Voters across Switzerland will decide on November 29 whether to approve a 0.4-point increase in the value-added tax starting in 2028 to fund the new 13th AVS retirement pension.
The upcoming ballot follows a historic decision on March 3, 2024, when 58.2% of voters backed the creation of the 13th AVS pension according to 24 heures reporting. That same day, a proposal to raise the legal retirement age was decisively rejected by 75% of the electorate.
Supporters of the tax increase argue that the additional revenue is essential to prevent the social security system’s reserves from running into deficits. According to Béatrice Métraux, co-president of Avivo Switzerland and president of Avivo Vaud, writing in a 24 heures tribune, the extra pension will cost 4.2 billion francs annually at first, before climbing to 5 billion francs per year.
Beginning next December, residents living in Switzerland are set to receive an additional AVS pension of nearly 2000 francs per year, which Métraux noted provides vital relief for heavy rent bills or deferred dental work.
Opponents strongly reject the tax adjustment, pointing to the existing strength of the social security fund. In 2025, the AVS recorded a profit of 5.6 billion francs, up from 4.4 billion francs in 2024. The total fund stands at 61.7 billion francs, representing a coverage rate of 115%.
Critics argue that these financial reserves prove the agency has sufficient means available to cover the 13th pension without putting further strain on household budgets already squeezed by health insurance premiums and housing costs.
The Swiss government has supported an increase in Value-Added Tax (VAT) to pay for the 13th payment of the Swiss old-age and survivors' (AHV/AVS) pension. https://t.co/HbWkMUSSZ5
Proponents of the 0.4-point VAT rise maintain that the financial burden on middle-class households will remain modest, estimating the cost at between 7 and 10 francs per month, while higher earners and wealthy tourists contribute more through consumption. Essential goods like food, books, and medications are exempted from the adjustment and will stay at the reduced rate of 2.6%, while rents and health insurance premiums are excluded.
Addressing younger generations who will bear the immediate costs without collecting their own pensions for decades, defenders of the measure emphasize the social solidarity underpinning the system.
“If they have to pay between 7 and 13 francs more per month, it’s not a big deal,” Elisabeth Baume-Schneider said, discussing the impact on younger contributors and noting that they too will receive the 2000-franc average monthly payout once they reach age 65.
Baume-Schneider added that political traditions do not encourage pitting different age groups against one another, stating that the money supports parents, grandparents, and neighbors rather than disappearing.
Conversely, opponents counter that financing the new tier should not rely on additional broad consumption taxes.
