Switzerland Considers Funding Pension Increase Through Higher Contributions

Switzerland’s government is contemplating an increase in mandatory contributions deducted from wages and raising the value-added tax to fund the rise in pensions recently voted by citizens. Despite the government's advice, Swiss citizens voted in favor of a union-supported plan to provide pensioners with a 13th monthly payment beginning in 2026. To cover the additional cost, estimated at 4.2 billion francs ($4.6 billion) in the first year, the Federal Council has presented a proposal for consideration.