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Switzerland Considering Increased Employment Contributions or VAT to Fund Additional Pension Payment

|Proposed Changes|Switzerland
Switzerland

The Swiss Federal Council has issued a release announcing that it is considering additional funding to finance an additional "13th month" pension payment under the old-age and survivors' insurance program (AHV), which was recently approved and will take effect in 2026. Two options are being considered, including either an increase in employee contributions by 0.8 percentage points or an increase in employee contributions by 0.5 percentage points and VAT by 0.4 percentage points. The release …

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