How to pay for 13th pension payment?

A parliamentary committee is discussing how the 13th pension payment should be financed.

In March, voters agreed to pay all those on a state pension an extra month’s salary – but it has to be paid for.

The Federal Council favours a rise in VAT, but many believe it won’t be enough.

Other ideas include increasing employee contributions - it would need a rise of nearly 1% - that gets support from the left as it will be a progressive tax. 

There has also been talk of a new tax. Such as a fee on financial market transactions or a federal inheritance tax. 

Another idea raised was whether those who receive a pension but live abroad, should be covered?

But there’s also no immediate rush. It will be at least two or three years before the payment needs to be made. 

 

 

 

More from Bitesize News

  • Vaud's tallest building now open

    The Tilia Tower, Vaud's tallest residential building at 85 metres, has officially opened in Prilly's Malley district

  • SBB app update

    SBB has updated its mobile app with four new features aimed at daily commuters and expat travellers

  • Lausanne benefit for Crans Montana fire victim

    The Alix Perroud Foundation hosted a benefit evening at the Olympic Museum in Lausanne last night, in memory of a young woman who died in the Crans-Montana fire

  • Lagarde soon to exit the ECB

    Christine Lagarde will leave the European Central Bank in early February next year, nine months before her mandate ends, the ECB announced on yesterday

  • UBS could move out of Switzerland

    UBS chief Sergio Ermotti has repeated his warning that the bank could leave Switzerland, telling Bloomberg that a Swiss passport is no longer enough to keep the bank here

  • Swiss office reopened in North Korea

    Switzerland reopened its diplomatic office in Pyongyang yesterday — the first visit by a Federal Councillor to North Korea in more than twenty years

Download our app

Download on the App StoreGet it on Google Play