Switzerland’s 2025 Pension and Tax Updates

Starting in 2025, families and retirees in Switzerland will receive higher pensions and increased family allowances, as confirmed by the Federal Council. Changes to the tax system will begin in 2026.

Key Pension and Allowance Changes:

1. Pension and Disability Increases:
   • From 2025, pensions and disability payments will increase by 35 francs to 1,260 francs per month.
   • All pensioners will see a 2.9% increase, with maximum pensions rising from 2,450 to 2,520 francs monthly.
2. 13th Month Pension:
   • Starting in 2026, retirees will receive an extra month of pension payments, providing at least 1,260 francs more per year.
3. Higher Family Allowances:
   • The minimum child allowance will increase by 7.1%, from 200 to 215 francs per month per child.
   • Allowances for children in education will rise from 250 to 268 francs monthly.

Tax Changes in 2025:

1. Income Tax Adjustments:
   • Federal income tax brackets will shift, reducing tax rates for all. For married couples, tax starts at incomes over 29,700 francs, up from 29,300 francs.
   • For individuals, the tax-free allowance will rise to 15,200 francs.
2. Improved Tax Deductions:
   • Deductions for those with children or dependents will increase to 6,800 francs per year.
   • Students can deduct up to 13,000 francs annually, up from 12,900.

When Will Changes Take Effect?

Pension and allowance increases start in 2025. Tax changes will apply to the 2025 tax year, affecting returns filed in 2026.