Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation
Reply
 
Thread Tools Display Modes
  #1  
Old 07.05.2015, 10:14
Dack Rambo's Avatar
Forum Veteran
 
Join Date: Mar 2010
Location: Switzerland
Posts: 2,439
Groaned at 178 Times in 105 Posts
Thanked 1,551 Times in 765 Posts
Dack Rambo has earned the respect of manyDack Rambo has earned the respect of manyDack Rambo has earned the respect of many
Employer BVG %

Is there a "standard" percentage of salary that an employer pays towards an employees BVG (second pillar)? I know this can vary by employer and that some banks and insurance companies pay double the employee BVG contribution.

For example my current employeer matches my BVG % whereas my previous employer paid paid double what I paid. Is there a "Swiss Standard" for smaller companies as to what percentage BVG the employer pays? (AFAIK banks usually pay double the employee BVG %)
Reply With Quote
  #2  
Old 07.05.2015, 22:03
jaudi's Avatar
Senior Member
 
Join Date: Sep 2007
Location: zurich
Posts: 494
Groaned at 4 Times in 4 Posts
Thanked 412 Times in 193 Posts
jaudi has an excellent reputationjaudi has an excellent reputationjaudi has an excellent reputationjaudi has an excellent reputation
Re: Employer BVG %

The employer must pay at least 50%
Reply With Quote
  #3  
Old 07.05.2015, 22:15
Jern's Avatar
Forum Veteran
 
Join Date: Feb 2008
Location: Bern
Posts: 907
Groaned at 11 Times in 10 Posts
Thanked 1,091 Times in 470 Posts
Jern has a reputation beyond reputeJern has a reputation beyond reputeJern has a reputation beyond reputeJern has a reputation beyond repute
Re: Employer BVG %

Quote:
View Post
Is there a "standard" percentage of salary that an employer pays towards an employees BVG (second pillar)? I know this can vary by employer and that some banks and insurance companies pay double the employee BVG contribution.

For example my current employeer matches my BVG % whereas my previous employer paid paid double what I paid. Is there a "Swiss Standard" for smaller companies as to what percentage BVG the employer pays? (AFAIK banks usually pay double the employee BVG %)
I think that 50% is pretty much the norm.
Reply With Quote
  #4  
Old 07.05.2015, 22:24
Tilia's Avatar
Forum Legend
 
Join Date: Nov 2007
Location: ZH
Posts: 2,539
Groaned at 71 Times in 37 Posts
Thanked 2,215 Times in 1,020 Posts
Tilia has a reputation beyond reputeTilia has a reputation beyond reputeTilia has a reputation beyond reputeTilia has a reputation beyond reputeTilia has a reputation beyond reputeTilia has a reputation beyond repute
Re: Employer BVG %

50/50 is the norm.
Reply With Quote
  #5  
Old 08.05.2015, 11:50
Dack Rambo's Avatar
Forum Veteran
 
Join Date: Mar 2010
Location: Switzerland
Posts: 2,439
Groaned at 178 Times in 105 Posts
Thanked 1,551 Times in 765 Posts
Dack Rambo has earned the respect of manyDack Rambo has earned the respect of manyDack Rambo has earned the respect of many
Re: Employer BVG %

Ok, thanks. So anything more favourable than 50 / 50 would be good. Most banks do pay 75 / 25 though, don't they?
Reply With Quote
  #6  
Old 08.05.2015, 12:05
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 13,716
Groaned at 209 Times in 181 Posts
Thanked 11,029 Times in 6,254 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Employer BVG %

Quote:
View Post
Ok, thanks. So anything more favourable than 50 / 50 would be good. Most banks do pay 75 / 25 though, don't they?
The law requires the employer pays 50% of contributions on salary between 24,675 & 84,600.

Many smaller employers don't pay any contributions on salary above 84,600, so it would seem banks are very generous.
Reply With Quote
The following 7 users would like to thank fatmanfilms for this useful post:
  #7  
Old 08.05.2015, 15:14
Troublawesome's Avatar
Forum Veteran
 
Join Date: Mar 2014
Location: Zug
Posts: 721
Groaned at 124 Times in 75 Posts
Thanked 583 Times in 271 Posts
Troublawesome is considered unworthyTroublawesome is considered unworthyTroublawesome is considered unworthyTroublawesome is considered unworthy
Re: Employer BVG %

Bigger companies pay it for the whole salary and usually for a favorable ratio like 75/25 or 60/40. I work for a small company and still get 60%/40% for my whole salary which is more than the limit.

It's not usual to see the minimum, same with minimum days off at 20 days. It looks bad and probably says something about the employer too. (unless we're talking about a really small company)
Reply With Quote
  #8  
Old 08.05.2015, 18:28
Dack Rambo's Avatar
Forum Veteran
 
Join Date: Mar 2010
Location: Switzerland
Posts: 2,439
Groaned at 178 Times in 105 Posts
Thanked 1,551 Times in 765 Posts
Dack Rambo has earned the respect of manyDack Rambo has earned the respect of manyDack Rambo has earned the respect of many
Re: Employer BVG %

employer-bvg-vl.png

Can anyone explain what the terms above actually mean? I can't work out if they are good or bad
Reply With Quote
  #9  
Old 08.05.2015, 18:38
Tilia's Avatar
Forum Legend
 
Join Date: Nov 2007
Location: ZH
Posts: 2,539
Groaned at 71 Times in 37 Posts
Thanked 2,215 Times in 1,020 Posts
Tilia has a reputation beyond reputeTilia has a reputation beyond reputeTilia has a reputation beyond reputeTilia has a reputation beyond reputeTilia has a reputation beyond reputeTilia has a reputation beyond repute
Re: Employer BVG %

Talk to the advisor from your pension fund. They can explain it all for you.
Reply With Quote
  #10  
Old 08.05.2015, 18:40
Dack Rambo's Avatar
Forum Veteran
 
Join Date: Mar 2010
Location: Switzerland
Posts: 2,439
Groaned at 178 Times in 105 Posts
Thanked 1,551 Times in 765 Posts
Dack Rambo has earned the respect of manyDack Rambo has earned the respect of manyDack Rambo has earned the respect of many
Re: Employer BVG %

This is a plan which has been proposed to me. I have to decide whether to accept it or not, which is why I would like some independent advice.
Reply With Quote
  #11  
Old 08.05.2015, 19:03
aSwissInTheUS's Avatar
Forum Legend
 
Join Date: Nov 2007
Location: Zurich area
Posts: 5,028
Groaned at 40 Times in 38 Posts
Thanked 7,068 Times in 3,215 Posts
aSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond repute
Re: Employer BVG %

Quote:
View Post
Attachment 99281

Can anyone explain what the terms above actually mean? I can't work out if they are good or bad
Quote:
View Post
The law requires the employer pays 50% of contributions on salary between 24,675 & 84,600.

Many smaller employers don't pay any contributions on salary above 84,600, so it would seem banks are very generous.
1.7 Covers the income from 24'675 up to 84'600. (The legal minimum)

1.8 Covers the income above 84'600.

AHV Covers the part from 0 to 28'200.

Is it good? They cover at least the income above 84'600. But some BVG schemes even cover all income starting from 0 and not just part of it.
Reply With Quote
This user would like to thank aSwissInTheUS for this useful post:
  #12  
Old 08.05.2015, 20:58
Dack Rambo's Avatar
Forum Veteran
 
Join Date: Mar 2010
Location: Switzerland
Posts: 2,439
Groaned at 178 Times in 105 Posts
Thanked 1,551 Times in 765 Posts
Dack Rambo has earned the respect of manyDack Rambo has earned the respect of manyDack Rambo has earned the respect of many
Re: Employer BVG %

Thanks a lot. This is very helpful. One more question, is the 84,600 figure what is called the UVG Maximum?
Reply With Quote
  #13  
Old 09.05.2015, 11:37
aSwissInTheUS's Avatar
Forum Legend
 
Join Date: Nov 2007
Location: Zurich area
Posts: 5,028
Groaned at 40 Times in 38 Posts
Thanked 7,068 Times in 3,215 Posts
aSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond repute
Re: Employer BVG %

Quote:
View Post
Thanks a lot. This is very helpful. One more question, is the 84,600 figure what is called the UVG Maximum?
No, the UVG (Accidence Insurance) max, insured income is 126'000. Which is also the ALV max insured income. (But you will only get 80%)

84'600 is 3x the max. AHV payout for a single person. Which you are entitled to if your average income was at least 84'600.

Last edited by aSwissInTheUS; 09.05.2015 at 11:59.
Reply With Quote
  #14  
Old 09.05.2015, 13:58
Kamarate's Avatar
Forum Veteran
 
Join Date: Jan 2010
Location: Neuchatel
Posts: 1,915
Groaned at 57 Times in 38 Posts
Thanked 1,619 Times in 685 Posts
Kamarate has a reputation beyond reputeKamarate has a reputation beyond reputeKamarate has a reputation beyond reputeKamarate has a reputation beyond reputeKamarate has a reputation beyond reputeKamarate has a reputation beyond repute
Re: Employer BVG %

Just to specify a little further, although the employer is obliged to contribute at least 50%, this applies to the whole plan. So it could be that the employee actually contributes more than the employer when they're younger, and as they advance in age brackets, the employer starts paying more. As long as, taking the percentages of all age brackets into account, the employer contributes more, it's fine.

This is something I discovered at work only a couple of months ago. I noticed something was funny, looked at the regulations for that particular pension fund and saw that younger people under the plan had to contribute more than the employer.
Reply With Quote
  #15  
Old 09.05.2015, 15:56
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 13,716
Groaned at 209 Times in 181 Posts
Thanked 11,029 Times in 6,254 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Employer BVG %

Its bad news, your not going to get pension on your full salary
Reply With Quote
  #16  
Old 09.05.2015, 23:50
Dack Rambo's Avatar
Forum Veteran
 
Join Date: Mar 2010
Location: Switzerland
Posts: 2,439
Groaned at 178 Times in 105 Posts
Thanked 1,551 Times in 765 Posts
Dack Rambo has earned the respect of manyDack Rambo has earned the respect of manyDack Rambo has earned the respect of many
Re: Employer BVG %

Quote:
View Post
Its bad news, your not going to get pension on your full salary
Can you explain a little more?
Reply With Quote
  #17  
Old 10.05.2015, 16:00
aSwissInTheUS's Avatar
Forum Legend
 
Join Date: Nov 2007
Location: Zurich area
Posts: 5,028
Groaned at 40 Times in 38 Posts
Thanked 7,068 Times in 3,215 Posts
aSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond repute
Re: Employer BVG %

The part of your income from 0 to 24'675 is not covered by your future employer's pension scheme.
Reply With Quote
The following 3 users would like to thank aSwissInTheUS for this useful post:
  #18  
Old 10.05.2015, 17:57
Forum Legend
 
Join Date: Oct 2014
Location: Ostschweiz
Posts: 3,018
Groaned at 99 Times in 79 Posts
Thanked 3,743 Times in 1,935 Posts
Urs Max has a reputation beyond reputeUrs Max has a reputation beyond reputeUrs Max has a reputation beyond reputeUrs Max has a reputation beyond reputeUrs Max has a reputation beyond reputeUrs Max has a reputation beyond repute
Re: Employer BVG %

The situation as of 1.1.2015:

i) maximum AHV payment (old age insurcane) for singles is 28'200.-

ii) Koordinationsabzug is 7/8 that of the AHV maximum => 28200 * 7/8 = 24'675.-

iii) point 1.7 in your contract. This is called 2nd pillar "2a", defined by BVG, maximum insured salary is 84'600 less 24'675 = 59'925.-
This salary portion is called "koordinierter Lohn"(KL). Depending on the employees age a certain percentage (increases are laddered) of the KL must be paid into 2a, whereby the employer must pay at least as much as the employee - thus 50-100% of all payments into 2a are shouldered by the employer.

iv) point 1.8 in your contract. Income above BVG maximum is called "überobligatorischer Lohn", 2nd pillar "2b". I may be wrong, but I think savings for this part of the salary are voluntary and fall under ordinary insurance laws, this would also mean that the employer is free to also pay or not.

Note that 84'600 = 3 * 28'200. This is referred to by "das Dreifache" in 1.7 as well as by "300%" in point 1.8

Your contract looks ok to me. Some employers (large ones mostly) have a separate "Pensionskassenreglement" wherein they define details, especially if they provide additional benefits.

The "Mindestzins" defined by the Bundesrat covers pillar 2a only.
Reply With Quote
The following 2 users would like to thank Urs Max for this useful post:
Reply

Tags
bvg




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Increase of compulsory employer and employee salary deductions (AHV, BVG etc...) swissvan Employment 24 01.04.2015 05:38
Working part time for both a Swiss employer and a US employer separately gtrob Employment 0 14.09.2014 18:14
Bvg JackieZ Leaving Switzerland 0 15.08.2014 17:48
Potential employer demanding a reference from current employer Dramaticpause Employment 21 09.05.2010 01:16
Employer's right to money from BVG refund amount Indianguy Finance/banking/taxation 14 06.08.2009 17:51


All times are GMT +2. The time now is 19:45.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2016, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0