Contribution to the 3rd pillar

The 3rd pillar is an old-age, survivors' and invalidity pension scheme included in the Swiss constitution. Its main purpose is to supplement 1st and 2nd pillar income.

Unlike the 1st and 2nd pillars, the maximum linked 3rd pillar contribution for employees is CHF 6,826 per year, rising to 20% of net operating income for the self-employed, but stopping at a limit of CHF 34,128. There is, however, a free 3rd pillar contribution open to all residents of Switzerland who work in Switzerland or abroad. There is no limit to the amount that can be paid into this type of contract.

The 3rd pillar saves tax: the annual payment is deducted from taxable income up to a certain contribution limit.

The tax deduction for contributions to a linked 3rd pillar is limited at federal and cantonal level to CHF 6,768 per year and up to CHF 33,840 for self-employed persons.

Only Geneva and Fribourg allow an additional deduction of up to CHF 3,300 for a married couple.