A parliamentary committee is discussing how the 13th pension payment should be financed.
In March, voters agreed to pay all those on a state pension an extra month’s salary – but it has to be paid for.
The Federal Council favours a rise in VAT, but many believe it won’t be enough.
Other ideas include increasing employee contributions - it would need a rise of nearly 1% - that gets support from the left as it will be a progressive tax.
There has also been talk of a new tax. Such as a fee on financial market transactions or a federal inheritance tax.
Another idea raised was whether those who receive a pension but live abroad, should be covered?
But there’s also no immediate rush. It will be at least two or three years before the payment needs to be made.
Switzerland’s economic outlook remains cautious, with the KOF Swiss Economic Institute forecasting growth of around one percent in 2026,although that depends on falling oil prices.
Heavy traffic is expected across Switzerland over the Easter holiday period, particularly on the A2 Gotthard autoroute and the A13 San Bernardino route from March 27.