Are you supposed to keep paying these beyond age 65 as I’m having a debate with OHs payroll on this at the moment. Some of the info I’ve looked at has been a bit confusing.
They also haven’t deducted withholding tax from his income since the accident so he’s paying 3 months in one go. I despair of agencies in India.
What do Indian agencies have to do with Swiss BVG payments?
Part of their payroll company is based in Zurich, so salary is paid out from Switzerland. The person I am liaising with is based in India.
These indian companies are not just ignorant, but outright thieves, in my experience. Apologies if i am bursting the balloon.
If they give you any runaround, threaten them that you will file complaint with Swiss SECO office and demand a local swiss payroll company, given the runaround you already have. If they know what SECO is, they will fall in line.
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My experience is they don’t read what you put in emails properly, I’ve been going ping pong back and forth with this guy since last Friday. It’s a simple question I’ve asked, they should know the answer.
Allow me to share my latest indian company experience. some Indian recruiter looked me up on linkenIn, and called me. He confidently told me they were registered with the kanton and was confident that everything was ok.
I told him to send me his SECO approval papers, and he did not even know that SECO was. But he was confident that all paperwork was in place and good.
Apologies if this seems like a run around, but things in Switzerland are highly controlled and regulated. If this indian company does not have SECO approval, then you are in a different game.
Perhaps someone else in this forum can provide guidance and way to go … kantons are also an option to reach out to …
I’m sure they have approval as major Swiss companies are using them. Don’t want to say who they are but I believe it’s the global company owned by Rishi Sunak’s wife and family.
Yes you pay BVG if you work regardless of age. After 65 there is a 1700 chf/month salary disregarded so the deductions are smaller. If you have missing years and extra BVG means a lot, you can opt to pay full bvg deduction. If you have the max bvg already you still have to pay even if it doesnt increase your pension. In this case of course you choose the 1700 disregard to reduce the pay deduction
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I think you are confusing BVG (2nd pillar) with AHV (1st pillar), I got this from a simple search:
Rules for Working Post-65
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Mandatory vs. Voluntary: Legally, compulsory insurance under the BVG stops at age 65. However, many pension fund regulations allow employees to continue active insurance and savings contributions past 65 if they keep working, up to a maximum age (often age 70) if agreed upon with the employer.
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Deferring the Pension: If you defer drawing your pension fund benefits while continuing to work past 65, some pension funds allow or require you to continue building up your retirement capital.
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1st Pillar vs. 2nd Pillar Distinction: While mandatory 2nd pillar (BVG) contributions usually stop at 65, you are still legally required to pay 1st pillar (AHV/AVS) contributions on any earned income past 65, though a monthly tax-free allowance applies.
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Give these guys a call. They can answer most any specific question regarding pensions.
Perhaps instead of calling India talk to the specific BVG insurance representative.
Don’t worry you are not bursting a balloon, you are just telling us about your own predisposes. I have worked, consulted for and supervised Indian outsourcers since the very first time they appeared in Switzerland back in 1991, 8 different companies in total. And that has not been my experience.
Generally speaking you don’t have to pay after you reach 65, but you must also stop saving for retirement! That means pension contributions, third pillar etc… Because of this it is not a step to take lightly, especially if you are not fully paid up in all three pillars. I would suggest you seek proper advice before you make any decision that can’t be reversed.
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Bob, we’re not going to be retiring in Switzerland, when the time eventually comes we’ll be heading back to our house in Scotland.
Also just to say thanks to others for the information given, I’m not particularly sweating over this but I just wanted to make sure I know where I am with it.
I’ve never worked in the Swiss employment system as I became a housewife about 6 years ago. The most I’ve handled is getting the paperwork together for our tax returns.
I am not sure of the relevance of this?
Wherever you live, you will need pension savings/payments to be as high as possible.
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We’re planning to downsize our house after a year in Scotland (the mortgage is paid off) and we have other means of income. The reason for not remaining in Switzerland is simple, it’s too expensive.
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