This article explains how the occupational benefit scheme is regulated if you work for one or more companies via Coople. With this information, you can understand in which cases BVG deductions are visible on your payslip and how they are calculated.
What does BVG mean?
BVG stands for “Bundesgesetz über die berufliche Alters-, Hinterlassenen- und Invalidenvorsorge” (Federal Law on Occupational Retirement, Survivors' and Disability Pension Plans). The BVG determines who must be insured in the employer's pension fund.
Occupational pension provision is the second pillar of the Swiss pension system for old age, disability, or death.
The first pillar is 675 the old-age and survivors' insurance (OASI / AHV), which is compulsory for everyone. The third pillar (private pension), on the other hand, is voluntary.
Which pension fund is Coople affiliated with?
Coople is insured with the pension fund of Swissstaffing, the employers' association of the personnel services industry in Switzerland, and thus with the pension fund solution specifically created for temporary employment.
This pension fund solution has advantages for temporary workers, as the coordination deduction* is calculated on an hourly basis. On the one hand, this enables precise accounting of short assignments. On the other hand, the entry threshold for compulsory insurance is reached faster than is the case with other flexible or part-time employment relationships.
You can find detailed information on benefits, services, and frequently asked questions in the information sheet for temporary workers of the Swissstaffing Second-Pillar Foundation. You can also go to the website of the Swissstaffing BVG pension fund.
The following information will help you to understand in which cases BVG deductions are shown on your payslip and how they are calculated.
* The coordination deduction is used to determine the wage insured by the pension fund. This corresponds to 7/8 of the maximum AHV annual pension and is CHF 25,095 in 2021. Calculated down to the hourly wage, the coordination deduction in 2021 is CHF 11.45. The coordination amount must be deducted from the basic wage, as this amount is already insured with the AHV compensation fund.
Who is insured?
According to the provisions of the BVG, Coople as an employer is obliged to join an occupational benefits institution and to insure its workers. The CBA Staff Leasing specifies in which cases the BVG obligation exists.
The start of the BVG obligation on the basis of the CBA Staff Leasing depends on the type and length of the assignment, as well as on the personal situation of the worker.
The insurance obligation exists in the following cases:
Workers with support obligations towards children: compulsory from day 1.
If you have underaged children or children under the age of 25 who live with you and are in education, please tick the box “I am responsible for paying child maintenance” in your profile under “Right to work – More required information” so that we have this information in good time.
Workers with an indefinite contract period or contracts entered into for a period longer than 3 months: compulsory from day 1.
In case of extension of an existing contract for more than 3 months: compulsory from the date of knowledge of the extension.
From the 14th working week: always compulsory
For all benefits defined by the duration of the worker's employment with Coople, assignments performed within 12 months are added together.
Voluntary insurance option
For all workers who are not compulsorily insured for BVG, there is a voluntary insurance option from day 1. If you would like to pay BVG contributions before the start of compulsory insurance, please contact us by e-mail at email@example.com. Our payroll team will then deduct the contributions from your wage as of the next wage run.
Which wage is insured?
The insured monthly wage can be calculated according to the following example (figures from 2021):
Hourly wage, from which the AHV contributions are deducted: (max. CHF 39.35, corresponds to the BVG maximum calculated per hour): CHF 25.75 (= possible gross wage per hour).
Coordination amount to be deducted: CHF 11.45
Insured hourly wage (min. CHF 1.65): CHF 14.30
Multiplied by the effective working hours during the month: 150 (= your working hours per month)
Insured monthly wage: CHF 2,145.00
How much is deducted from the insured wage?
The maximum and minimum amounts as well as the coordination amount are determined annually and published by the Swissstaffing Second-Pillar Foundation.
The contribution depends on your age and is paid on the insured wage. The contribution includes the mandatory savings element as well as the risk and administrative costs. Coople, as your employer, pays the same amount.
The contributions for 2021 are shown in the table below:
18- to 24-year-olds:
of which 0.0% savings element
25- to 34-year-olds:
of which 3.5% savings element
35- to 44-year-olds:
of which 5.0% savings element
45- to 54-year-olds:
of which 7.5% savings element
55-year-olds until retirement:
of which 9.0% savings element
If you have already reached the normal retirement age, no BVG contributions are due.
Do you need further help?
The Swissstaffing Second-Pillar Foundation website has a lot of useful information on the subject that can help you.