When do we have to start contributing to the second pillar (LPP)?

Updated on December 1st, 2023.

Unlike the OASI (AHV), which covers everyone and to which we all contribute, whether you are a student, looking for work, self-employed or employed, the LPP only insures employees or the self-employed (on an optional basis) whom are affiliated with the OASI. Half is financed by the employees and the other half by the employers. 

Another major difference with the OASI (AHV) is that when a percentage of my salary is taken away from me of the OASI, this saving is not meant for me. It is meant for those currently retired. Regarding the portion of my salary destined to the LPP, it will be returned to me when I retire. In contrast to the OASI, this is a capitalisation scheme.

Those who do not pay for the LPP are therefore retired persons, some self-employed persons or persons without gainful employment. 

When should we start contributing to the 2nd pillar?

As with the 1st pillar, the 2nd pillar is made up of two distinct parts:

Risk contributions (sickness, accident and death)

Regarding LPP contribution in the risk section, you will start if from 1^st January following your 17^th birthday if: 

• Your annual salary is higher than 22,050 CHF in 2023 (21,510 CHF in 2022), that is 1,837.50 CHF per month (they are very meticulous at the government!)  
• You receive this money for one sole employer 

Be careful, at that age (oh, 17 years old, what a nice age!), you only contribute for death and disability risks. 

Savings contributions in the 2nd pillar

You start sparing you’re your old-age capital from 1^st January following your 24^th birthday, as long as the two above-mentioned requirements are met. Otherwise, you will start saving to your second pillar as soon as these requirements are met. 

Please note: Nothing prevents an employer from starting to contribute for you before your 25th birthday. This is not an obligation, but a right.

To learn more about the 2nd pillar and deepen your knowledge of the subject, two articles may be of interest to you:

• How are your BVG contributions calculated?
• Understanding your BVG certificate better?