April 15, 2024

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Social security contributions are also threatened in Switzerland!

Social security contributions are also threatened in Switzerland!

The Germans will soon have to pay half their wages. A similar situation may be threatened in Switzerland. Not due to 13th AHV pension.

Even in Switzerland, you'll have less in your wallet at the end of the month. – Keystone

The essentials in a nutshell

  • According to projections, Germans will have to pay up to half of their wages by 2035.
  • Experts say social security contributions may continue to rise in Switzerland.
  • However, most of this burden has to be borne by politicians.

Germans will soon have even less in their wallets at the end of the month. By 2035, a single, childless median earner will pay 51.75 percent of their wages to the government!

Bild newspaper recently calculated this and sent our northern neighbor into a frenzy.

Now Nau.ch's economists warn: There is also a risk of a tax hammer in Switzerland!

“Compared to its neighbours, Switzerland is not doing as well as many people think,” says Jérôme Gossante. He is head of research on sustainable social policy at the liberal think tank Avenir Suisse.

A direct comparison with Germany is difficult

The Swiss actually have more at the end of the month. “However, in Germany, the things we finance through taxes and contributions are also deducted from our wages,” Gossante explains.

This includes payroll tax directly deducted in Germany. or health insurance contributions that we finance with premiums.

“If we look at all the mandatory lines, Switzerland is in the upper European midfield, right between Germany and Austria,” says the expert.

About 40 percent of Switzerland's gross domestic product (GDP), government inputs and expenditures are high. The ratio is higher in Scandinavian countries or France and lower in the UK or the US.

Expenditure on welfare state increases

Cosandey warns: “Costs in Switzerland are also continuing to rise.” As in Germany, this is largely due to the demographics of the community. “Pensions are costing more, health care costs are rising, and more investment needs to be made in education.”

Jerome Gossante of Avenir Suisse warns of high social security contributions in Switzerland. – Keystone

Stefan Heini from the employers' association also told Nau.ch: “The cost of social insurance has been increasing in Switzerland for years. This trend is expected to continue,” he said.

Cosandey of Avenir Suisse says: Unlike in Germany, it is not possible to calculate who will pay how much of these costs. “It depends on which fiscal politicians decide.”

13. AHV pensions cause additional financial problems

A good example is the recently adopted 13th AHV pension fund. “It can be financed through wage percentages, VAT or additional progressive taxes. Depending on the choice, the greatest burden is borne by working people, the population as a whole or, in the latter case, high income earners.

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Nau.ch/Nico Leuthold – Pensioners of Frick AG explain what they will do with the 13th AHV.

SGB ​​Chief Economist Daniel Lampard tells Nau.ch that wage contributions have fallen in recent years due to fewer unemployed people and fewer accidents. That's why he firmly believes: “The 13th AHV can be financed from wage contributions no more than before 2020.”