VAT increase on pensions being considered

Tuesday, 6 October 2026 06:35

Switzerland will decide on 29 November whether to raise VAT to pay for the 13th state pension

The Federal Council defended its plan yesterday, proposing a rise from 8.1% to 8.5% to generate CHF 1.5 billion a year.

Financing the top-up pension will cost CHF 4.2 billion in 2026, rising to CHF 5.4 billion by 2040.

The first 13th pension lands in Swiss bank accounts on 1 December, making the vote one of the most consequential of the year.

Both left and right have attacked the plan, meaning the required double majority of people and cantons is far from certain.

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