The pensionable salary, or the coordinated salary, is the gross annual salary from which the so-called coordination sum is deducted. This involves a provision for the calculation of a meaningful level of insurance cover, which ties in with the Three-Pillar Model: deduction of the sum brings about the coordination of the benefits from the occupational pension, the second pillar, with the benefits to be expected from the AHV, the first pillar; the two together should enable the current standard of living to be continued. The amount of the coordination sum is determined by the Swiss Federal Council and is usually reviewed every two years. In contrast, the calculation of the contributions to the AHV is based, in principle, on the total gross earned income.
Calculation examples (in Swiss francs):
Example 1
Working hours: 100%
Annual salary: 25 800
Coordination sum: – 25 725
Pensionable salary: 3 675
Example 2
Working hours: 100%
Annual salary: 65 000
Coordination sum: – 25 725
Pensionable salary: 39 275
Example 3
Working hours: 100%
Annual salary: 150 000
Coordination sum: – 25 725
Pensionable salary: 124 275
Example 4
Working hours: 50%
Annual salary: 52 000
Coordination sum: – 12 863
Pensionable salary: 39 137
The table shows that a low income means that the pensionable salary is low, which results in correspondingly low contributions and pensions. In this case, the provision is primarily based on the AHV and the benefits from the pension fund are mostly supplementary. The higher the pensionable salary, the higher will be both the employer and employee contributions, and the higher will be the benefits to be expected.
The minimum pensionable salary is CHF 3,675. This statutory provision benefits employees whose income is between CHF 22,050, the minimum amount liable for the pension fund, and CHF 29,400 because they receive pensions calculated on the basis of the minimum pensionable salary.