Article written by Julie Pignier

Social insurance: what's changing in 2024

The year 2024 marks a significant turning point for social insurance in Switzerland. The aim of this article is to provide you with a clear and concise overview of the major changes that will take place in this sector. Major reforms such as the AVS 21 reform, adjustments to invalidity insurance and changes to loss-of-earnings allowances will be discussed. These changes will impact not only individuals, but also companies and pension policies in general. Understanding these developments is essential if you are to anticipate their effects on your daily and professional life. We will also look at the popular initiatives up for vote and the potential implications of these votes for the future of social insurance in Switzerland.

AVS 21 reform

Reference age for women: the main thrust of the reform is to raise the reference age (= retirement age) for women from 64 to 65. For women close to retirement, implementation will be phased in gradually.

Greater flexibility: Insured persons will now be able to plan their transition from working life to retirement more flexibly, with the option of bringing forward or deferring part of their old-age pension. AHV pensions can be drawn from any month between the ages of 63 and 70 (62 for women of the transitional generation, i.e. those born between 1961 and 1969).

Continuation of contributions: From 1 January 2024, employees who are over 65 (for men) or over 64 (for women) on 1 January 2024 and who continue to work have the option of paying contributions on their entire salary and waiving the deductible of CHF 1,400 per month. This choice must be notified on the salary declaration for income paid in 2024. If they choose to waive the excess, employees must do so before their first salary after their reference age. This choice is valid for the rest of the year and may or may not be renewed before the first salary of each calendar year.1

This option allows employees to make up any contribution gaps and increase their future pension.

VAT increase: The AVS reform will also lead to an increase in VAT from 1 January 2024. The standard rate will be 8.1% (instead of 7.7%), the reduced rate 2.6% (instead of 2.5%) and the special rate for services in the accommodation sector 3.8% (instead of 3.7%). The revenue generated will be paid in full to the AVS.

Invalidity Insurance (AI) – More realistic hypothetical income

10% reduction in hypothetical income: To better reflect the real abilities of disabled people, hypothetical income will be reduced by 10%, thereby impacting the disability rate and potentially increasing pensions.

Loss of earnings compensation scheme – Extended leave for surviving parents

In the event of the death of a parent after the birth of a child, maternity or paternity leave for the surviving parent is extended to 16 weeks.

In the event of the mother’s death within 14 weeks of the child’s birth, the other parent (the father or the mother’s wife) is entitled, in addition to his or her 2-week leave, to 14 weeks’ paid leave to be taken in a single period immediately after the death. This allowance ends as soon as the other parent resumes gainful employment.

Occupational pension provision (LPP)

The minimum interest rate will be raised by 0.25 percentage points to 1.25% in 2024. The minimum LPP interest rate is the minimum interest rate applicable to LPP retirement savings. However, pension funds may grant higher rates.

Family allowances and maternity insurance (canton of Geneva)

Contribution rates for child benefit have been adjusted from 2.34% to 2.28% from 1 January 2024. Cantonal maternity insurance will increase to 0.076%, down from 0.082% in 2023.


Here is a summary table of the joint contribution rates from 1 January 2024

  Rate charged Payable by the employer Payable by the employee
AVS/AI/APG  10.60%  5.30%  5.30% 
Unemployment insurance up to CHF 148,200 gross salary 2.20%  1.10%  1.10% 
Family allowance Geneva 2.28%  2.28%   
Maternity Insurance (AMAT) Geneva 0.076%  0.038%  0.038% 
Contribution towards childcare (LSAPE) 0.07%  0.07%   
Professional training contribution (LFP)  Between 0,03% et 0,15%  Between 0,03% et 0,15%   


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Developments in 2024

Two popular initiatives will be put to the vote by the Swiss people on 3 March 2024:

The pensions initiative calls for the reference age for men and women to be raised to 66 and linked to average life expectancy. It is estimated that retirement at 66 would reduce AVS expenditure by CHF 2 billion. 2

The initiative for a 13th AVS income calls for all pensioners to be entitled to a 13th AVS income. This increase will result in additional costs of around CHF 4.1 billion for the 13th AHV income in the first year, of which CHF 800 million will be financed by the Confederation. Costs will rise rapidly thereafter. The initiative leaves the question of financing open.3

Reform of occupational pension LPP 21

On 17 March 2023, Parliament adopted the reform of occupational pension (LPP reform). Its aim is to strengthen the financing of the 2nd pillar, maintain overall pension levels and improve cover for part-time workers, mainly women. Following the success of the referendum launched against the reform, the people will vote on this issue in 2024.4


We recommend organising information sessions for employees to explain the latest developments in social insurance.

If you need a trusted HR and payroll partner, don’t hesitate to contact us.



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