Part-Time Work and Retirement Planning – What You Need to Know
Around 1.7 million people in Switzerland are currently working part-time – that’s approximately 37.6% of the workforce. Many choose this work arrangement intentionally to better balance career and family life. However, what is often overlooked is that a reduced workload can directly impact your retirement savings. The key factor here is the so-called coordination deduction.
In the picture: Granit Kabashi, Head of Sales German-speaking Switzerland and Ticino at Tellco
What is the Coordination Deduction?
The coordination deduction is a fixed amount deducted from your annual income subject to AHV (Swiss Old Age and Survivors’ Insurance) before contributions are made to your occupational pension plan. In 2025, it amounts to exactly CHF 26,460 and is intended to prevent double insurance with the AHV.
Granit Kabashi, a pension and BVG expert at Tellco, explains this clearly: “The relevant factor is the insured salary, which is calculated by subtracting the coordination deduction from your annual AHV salary.” The smaller your workload and therefore your income, the more significant this deduction’s impact on your retirement savings.
Multiple Part-Time Jobs – Special Challenges
Things become particularly complicated when you have several part-time jobs simultaneously. “The coordination deduction is calculated separately for each employment. This can result in your overall insured salary being lower than if you were employed by just one employer,” says Kabashi.
A practical solution could be for employers to adjust the coordination deduction proportionately to the actual workload. Kabashi highlights the benefit: “This allows a larger portion of the salary to be insured, which is especially advantageous for part-time employees.” However, since not every pension fund offers this option, it is advisable to check directly.
Hourly Wages and Short-Term Jobs – What to Watch Out For
If you work on an hourly wage basis, your insured salary is automatically adjusted to your workload. Kabashi explains: “In the case of temporary work, the insured monthly salary is calculated directly from the hourly wage.” Here, you should carefully ensure “that the employer transfers the legally required minimum amount to the pension fund.”
For short-term employment lasting less than three months, BVG (Swiss Occupational Pensions Act) requirements often do not apply. Kabashi therefore strongly recommends closing any pension gaps through voluntary contributions or payments into the third pillar: “The third pillar is generally always a good idea.”
For more valuable information and practical tips, you can read the full article by Olivia Ruffiner in the Schweizer Illustrierte or Blick.