Last update: 17.09.2024 08:33
Do I have to pay AHV contributions as a pensioner? In principle, yes. If you decide to continue working after the normal retirement age, you must continue to pay AHV contributions on this income under current law. This does not apply to income of less than CHF 1,400 per month or CHF 16,800 per year. This is known as the AHV pensioner’s allowance. You do not have to pay AHV contributions on this part of your earned income. These allowances apply to each individual employment relationship.
When do I have to pay AHV contributions as a pensioner?
Let’s take a closer look at the allowances using two examples.
- Martin is of retirement age and earns CHF 4,800 per month. The first CHF 1,400 is then exempt from contributions and the remaining CHF 3,400 is subject to AHV contributions. Incidentally, his tax-free allowance is not divided up, even if his employment relationship begins or ends during the month. Please note: you can receive the allowance from both your old and new boss.
- Birgit is also of retirement age. She helps out in a daycare center during the summer months of May-September each year. This means that her remuneration relates to more than 1 month, but less than 1 year. The tax-free amount is then determined according to the corresponding fraction of the year. It then amounts to CHF 1,400 for each full or partial calendar month. Birgit is therefore entitled to an allowance of 5*1,400 francs.
As a pensioner, do I have to pay AHV contributions on part-time jobs?
As already mentioned, you generally have to pay AHV contributions on all income that exceeds the allowance. However, if you work for several employers, the AHV pensioner’s allowance applies to each individual employment relationship. This is a clear advantage for part-time employees.
Will AHV contributions increase my pension at retirement age?
Unfortunately not. The additional AHV contributions do not increase your retirement pension under current law. But: this will be remedied with the AHV21 reform, which comes into force on January 1, 2024. You will then have the right to choose whether or not the AHV pensioner’s allowance should be applied to income at retirement age. You can then decide whether you want to pay AHV contributions on your entire salary or only on the portion above the AHV pensioner’s allowance.
In addition, the AHV contributions paid after the reference age of 65 will now also affect your retirement pension. On the one hand, this means that you can make up for missing years and increase your contribution period. This means that you can move up the pension scale. On the other hand, you can increase your average annual income, which also has a positive effect on your pension amount. However, you can only increase your pension up to the maximum pension. This adjustment is intended to make it more financially attractive to work beyond the reference age.
