LPP contributions 2027 at a glance
- Calculation base: the coordinated salary, meaning your AHV salary capped at CHF 92,160 minus the coordination deduction of CHF 26,880.
- Legal rates: 7% from age 25 to 34, 10% from 35 to 44, 15% from 45 to 54, 18% from 55 to the reference age.
- Split: the employer funds at least 50% of the total (art. 66 LPP). Your share is deducted from gross salary.
- Entry threshold: CHF 23,040 of annual salary from 1 January 2027, up from CHF 22,680 in 2026.
- 2027 effect: below roughly CHF 91,140, the coordinated salary drops by CHF 420 and contributions fall slightly.
- Interest: the minimum interest rate rises from 1.25% to 2% on 1 January 2027 (Federal Council decision of 4 November 2026).
LPP contributions are the amounts deducted from your salary each month, and matched by your employer, to fund your 2nd pillar. In 2027 they are calculated on the coordinated salary, at a rate of 7% to 18% depending on your age, with at least half borne by the employer. On a salary of CHF 85,000 at age 40 under a minimum legal plan, the deduction on the payslip comes to CHF 242 per month.
This page sets out how LPP contributions are calculated using the threshold amounts applicable from 1 January 2027, with a calculator and the distinction between mandatory and extra-mandatory contributions.
LPP contribution calculator 2027
Enter your salary, your age and the type of plan your pension fund runs. The calculator applies the 2027 threshold amounts and projects your retirement assets at the new 2% minimum interest rate.
Occupational pension contribution calculator
2027 threshold amounts and the 2% minimum interest rate.
What is an LPP contribution?
An LPP contribution funds occupational pension provision, the 2nd pillar of the Swiss retirement system. It is mandatory for any employee subject to AHV whose annual salary with a single employer reaches the entry threshold, set at CHF 23,040 in 2027. The obligation comes from article 2 LPP.
The "LPP" line on your payslip actually covers three separate items, which do not all go to the same place.
- The retirement credit: the savings portion, credited to your pension assets. This is the only part that belongs to you and appears on your certificate.
- The risk premium: cover for death and disability. It works like an insurance premium and builds no capital.
- Costs: fund administration and the contribution to the LPP guarantee fund.
Only the retirement credit builds your pension capital. The statutory rates of 7% to 18% apply to that component alone. Risk premiums and costs are added on top, at levels that vary from one fund to another. To see exactly what your fund deducts, the reference document is your pension certificate, which the institution sends every year.
What are the LPP threshold amounts in 2027?
The Federal Council raised AHV pensions by 1.59% on 1 January 2027, lifting the maximum retirement pension to CHF 2,560 per month. All occupational pension threshold amounts follow automatically, because the law defines them as fractions of that pension.
| Threshold amount | 2026 | 2027 | Change |
|---|---|---|---|
| Entry threshold (minimum annual salary) | CHF 22,680 | CHF 23,040 | +CHF 360 |
| Coordination deduction | CHF 26,460 | CHF 26,880 | +CHF 420 |
| Upper limit of annual salary | CHF 90,720 | CHF 92,160 | +CHF 1,440 |
| Maximum coordinated salary | CHF 64,260 | CHF 65,280 | +CHF 1,020 |
| Minimum coordinated salary | CHF 3,780 | CHF 3,840 | +CHF 60 |
| Maximum insurable salary (art. 79c LPP) | CHF 907,200 | CHF 921,600 | +CHF 14,400 |
| Access threshold for 1e plans | CHF 136,080 | CHF 138,240 | +CHF 2,160 |
The 2027 amounts derive from the maximum AHV pension of CHF 30,720 per year: three quarters for the entry threshold (CHF 23,040), seven eighths for the coordination deduction (CHF 26,880), three times for the upper limit (CHF 92,160) and one eighth for the minimum coordinated salary (CHF 3,840).
How do you calculate your LPP contributions?
The calculation has four steps, the ones the calculator at the top of this page applies. It gives the retirement credit, which is the main part of the contribution.
- Check the threshold: your annual salary with a single employer must reach CHF 23,040.
- Cap the salary: the mandatory scheme only counts the AHV salary up to CHF 92,160.
- Subtract the coordination deduction: remove CHF 26,880 to get the coordinated salary, between CHF 3,840 and CHF 65,280.
- Apply the rate: multiply by 7%, 10%, 15% or 18% depending on your age, then divide by two for your share.
Worked example for 2027
Take an employee aged 40 on an annual salary of CHF 85,000, in a fund that applies the legal minimum.
- Coordinated salary: 85,000 minus 26,880 = CHF 58,120.
- Applicable rate: 10%, the 35 to 44 age band.
- Total annual contribution: CHF 5,812.
- Employee share: CHF 2,906 per year, meaning CHF 242 per month deducted from gross salary.
- Employer share: CHF 2,906 per year as a minimum, often more.
What are the LPP contribution rates by age?
Article 16 LPP sets four retirement credit rates, rising by age band. They apply to the coordinated salary, not to gross salary. They are the same for men and women and did not change in 2027.
| Age band | Total rate | Employee share (max.) | Employer share (min.) |
|---|---|---|---|
| 18 to 24 | 0% | Risk only | Risk only |
| 25 to 34 | 7% | 3.5% | 3.5% |
| 35 to 44 | 10% | 5% | 5% |
| 45 to 54 | 15% | 7.5% | 7.5% |
| 55 to the reference age | 18% | 9% | 9% |
Age bands run by calendar year. You move to the higher rate on 1 January of the year of your 35th, 45th or 55th birthday.
How much will come off your salary each month in 2027?
The table below gives the monthly employee share under a minimum legal plan, with a 50/50 split. It covers the retirement credit, excluding risk premiums and costs.
| Annual salary | Age 25-34 | Age 35-44 | Age 45-54 | Age 55+ |
|---|---|---|---|---|
| CHF 30,000 | CHF 11 | CHF 16 | CHF 24 | CHF 29 |
| CHF 50,000 | CHF 67 | CHF 96 | CHF 145 | CHF 173 |
| CHF 70,000 | CHF 126 | CHF 180 | CHF 270 | CHF 323 |
| CHF 90,000 | CHF 184 | CHF 263 | CHF 395 | CHF 473 |
| CHF 92,160 and above | CHF 190 | CHF 272 | CHF 408 | CHF 490 |
Monthly amounts in francs, rounded. Under the mandatory scheme the contribution plateaus from CHF 92,160 of salary: a salary of CHF 200,000 gives the same row as CHF 92,160, unless the employer insures the extra-mandatory portion.
At CHF 30,000 the contribution looks trivial. That comes from the coordination deduction: 30,000 minus 26,880 gives CHF 3,120, below the minimum coordinated salary of CHF 3,840, which then applies. Low salaries and part-time roles are therefore thinly covered under the mandatory scheme, an effect that a review of your retirement planning can quantify.
Who pays LPP contributions?
The employer funds at least half of the total. Article 66 LPP requires its contribution to be at least equal to the sum of the contributions of all its employees. In practice your share is deducted from your gross salary and the employer pays the full amount to the pension fund, as the sole debtor.
Two nuances are worth knowing. First, the rule is collective rather than individual: the employer must reach 50% of the total across the whole workforce, which leaves room to vary the split between categories of staff. Second, nothing prevents an employer from funding 60%, two thirds, or the entire contribution. It is a genuine part of your remuneration.
Worth comparing before you sign: two job offers on the same gross salary can differ by several hundred francs a month in retirement savings. The pension plan is set out in the fund regulations, which the employer must give you.
Mandatory or extra-mandatory contributions: what is the difference?
Mandatory contributions are the legal minimum: the article 16 LPP rates applied to a coordinated salary capped at CHF 65,280 in 2027. Extra-mandatory contributions cover everything the employer insures beyond that, whether a higher portion of salary or higher rates. The distinction is invisible on the payslip, but it appears on the pension certificate, which separates mandatory from extra-mandatory assets.
An employer can go beyond the minimum in three ways: reduce or remove the coordination deduction, insure salary above CHF 92,160 (up to CHF 921,600 under art. 79c LPP), or apply higher retirement credit rates. The resulting gap is substantial.
| Plan | Insured salary | Total contribution | Employee share | Capital at 65 |
|---|---|---|---|---|
| LPP minimum (coordination CHF 26,880) | CHF 65,280 | CHF 9,792/yr | CHF 408/month | CHF 259,000 |
| Reduced coordination (CHF 13,440) | CHF 106,560 | CHF 15,984/yr | CHF 666/month | CHF 423,000 |
| Full salary, employer 60% | CHF 120,000 | CHF 18,000/yr | CHF 600/month | CHF 477,000 |
Total contribution shown at the 15% rate applicable at age 45. Capital built between ages 45 and 65, constant salary, 2% interest per year, with the move to the 18% rate from age 55. The gap between the first and third plan reaches CHF 218,000, around CHF 14,800 of additional annual pension at the 6.8% conversion rate. All three scenarios can be reproduced in the calculator above.
The distinction also matters when you draw on your 2nd pillar. The minimum conversion rate of 6.8% applies only to the mandatory portion: funds often apply a lower rate to extra-mandatory assets, which weighs on the choice between pension or lump sum. It also counts when leaving Switzerland, since only the extra-mandatory portion can be paid out in cash to an EU or EFTA country, a central point covered in our guide to the taxation of 2nd pillar withdrawals.
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What changes on 1 January 2027?
Two developments affect LPP contributions in 2027. The first is counter-intuitive: for most employees, contributions fall slightly. The coordination deduction rises by CHF 420, more than the increase in salary counted for middle incomes, which reduces the coordinated salary by the same amount.
| Age band | Salary below CHF 91,140 | Salary from CHF 92,160 |
|---|---|---|
| 25 to 34 | -CHF 15/yr | +CHF 36/yr |
| 35 to 44 | -CHF 21/yr | +CHF 51/yr |
| 45 to 54 | -CHF 32/yr | +CHF 77/yr |
| 55 and above | -CHF 38/yr | +CHF 92/yr |
Change in the employee share under a minimum legal plan with an equal split. The tipping point sits at CHF 91,140 of annual salary. Below it, the coordinated salary falls by CHF 420. Above CHF 92,160, it rises by CHF 1,020.
A lower contribution also means lower savings. Over a career the effect stays marginal, but it illustrates a structural mechanism: the coordination deduction penalises modest incomes proportionally more.
The entry threshold excludes new employees
The entry threshold rises from CHF 22,680 to CHF 23,040. Anyone whose annual salary falls between those two amounts leaves mandatory cover on 1 January 2027. If this affects you, ask your employer whether the fund applies the statutory threshold or a lowered one, as many plans do.
The minimum interest rate rises to 2%
On 4 November 2026 the Federal Council decided to raise the minimum interest rate from 1.25% to 2% from January 2027. This rate is not a contribution: it sets the minimum return on mandatory pension assets. It does not change the amount deducted from your salary, but it increases the return on every franc already paid in. The government pointed to an average coverage ratio of 122.5% at the end of August 2026 and an average return of 6.1% in 2025.
What are the special cases?
- Before age 25: only death and disability risk premiums are deducted, from 1 January after the 17th birthday. Saving starts on 1 January after the 24th birthday.
- Several employers: each employment relationship is assessed separately against the CHF 23,040 threshold. If the total exceeds it without any single job reaching it, voluntary cover with the substitute occupational benefit institution is possible.
- 13th salary and bonuses: the 13th salary forms part of the relevant AHV salary and therefore counts. Treatment of bonuses and commissions depends on the fund regulations.
- Part-time work: the law does not require the coordination deduction to be adjusted to the activity rate, but many funds do so. Worth checking, as it changes the insured salary considerably.
- Incapacity for work: after a waiting period set by the regulations, waiver of premium keeps the savings going with no deduction from salary.
- Self-employed: no obligation to contribute. Voluntary affiliation is provided for by article 4 LPP, and the conditions are set out in our guide to the 2nd pillar.
- Cross-border workers: an employee of a Swiss employer contributes to the LPP on the same terms as a resident, whatever their place of residence. The rules differ on withdrawal, not on contribution. See our guide to retirement planning for cross-border commuters.
Are LPP contributions tax deductible?
Yes. Ordinary contributions are deductible from taxable income under article 33 para. 1 let. d DBG. You need do nothing: your share is already removed from the net salary shown on your salary certificate, so the deduction is applied automatically.
Voluntary buy-ins work differently. They are declared separately and create an additional deduction in the year of payment, which makes them a tax tool often used late in a career. The rules, including the three-year lock-up before any lump-sum withdrawal, are covered in our guide to the 2nd pillar. The buy-in potential available to you appears on your pension certificate.
Frequently asked questions
What is the LPP contribution rate in 2027?
The legal minimum is 7% of the coordinated salary from age 25 to 34, 10% from 35 to 44, 15% from 45 to 54 and 18% from 55 to the reference age. The employer funds at least half.
How are LPP contributions calculated?
Take your AHV salary, capped at CHF 92,160, subtract the coordination deduction of CHF 26,880 to get the coordinated salary, then apply the rate for your age band. Divide by two for your employee share.
What is the minimum salary for LPP contributions in 2027?
The entry threshold rises to CHF 23,040 of annual salary with a single employer on 1 January 2027, up from CHF 22,680 in 2026. Below that, mandatory occupational pension cover is not required.
Are LPP contributions rising in 2027?
No, not for most employees. The coordination deduction rises faster than the upper limit, cutting the coordinated salary by CHF 420 for salaries below roughly CHF 91,140. Above that, contributions increase.
Do you pay LPP contributions before age 25?
Yes, but only risk premiums for death and disability, from 1 January after your 17th birthday. Retirement savings credited to your pension assets only start on 1 January after your 24th birthday.
What is the difference between mandatory and extra-mandatory contributions?
Mandatory contributions are the LPP legal minimum, calculated on a coordinated salary capped at CHF 65,280 in 2027. Extra-mandatory contributions cover the salary portion or the rates an employer insures beyond that minimum.
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Book an appointmentThis article provides general information on occupational pension provision and does not constitute personalised advice.
Sources: Federal Social Insurance Office, occupational pension threshold amounts; Federal Council, press release on the LPP minimum interest rate, 4 November 2026; AHV pension adjustment of 2 October 2026. Figures verified on 6 November 2026.