensation fund has to assess contributions that are due. The period is five years. It begins at the end of the calendar year for which the contributions are due. For a specific contribution year, the period begins on 1 January of the following year. It ends five years later, on 31 December. After that, the contributions can no longer be claimed or paid.
The Loss of Earnings Compensation Ordinance offers reasonable financial compensation in the event of the loss of earnings due to the performance of military service or due to maternity leave, paternity leave, adoption leave or leave to care for a severely unwell or injured child.
Net assets are the total value of all Swiss and foreign assets, minus any outstanding debts.
The Swiss occupational benefits system has three pillars. AHV, a mandatory system of national insurance, makes up the first pillar. It covers basic financial needs during old-age or for survivors in the event of death.
If you have children, you are entitled to parental credits. These apply for the years in which you provide care for children under the age of 16. These credits are notional earnings that count towards your state pension. For couples, the credits are split between the parents.
Your compensation office will set your contributions on a provisional basis. In most cases, the office will issue an invoice for payments on account once every quarter.
Pension income refers to recurring benefits from Switzerland or abroad that do not originate from gainful employment and are not returns on assets. This includes:
Pensions of all kinds, including those from abroad
Spousal maintenance from a divorced partner (excluding child maintenance)
Children's pensions from occupational pension schemes or OASI (excluding orphan’s pensions)
Daily allowances and pensions from health or accident insurance providers
Scholarships and grants, and similar benefits
Regular funding from third parties
Bridging pensions from occupational pension schemes or other institutions
The spouse’s income from gainful activity that is not subject to contribution liability in Switzerland (e.g., income from gainful employment abroad)
Pension income does not include:
Disability pensions (DI) from the 1st pillar
Attendance allowance
Supplementary benefits to OASI and DI
Returns on assets
Statutory maintenance and support payments from family members
Orphan’s pensions
Reference age: This is the point at which insured persons can receive their state pension without any reduction. In Switzerland, this age is 65. The reference age for women is also rising to 65. For women born between 1961 and 1963, it is being increased in gradual stages. For example, women born in 1962 will reach their reference age at 64 years and 6 months.
Retirement capital in the 2nd pillar refers to the capital saved within your pension fund. These assets are built up during your working life through contributions from both the employer and the employee. This capital is later used to fund your pension or is paid out as a lump sum.
This is the right to use an asset or property and to benefit from any income it generates without being the legal owner. For example, a person may live in a house or receive rental income from it, even though the house is legally owned by another person.
The compensation office maintains an individual OASI account for every insured person. This is where the annual income reported by employers is recorded. For self-employed and non-employed persons, the office calculates contributions based on their tax assessment. The corresponding annual income is then entered into your account.
The statement from your individual record forms the basis for your state pension. In this statement, you can also see whether you have paid sufficient contributions over the last five years. If there is a gap, you can make back payments for contributions in this period. You can order your statement here.
This refers to the capital held within the occupational pension scheme (2nd pillar). If you change jobs or move away from Switzerland, this capital is transferred to a new pension provision account. This ensures your pension provision is maintained, even when changing employers.
