How to pay for 13th pension payment?

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. 

 

 

 

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