AVS

Who must be ensured by the AVS ?

Men and women having a job in Switzerland, including foreigners living in the country or by its borders; people living in Switzerland, including children and people not having a job such as students, persons if independent means, people taking care of the household.

The compulsory insurance does not make a difference between plain employment and self employment. Therefore, a working person is ensured by the AVS whatever the job is. Swiss nationals living abroad can be ensured by the AVS if they wish. This right is also granted to foreigners working abroad for a Swiss employer if they were already affiliated to the AVS for at least five years.

All working persons must pay contributions to the AVS

An exception: young people having a job do not pay contributions until the end of the year during which they turn 17. Therefore, someone turning 17 on August 17th, 2000 will pay contributions to the AVS as of January 1st, 2001. Young people working in their family’s company but not earning wages in cash pay contributions to the AVS as of January 1st following the year when they turn 20.

The obligation to pay contributions ends as soon as the worker reaches the usual retirement age and stops working. For men, the usual retirement age is 65 years old; for women, it is 62 years old. Women born in 1939, 1940 or 1941 will retire at 63 years old. Women born in 1942 will be entitled to a retirement benefit after reaching 64 years old.

Any person working after the retirement age must keep paying contributions to the AVS/AI/APG. However, no contribution must be paid if the annual income does not exceed 16’800 CHF (1’400 CHF a month).People not having a job must pay contributions as of January 1st after turning 20 years old. This obligation lasts until the end of the month during which one reaches the retirement age. People earning disability benefits from the AVS/AI must also pay contributions to the AVS.

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