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Thirteenth AVS pension from 2026: how it works, who receives it, how it is financed

In a nutshell. From December 2026, old-age pensioners in Switzerland will receive an additional AVS monthly payment: the so-called thirteenth AVS pension, approved by the people in 2024. It is worth around one extra monthly payment per year (an increase of about 8.3% of the annual pension income), is paid automatically once a year in December and is due to those who receive an old-age pension, including abroad. In 2026, nothing changes on the payslip: how to finance it is still under discussion in Parliament.

A people's yes that changes pension provision

On 3 March 2024 the Swiss people approved the "For a better life in retirement" initiative, giving the green light to the thirteenth AVS monthly payment. It is not a symbolic novelty: it is one of the biggest changes to the public pension system in recent years, and from 2026 it will concretely enter Swiss pensioners' bank accounts.

For businesses, fiduciaries and workers the practical question is just one: what really changes? Let's look at the points that matter, based exclusively on official information from the Federal Social Insurance Office (FSIO) and the Federal Council.

How it works, in practice

The thirteenth AVS pension is an additional old-age pension, equal to one extra monthly payment per year, which is added to the twelve monthly payments already in place. In practice:

• it is paid once a year, in December, together with the normal pension for that month;
• it is equal to one twelfth (around 8.3%) of the sum of old-age pensions received in the year;
• it arrives automatically: the pensioner does not have to make any request.

To give orders of magnitude: those who receive the minimum AVS pension will receive in December an additional monthly payment of the same amount; the same applies to those who receive the maximum individual or couple pension. The annual effect is an increase in AVS income of around 8.3%.

Who is entitled to it (and who is not)

The right to the 13th monthly payment is simple to define: it benefits those who are entitled to an AVS old-age pension in the month of December of the relevant year.

In summary:

• AVS old-age pensioners in Switzerland → yes, in full.
• AVS pensioners resident abroad → yes, under the same condition (active AVS pension).
• Widow's and orphan's pensions → no, they continue to be paid twelve times a year.
• Disability pensions (AI) → no, excluded.
• Pensions for children, complementary pensions and AVS 21 transitional supplements → are not included in the calculation of the thirteenth.
• Those who die between January and November → the heirs are not entitled to the 13th for that year.

Another important point for those living on a pension: the thirteenth is not taken into account in the calculation of supplementary benefits (PC), so it does not reduce any additional support a pensioner is entitled to.

The date that counts: December 2026

The first payment of the thirteenth AVS pension is expected for December 2026. From then on it will be repeated every year, always in December, as a supplement to the normal monthly pension.

For pensioners there is nothing to do: the compensation fund pays the additional amount automatically to beneficiaries who are entitled to the AVS old-age pension in December.

How it is financed (there is still an open debate here)

This is the point on which we need to be accurate and honest: the final financing method has not yet been decided. The estimated annual expenditure for the thirteenth is around CHF 4.2 billion, of which around 850 million falls on the Confederation. Two main paths are on the Parliament's table, partly combinable:

1. VAT increase — the Federal Council proposal (October 2024) provides for an increase of 0.7 percentage points in the VAT rate (the standard rate would go from 8.1% to 8.8%, the hotel and the reduced rate in proportion). It is the traditional way of financing social benefits and avoids weighing directly on labour costs.

2. Increase in AVS wage contributions — the Committee of the Council of States has proposed a different mix: increase in AVS contributions of 0.4 points from 2028, partially offset by a reduction of 0.2 points in unemployment insurance, with a net balance of +0.2 points (0.1 borne by the employer, 0.1 by the employee), plus an immediate VAT increase of 0.5 points.

The final decision lies with the Federal Chambers. In any case, in 2026 nothing changes on the payslip: the additional financing, in whatever form it is approved, will progressively enter in the following years.

It should also be said that the Confederation's share of AVS financing, with the introduction of the thirteenth, decreases from 20.2% to 19.5% of outgoings, helping to keep the federal accounts under control.

What changes for workers and SMEs in 2026

For employees, 2026 does not bring any payslip variations related to the thirteenth AVS pension: current contributions (AVS 8.7% split half between employer and employee, plus AI and IPG, for a total of 10.6%) remain unchanged.

For Swiss SMEs the same applies: in 2026 no increase in labour cost linked to the 13th AVS. If the proposal based on wage contributions passes, from 2028 a marginal increase is foreseen: +0.1 points borne by the employer, +0.1 borne by the employee. If instead only the VAT route passes, labour cost does not increase, but VAT on consumption goes up by 0.7%.

In either case we are talking about modest deviations relative to the whole pension package of a company, but to be correctly included in personnel cost planning from 2028 onwards.

Sustainability of the AVS in the medium term

The introduction of the thirteenth accelerates the financial pressure on the AVS. Without new structural revenues, the AVS compensation fund is set to fall rapidly below the 100% threshold of annual outgoings, and official projections estimate a deficit of around CHF 4.2 billion in 2035.

The VAT increase proposed by the Federal Council would guarantee the system's balance until around 2030, but it is clear to everyone — parties, social partners, compensation funds — that a new structural reform of the AVS will be necessary in the coming years. It is a topic to follow closely, because it affects labour costs, contribution rates and pension planning for everyone.

What businesses and fiduciaries must do

To date, the list of practical things to do is short and honest:

• In 2026: nothing on payroll calculations. The thirteenth is paid by the AVS directly to pensioners and does not pass through the employer.
• Update AVS and/or VAT rates when Parliament has closed the financing model. Fiduciaries will have to update accounting and payroll systems and apply the new rates from the date of entry into force.
• Inform employees when payslip changes are confirmed, avoiding confusion or false expectations.
• Plan personnel costs from 2028 considering the possible increase in AVS contributions.

There is no immediate obligation to act, but it is the right time to get ready: having a clear picture allows you not to be caught off guard when the changes come into force.

How we help

For a fiduciary, this is exactly the type of news on which a client — private person, pensioner or business — expects a clear answer: "what changes for me?". Fidav has been supporting businesses and individuals between Italy and Switzerland since 1982, and handles AVS contributions, salaries, tax returns and pension planning daily.

In practical terms, we help you understand the real impact of the 13th AVS on your situation, keep your company's payroll calculations always aligned with the new rules and anticipate the choices that will be useful from 2028 onwards. Read more on our HR administration and payroll and, for the tax and planning side, our tax advisory for individuals or for companies.

Have doubts about your payslip, your pension or your company's contributions? Chat with us on WhatsApp at +41 79 741 02 89 or call +41 91 640 40 20.

FAQ (visible on page + FAQPage schema above)

When is the thirteenth AVS pension paid for the first time? The first payment of the 13th AVS monthly pension is expected for December 2026, in addition to the normal old-age pension for that month. The thirteenth is paid once a year, always in December, and arrives automatically to beneficiaries: no application is required.

Who is entitled to the thirteenth AVS pension? The 13th monthly payment is due to all persons who receive an AVS old-age pension in the month of December, including pensioners resident abroad who already receive an AVS pension. Widow's, orphan's and disability pensions (AI) are excluded; they continue to be paid twelve times a year. Pensions for children and AVS 21 transitional supplements are also not included in the calculation.

How much is the thirteenth AVS pension worth in practice? The 13th monthly payment is equal to one monthly payment of the basic old-age pension and corresponds to one twelfth of the pensions paid in the year (around 8.3%). This means, for example, that those who receive a minimum pension will receive in December an additional monthly payment of the same amount, and the same applies to those who receive the maximum pension for singles or couples. It is a net increase in the pensioner's annual income of around 8.3%.

What changes on the payslip for workers in 2026? For 2026, no payslip variations or social contribution increases for the employer or worker are foreseen: the final financing is still under discussion in Parliament. The hypotheses on the table are a VAT increase (which would not affect labour cost) and/or a small increase in wage contributions from 2028. Until then, current rates apply.

What must a company or a fiduciary do to manage the thirteenth AVS pension? In 2026 there is nothing to change in payroll calculations: the additional pension is paid by the AVS directly to pensioners and does not pass through the employer. Companies and fiduciaries will only have to update contributions and/or VAT rate once Parliament has defined the financing model. It is nonetheless useful to inform employees and follow federal decisions to be ready from when they come into force.