From January 1st, 2025, first-pillar state pension, as well as disability pension, will increase by 2.9 percent, the Federal Council announced on Wednesday.
That’s because every two years, the government must check whether the pensions need to be adjusted to inflation and wage developments — and they do have to be next year.
This is what you can expect in 2025:
Higher AHV / AVS
The minimum pension will go up by 35 francs to 1,260 francs a month, while the maximum amount will increase by 70 francs from 2,450 to 2,520 a month.
Child allowance
This will go up from 200 to 215 francs a month per child, and the training allowance will increase from 250 to 268 francs per month. (The former is a payment for children up to the age of 16, and the latter for those aged 16 to 25, who are undergoing education).
Family allowances are intended to partially offset parents’ costs for child support. The federal government sets a minimum rate per child per month, and individual cantons can add to that amount from their own coffers.
READ ALSO: What welfare benefits can you get if you have children in Switzerland?
Supplementary benefits
These are meant to provide more money to cover general living expenses for low earners: for single people, the amount increases from 20,100 to 20,670 francs per year, for married couples from 30,150 to 31,005 francs per year, for children over 11 years of age to 10,815 francs, and for children under 11, to 7,590 francs.
In addition, the amounts of rent subsidies (also for eligible low earners) will go up as well: in major cities, the annual maximum amount will be 18,900 francs, in smaller towns 18,300 francs, and in rural areas 16,680 francs.
The flat rate for ancillary and heating costs is also being adjusted: it will increase from 3,060 to 3,480 francs per year.
All of these hikes will cost the federal government 22 million francs and the cantons 13 million francs, the Federal Council said.
Earned income deductible
The tax-free allowances on earned income will also be adjusted to the wage development according to the wage index by 2025.
They will go up from 1,000 to 1,300 francs per year for single people, and from 1,500 to 1,950 francs per year for married couples and people with children.
This will result in additional costs for the federal government and the cantons of 11 million francs.
And these are deductions you will be able to make on your 2025 tax return — if you qualify, that is:
READ ALSO: Swiss government to adjust tax rates and deductions
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