If you employ staff who have reached the normal retirement age, special rules apply to social security contributions. In bexio, you can flexibly choose whether to apply the statutory exemption or whether the employee voluntarily waives it.
1. The statutory standard (with a tax-exempt allowance)
Employees who have reached retirement age and continue to work are eligible for a tax-exempt allowance. No contributions to the AHV, IV, or EO are required on this portion of their salary.
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Tax-free allowance: CHF 1,400.00 per month (or CHF 16,800.00 per year).
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ALV-mandatory: This requirement does not apply to retirees at all, regardless of their income level.
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Obligation to contribute: Only the portion of wages that exceeds the exemption limit of CHF 1,400.00 is subject to AHV/IV/EO contributions.
2. Waiver of the tax-free allowance (full AHV)
Since the AHV reform (January 1, 2024), retirees have had the option to voluntarily waive the tax-free allowance. This can be a useful way to close contribution gaps or increase future pension benefits (up to the maximum pension).
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Requirement: The employee must notify the employer by the first payday of the relevant year that he or she wishes to waive the tax-free allowance.
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Effect: The entire gross salary is subject to AHV contributions starting from the first franc.
3. Configure settings in bexio
To ensure accurate payroll processing, you must enter this information in the employee profile:
Step-by-step:
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Go to Payroll > Employees and select the appropriate person.
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Open the Insurance tab.
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Scroll down to the Social Security / AHV section.
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Here you will find the field for mandatory AHV contributions during retirement:
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Option A (Standard): Select “Apply exemption” if you want only the amount exceeding CHF 1,400.00 to be subject to tax.
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Option B (waiver: Select “Waive the tax-free allowance” if you want your entire salary to be taxed starting from the first franc.
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Save your entry.
4. Important Information
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Change during the year: The decision (tax-free allowance or waiver) generally applies for the entire calendar year. A change during the year is possible only in exceptional cases (e.g., when starting a new job).
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Wage statement: bexio automatically reports contributions correctly on the pay stub based on your settings.
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UVG/KTG: The requirement to have accident (UVG) and daily sickness benefit (KTG) insurance remains in effect unless your insurance policy specifies an age limit. Please check your insurance policy for details.
Please inform your employees who are eligible for retirement benefits in a timely manner at the end of the year about their options so that you can set up payroll correctly for the new year.