{"id":8638,"date":"2020-04-12T16:08:38","date_gmt":"2020-04-12T14:08:38","guid":{"rendered":"https:\/\/www.smolio.ch\/wissen\/coordination-deduction\/"},"modified":"2024-09-17T08:33:52","modified_gmt":"2024-09-17T06:33:52","slug":"coordination-deduction","status":"publish","type":"post","link":"https:\/\/www.smolio.ch\/en\/wissen\/coordination-deduction\/","title":{"rendered":"Coordination deduction"},"content":{"rendered":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Lesedauer<\/span> <span class=\"rt-time\"> 2<\/span> <span class=\"rt-label rt-postfix\">Minuten<\/span><\/span>\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">The <strong>coordination deduction is the part of your OASI-liable income on which you do not pay contributions to the occupational pension scheme<\/strong>.\nIt <a href=\"https:\/\/www.smolio.ch\/de\/wissen\/detail\/neuerungen-schweizer-vorsorgesystem-2020\">amounts to \u215e<\/a> of the maximum single AHV annual pension, i.e. CHF 25,725 (as at 2024).\nThe pension fund uses the coordination deduction to calculate your insured salary in the <a href=\"https:\/\/www.smolio.ch\/de\/finanzlexikon\/obligatorium\">mandatory scheme<\/a>.  <\/p>\n\n<!--more-->\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">The upper BVG limit for your annual salary determines how much of your income is insured under the mandatory occupational benefit scheme.\nOn the other hand, the coordination deduction and the minimum coordination deduction also play a role.   <\/p>\n\n<ul class=\"wp-block-list\" data-block-type=\"core\">\n<li data-block-type=\"core\">The <strong>upper limit<\/strong>, also known as the maximum pensionable BVG salary, will remain unchanged at CHF 88,200 as of January 1, 2022.\nIt is always calculated as three times the maximum AHV retirement pension (=3 * 29,400).\nOnly income below the upper limit is subject to the BVG statutory regulations.\nThe respective regulations of your pension fund apply to income components above this amount.   <\/li>\n\n\n\n<li data-block-type=\"core\">To ensure that parts of your income are not insured <em>twice<\/em> in AHV and occupational benefits insurance, the <strong>coordination deduction <\/strong>is deducted from your income in the mandatory 2nd pillar.\nThe coordination deduction is always \u215e of the maximum AHV retirement pension and is CHF 25,725 as of January 1, 2024. <\/li>\n\n\n\n<li data-block-type=\"core\">For income just above the BVG entry threshold of up to CHF 29,400 (= coordination deduction + minimum insured salary), a <strong>BVG minimum salary<\/strong> is always insured (also known as the <strong>minimum insured salary<\/strong> ).\nFrom January 1, 2024, this will be CHF 3,675.\nSo if you work part-time and are just above the entry threshold, you will be insured for at least CHF 3,675 under the BVG.\nIncidentally, the threshold amounts and the coordination deduction apply regardless of your workload.   <\/li>\n<\/ul>\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">The <strong>insured salary<\/strong> (also known as the coordinated salary) is one of the <a href=\"https:\/\/www.smolio.ch\/de\/wissen\/detail\/2-saeule-diese-4-faktoren-bestimmen-wieviel-du-im-alter-bekommst\">four important factors<\/a> that determine the amount of your future pension.\nTo determine its amount, the pension fund deducts the coordination deduction from your gross annual salary.\nThis is because you only have to pay BVG contributions on your insured salary.\nThe deduction therefore avoids double pension contributions.   <strong> <\/strong>If you only receive between 75% and 100% of the AHV individual pension as your annual salary (i.e. between CHF 22,050 and CHF 29,400 per year, as at 2024), the pension fund will insure you with the BVG minimum salary of CHF 3,675.\nOtherwise, you can remember that your annual salary minus the coordination deduction equals your insured salary. <\/p>\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\"><strong>Outlook<\/strong>: The BVG21 reform will adjust the coordination deduction.\nInstead of an absolute amount, the amount of the coordination deduction will in future depend on the salary subject to AHV contributions.\nThe coordination deduction should therefore amount to 20% of the AHV salary in future.\nThe so-called &#8220;minimum coordinated annual salary&#8221; of currently CHF 3,675 would no longer apply.   <\/p>\n\n<p class=\"wp-block-paragraph\" data-block-type=\"core\">If you would like to know more, you can read the article on<a href=\"https:\/\/www.smolio.ch\/de\/wissen\/detail\/vorsorgesprache-alles-was-du-dazu-wissen-musst\">&#8220;Preventive care&#8221;<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The coordination deduction is the part of your OASI-liable income on which you do not pay contributions to the occupational pension scheme. It amounts to \u215e of the maximum single AHV annual pension, i.e. CHF 25,725 (as at 2024). The pension fund uses the coordination deduction to calculate your insured&#8230;<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2409],"tags":[2178,2368],"class_list":["post-8638","post","type-post","status-publish","format-standard","category-financial-lexicon","tag-coordinated-wage","tag-coordination-deduction-en"],"nelio_content":{"autoShareEndMode":"never","automationSources":{"useCustomSentences":false,"customSentences":[]},"efiAlt":"","efiUrl":"","followers":[],"highlights":[],"isAutoShareEnabled":false,"networkImageIds":[],"permalinkQueryArgs":[],"series":[],"suggestedReferences":[]},"featured_image_urls_v2":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":"","davenport-blog-thumb":"","davenport-blog-thumb-grid":"","davenport-blog-thumb-widget":"","davenport-blog-thumb-masonry":"","woocommerce_thumbnail":"","woocommerce_single":"","woocommerce_gallery_thumbnail":""},"post_excerpt_stackable_v2":"<p>Lesedauer 2 Minuten The coordination deduction is the part of your OASI-liable income on which you do not pay contributions to the occupational pension scheme. It amounts to \u215e of the maximum single AHV annual pension, i.e. CHF 25,725 (as at 2024). The pension fund uses the coordination deduction to calculate your insured salary in the mandatory scheme. The upper BVG limit for your annual salary determines how much of your income is insured under the mandatory occupational benefit scheme. On the other hand, the coordination deduction and the minimum coordination deduction also play a role. The upper limit, also&hellip;<\/p>\n","category_list_v2":"<a href=\"https:\/\/www.smolio.ch\/en\/finanzthemen\/financial-lexicon\/\" rel=\"category tag\">Financial lexicon<\/a>","author_info_v2":{"name":"Thomas","url":"https:\/\/www.smolio.ch\/en\/wissen\/author\/thomas\/"},"comments_num_v2":"0 comments","_links":{"self":[{"href":"https:\/\/www.smolio.ch\/en\/wp-json\/wp\/v2\/posts\/8638","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.smolio.ch\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.smolio.ch\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.smolio.ch\/en\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.smolio.ch\/en\/wp-json\/wp\/v2\/comments?post=8638"}],"version-history":[{"count":1,"href":"https:\/\/www.smolio.ch\/en\/wp-json\/wp\/v2\/posts\/8638\/revisions"}],"predecessor-version":[{"id":8640,"href":"https:\/\/www.smolio.ch\/en\/wp-json\/wp\/v2\/posts\/8638\/revisions\/8640"}],"wp:attachment":[{"href":"https:\/\/www.smolio.ch\/en\/wp-json\/wp\/v2\/media?parent=8638"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.smolio.ch\/en\/wp-json\/wp\/v2\/categories?post=8638"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.smolio.ch\/en\/wp-json\/wp\/v2\/tags?post=8638"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}