I had to look up these details again today and thought I’d make a post so I don’t have to dig up the files again the next time I need them.
When you are working, social contributions are deducted from your salary. For those that are not aware, even when you are unemployed or retired early, you still have to make these contributions and they can be quite large.
Wait, what?! I have to pay AHV when unemployed?!
Yup! According to the rules:
The OASI scheme distinguishes between employed and non-employed individuals. Anyone with no income or only a low income is regarded as non-employed and pays non-employed contributions.
“OK, How much do I have to pay then?”
Depending on your assets and income, between 500 Fr. and 26’000 per year. Refer to the table on page 6 of the guide for payments to the Non-employed contributions to Old-Age and Survivors’ Insurance (OASI), Disability Insurance (DI) and Income Compensation Insurance (IC) to get the exact figure but as a guide, it is roughly 0.2% of your wealth.
But it is not all bad, the contributions you make get credited to your individual account (IK) and increases your entitlements on retirement.
How much do I get credited for AHV payments based on wealth?
When you pay AHV based on your wealth, there’s a formula which determines the equivalent income which is credited to your IK to calculate your retirement entitlements.
The details can be found in this guide for the calculation of contributions and entries in the individual account (IK), but in summary, the IK credit is equal to = [AHV payment for the year / 0.087 + 0.5].