June 24, 2025|
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|5 months agoSwiss Parliament Approves Tax and VAT Increases to Address Pension Challenges
Upper house gives green light to tax reforms aimed at funding increased pension payments, responding to demographic pressures and recent referendum mandating 13th monthly payment
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Generated IllustrationKey Takeaways
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- Swiss upper house (Council of States) approved a financing plan for pension reforms
- The reform includes two-stage increases in VAT and social-security taxes
- Swiss voters approved 13th monthly pension payment in March 2024
- The plan is supported by Socialist Party, Greens, and Centre Party
- PLR/FDP and UDC/SVP oppose the funding mechanisms
By The Numbers
8.3%
Annual increase in pension payments due to 13th month addition
1.5
Current pension cap ratio for married couples compared to single persons
They Said
"Critics argue that the plan front-loads tax increases to fund a benefit whose full scope has not yet been approved by voters"