Swiss payroll from January 2027: BVG minimum rate rises to 2%, new AHV and BVG amounts

From 1 January 2027, Swiss employers must apply new payroll values. On 4 November 2026 the Federal Council raised the BVG minimum interest rate from 1.25% to 2%. AHV/IV pensions and the BVG entry threshold and coordination deduction also rise. Payroll software and pension-fund registrations must reflect these values from the January 2027 payroll.

The Federal Council raises the BVG minimum interest rate

On 4 November 2026 the Federal Council raised the BVG minimum interest rate from 1.25% to 2%. The new rate applies from 1 January 2027. It follows the formula of the Federal BVG Commission as at the end of September 2026. The minimum rate is the interest that pension funds must at least credit on mandatory retirement savings. The Federal Council press release of 4 November 2026 sets out the decision.

The Federal Council adjusts AHV and IV pensions

On 2 October 2026 the Federal Council adjusted AHV/IV pensions to wage and price developments. Pensions rise by about 1.59% from 1 January 2027. The minimum full pension increases from CHF 1,260 to CHF 1,280 a month. The maximum pension increases from CHF 2,520 to CHF 2,560 a month. The Federal Social Insurance Office release of 2 October 2026 contains the details.

New thresholds in the mandatory occupational pension

In the mandatory occupational pension (BVG), two values change from 1 January 2027. The entry threshold rises from CHF 22,680 to CHF 23,040 a year. The coordination deduction rises from CHF 26,460 to CHF 26,880. Both values determine the salary portion on which mandatory BVG contributions are calculated.

The new values at a glance

The figures are as of November 2026.

What employers should check

Payroll software and pension-fund registrations must use the new entry threshold and coordination deduction from the January 2027 payroll. Employees whose annual salary lies near the entry threshold may fall out of, or into, mandatory BVG cover. Employers should identify these cases before the first payroll run of 2027 and adjust the registrations accordingly. Pension fund statements for 2027 will reflect the 2% minimum rate on mandatory savings. Where we also keep the bookkeeping, salary records and pension statements are reconciled at year-end.

Support from Goldblum and Partners

Goldblum and Partners advises foreign founders and owners of Swiss companies in Zurich and Zug on payroll and social security matters. Our payroll and social security service includes the implementation of the new BVG and AHV values from January 2027.