Contribution to the 3rd pillar
The 3rd pillar is a survivor and disability pension system included in the Swiss constitution, it is mainly used to supplement the 1st and 2nd pillar income.
Unlike the 1st and 2nd pillars, the maximum contribution of the linked 3rd pillar for employees is CHF 6,826 per year and rises to 20% of net operating income for the self-employed but stops at a limit of CHF 34,128. However, there is a free contribution to the 3rd pillar open to all residents of Switzerland, who work in Switzerland or abroad, for free contributions there is no payment limit for this type of contract.
The 3rd pillar makes it possible to make a tax saving, the annual payment is deducted from taxable income at a certain contribution limit.
The tax deduction for the contribution to the 3rd linked pillar is limited at federal and cantonal level to CHF 6,768 per year and up to CHF 33,840 for self-employed persons.