The AHV explained simply: contributions, pension and the 13th AHV pension

The pay-as-you-go principle

The AHV works on a pay-as-you-go basis: today’s workers directly finance today’s pensions — unlike the pension fund, where everyone saves their own capital. In principle, every working person is liable to contribute from 1 January after their 17th birthday; people without gainful employment pay their own minimum contribution from age 20.

Employees pay 5.3% of gross salary (AHV/IV/EO combined), the employer doubles it to 10.6% — with no cap. The effect on your payday: salary calculator.

What determines the pension amount

Two factors set the pension:

1. Contribution period: a full pension requires a gap-free contribution record (“scale 44”). Every missing year cuts roughly 1/44 for life.
2. Decisive average annual income: all contribution-liable income, revalued, plus child-raising and care credits (notional income for years with children under 16 or relatives needing care).

For married couples, the incomes of the marriage years are split (half credited to each), and the sum of both pensions is capped at 150% of the maximum single pension — one of the points in the guide marriage & taxes.

Reference age and flexible drawing

The reference age is 65 — since the AHV 21 reform for men and (with a transitional generation around 1961–1969) for women too. Drawing remains flexible nonetheless:

• Early drawing by one or two years: lifelong pension reduction.
• Deferral by up to five years: lifelong supplement.
• Partial drawing and combining with continued work are possible; anyone working beyond the reference age can close gaps with the additional contributions.

The pension does not come automatically: register with the compensation office a few months before you want to draw it.

The 13th AHV pension (from 2026)

Since 2026, a 13th monthly pension is paid each December — approved by voters in 2024. Important for the workforce: it is not financed through higher wage deductions; the contribution rate stayed at 5.3%.

What you can do yourself

1. Order your IA statement (individual account, free): spot gaps early — back-payment is only possible within five years.
2. Avoid gaps: when abroad, studying or on a career break, check whether the minimum contribution is owed (otherwise a gap arises even though you did nothing “wrong”).
3. Keep the AHV in perspective: the maximum pension replaces only part of a salary — your accustomed standard of living rests on the pension fund and pillar 3a. The three pillars together complete the picture.