How does the Swiss second pillar work in 2026?
The 2026 rules for the Swiss second pillar (BVG): entry threshold, coordination deduction, cash payments when moving to Hungary, and use for home ownership.
Table of contents
- What is the second pillar, and why is it important for people arriving from Hungary?
- Who is required to join the Swiss second pillar?
- What deductions and thresholds apply in 2026?
- Why is it important to distinguish between the mandatory and above-mandatory portions?
- What happens to the capital if I move to Hungary?
- When can a cash payment be requested, and what is the role of Sicherheitsfonds BVG?
- What is the role of Sicherheitsfonds BVG in this process?
- Can the second pillar be used to purchase a home in Hungary?
- Sources
- Related Articles
What is the second pillar, and why is it important for people arriving from Hungary?
The Swiss pension system is based on three pillars. The first pillar is the state basic pension (AHV/AVS), the second pillar is the occupational pension scheme (berufliche Vorsorge / BVG), and the third pillar consists of voluntary private savings.
The essence of the second pillar is that the employee and employer jointly contribute to a pension fund (Pensionskasse). These savings accumulate in the employee’s name and move with them when they change jobs or place of residence.
From a Hungarian perspective, this is a key issue because significant capital can accumulate over the years, which may become partly accessible when returning home or moving to another EU Member State. However, the rules draw a clear distinction between the mandatory and supplementary portions — a distinction emphasised throughout this article.
The operation of the second pillar is governed by the federal law BVG (SR 831.40). According to the dossier notes, the 2026 thresholds are uniform throughout Switzerland, irrespective of canton.
Who is required to join the Swiss second pillar?
Membership is mandatory for all employees whose gross annual income from a single employer exceeds CHF 22,680 in 2026.
This entry threshold (Eintrittsschwelle) is the minimum income level above which the employer must register the employee with a pension fund. The threshold is uniform at federal level, with no cantonal variations.
The obligation applies regardless of nationality. As a Hungarian citizen, you are part of the system under the Agreement on the Free Movement of Persons (FZA, 1999), just like any Swiss employee.
A few practical points:
The threshold must be assessed separately for each employer.With several part-time jobs, it may happen that none reaches the threshold, even though the total income does.
For self-employed persons (Selbständigerwerbende), the second pillar is generally not mandatory, but they may join voluntarily.
Insurance begins when employment starts, and the employer registers the employee with its own pension fund.
What deductions and thresholds apply in 2026?
In the second pillar, contributions are not calculated on the full salary, but on the so-called coordinated salary (koordinierter Lohn), which is the amount remaining after the coordination deduction (Koordinationsabzug).
The federally uniform values applicable for 2026 are as follows:
Term (Hungarian / German) | 2026 values |
|---|---|
Entry threshold (Eintrittsschwelle) | CHF 22,680/year |
Coordination deduction (Koordinationsabzug) | CHF 26,460 |
Maximum mandatory insured salary (Oberer Grenzbetrag) | CHF 90,720/year |
Minimum coordinated salary (koordinierter Lohn) | CHF 3,780 |
Maximum coordinated salary | CHF 64,260 |
BVG minimum interest rate (Mindestzinssatz) | 1.25%/year |
Source: valitas.ch, BVG key figures as of 01.01.2026. The values are uniform throughout Switzerland.
The coordinated salary is the amount on which pension contributions are actually calculated. The calculation principle is as follows: the coordination deduction (CHF 26,460) is deducted from the gross salary, and the remaining amount is insured — subject to a minimum of CHF 3,780 and a maximum of CHF 64,260.
Mandatory (obligatorisch) insurance applies to salary up to CHF 90,720. Insurance for the portion of salary above this amount depends on the pension fund regulations; this is the above-mandatory (überobligatorisch) portion.
The minimum annual interest credited to the mandatory portion is 1.25% in 2026. This is the statutory minimum; a well-performing fund may credit more.
Why is it important to distinguish between the mandatory and above-mandatory portions?
This distinction becomes particularly important when moving abroad. The mandatory portion (BVG minimum) and the above-mandatory portion (überobligatorischer Teil) may be paid out under different rules if you leave Switzerland. The two portions are generally shown separately on the pension statement (Vorsorgeausweis).
What happens to the capital if I move to Hungary?
If you change jobs or leave Switzerland, your accumulated capital is not lost: it can be transferred as a termination benefit (Austrittsleistung / Freizügigkeitsleistung).
There are two basic scenarios:
1. Changing jobs within Switzerland.The capital is transferred to the pension fund of the new employer. If there is temporarily no new pension fund, it is transferred to a vested benefits account (Freizügigkeitskonto).
2. Permanently moving to Hungary or another EU Member State.This is where the treatment of the mandatory and the above-mandatory portions differs.
The general rule is that if a Hungarian citizen permanently leaves Switzerland and moves to an EU Member State — such as Hungary — the statutory mandatory portion (BVG-Minimum / obligatorischer Teil) cannot be paid out in cash if they are subject to compulsory state pension insurance in their new country of residence.
The exception is that the portion above the mandatory minimum (überobligatorischer Teil) may be withdrawn in cash without restriction upon leaving Switzerland (Barauszahlung).
What does this mean in practice? If you enter into employment in Hungary or otherwise become subject to compulsory Hungarian social security (TB), the mandatory portion cannot be withdrawn in cash. In this case, the amount remains in a Swiss vested benefits account (Freizügigkeitskonto) or vested benefits policy and becomes accessible as retirement age approaches.
This rule is directly linked to Hungarian pension coordination: the prohibition on cash payment applies precisely because compulsory state pension insurance continues within the EU.
When can a cash payment be requested, and what is the role of Sicherheitsfonds BVG?
The entire capital — including the mandatory portion — can be paid out in cash if the person concerned is not subject to compulsory state pension insurance in their new country of residence.
This typically applies if someone is not working or is exempt from compulsory insurance due to another status. In such cases, the entire accumulated capital can be withdrawn.
The key question is therefore always the same: does compulsory state pension insurance apply in the new country of residence? If so, the mandatory portion remains in the account. If not, the full amount can be paid out.
What is the role of Sicherheitsfonds BVG in this process?
The BVG Guarantee Fund (Sicherheitsfonds BVG), based in Bern, assesses whether the entire capital can be paid out, following submission of the official form.
The Guarantee Fund verifies whether compulsory state pension insurance applies in the new country of residence. This institution plays a central role in determining whether the mandatory portion can be paid out.
The practical steps, in broad terms, are:
Notifyingthe pension fund of the departure, with proof of permanent departure.
The non-mandatory portioncan be withdrawn in cash, potentially immediately.
The mandatory portionrequires proof to the Sicherheitsfonds BVG that no compulsory state pension insurance applies in the new country of residence.
Important warning: a cash withdrawal may have significant tax implications, and the decision is irreversible. The specific procedure and required forms may vary from one pension fund to another — these should always be checked with the relevant pension fund and the Sicherheitsfonds BVG.
Can the second pillar be used to purchase a home in Hungary?
Yes. Capital accumulated in the second pillar may also be used as an early withdrawal (Vorbezug) to purchase or build residential property abroad — including in Hungary — or to repay a mortgage. This falls under the home ownership promotion scheme (Wohneigentumsförderung / WEF).
However, its use is subject to strict conditions.
Condition — own permanent residence.The property may be used exclusively as the applicant’s own permanent residence. It cannot be used for a holiday home or property intended for rental.
Documentation requirement.Insured persons living abroad must provide credible evidence to the pension fund that the amount paid out will actually be used for owner-occupied property.
In practice, this documentation requirement entails considerable administration for property abroad: the pension fund requires supporting documents, proof of ownership and evidence that the property will serve as the person’s own residence.
An early withdrawal for housing purposes is therefore not an automatic entitlement: both the requirement of own permanent residence and the documentation obligation apply. This option is not available to anyone wishing to purchase a holiday home or an investment property to be rented out.
Sources
valitas.ch — https://valitas.ch/media/4289/independa_bvg_kennzahlen_01.01.2026.pdf
abacus.ch — https://downloads.abacus.ch/fileadmin/ablage/dokumente/06_weitere_applikationsdokumente/lohnbuchhaltung/de/Abacus-Lohnbuchhaltung-Jahresendinfo-2026-de.pdf
ahv-iv.ch — https://www.ahv-iv.ch/p/10.03.e
Sicherheitsfonds BVG —
pksh.ch — https://www.pksh.ch/wp-content/uploads/2016/01/SVV-Barauszahlung-Autrittsleistung-ab-1.6.2007.pdf
swissstaffing-bvg.ch — https://www.swissstaffing-bvg.ch/de/versicherte/faq/austritt/auszahlung_freizuegigkeitsleistung_privatkonto.php
EDA (Swiss Federal Department of Foreign Affairs, AHV/IV) —
admin.ch (federal administration) —
nest-info.ch (Merkblatt Ausreise) —
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In Brief
In 2026, enrolment in the Swiss second pillar is compulsory if gross annual income from a single employer exceeds CHF 22,680. When moving to Hungary, the mandatory BVG portion generally cannot be withdrawn in cash if the person becomes subject to compulsory Hungarian state pension insurance, whereas the non-mandatory portion may be withdrawn. The full amount can only be paid out if no compulsory state pension insurance applies in the new country of residence.
Key Takeaways
- Check whether your gross annual income from the same employer exceeds the 2026 entry threshold of CHF 22,680.
- When calculating contributions, use the coordinated salary—reduced by the coordination deduction—rather than the full salary; it ranges from CHF 3,780 to CHF 64,260.
- Check the mandatory and non-mandatory portions of your pension capital separately in the Vorsorgeausweis, as different rules apply to them when moving abroad.
- Before moving to Hungary, establish whether compulsory state pension insurance applies in the new country of residence; this determines whether the mandatory portion can be paid out in cash.
- Notify the pension fund of your departure and check the required documentation as well as the Sicherheitsfonds BVG procedure.
- For an advance withdrawal to finance housing in Hungary, demonstrate that the property will serve as your own permanent residence; holiday homes and rental properties do not qualify.
Frequently Asked Questions
Who is required to join the Swiss second pillar in 2026?
Employees must join if their gross annual income from the same employer exceeds CHF 22,680. The threshold is uniform at federal level and applies to employees regardless of nationality.
What salary is used to calculate second-pillar contributions?
Contributions are calculated not on the full gross salary but on the coordinated salary. The coordination deduction of CHF 26,460 is deducted from gross salary; in 2026, the coordinated salary is at least CHF 3,780 and no more than CHF 64,260.
What happens to the Swiss second pillar if I move to Hungary?
The accumulated capital is not lost. If the person becomes subject to compulsory state pension insurance in Hungary, the mandatory BVG portion generally cannot be paid out in cash and remains in a Swiss vested benefits account or vested benefits policy; the non-mandatory portion may be withdrawn.
When can the entire second-pillar capital be paid out in cash?
The full capital, including the mandatory portion, can be paid out if no compulsory state pension insurance applies in the new country of residence. The official procedure of the Sicherheitsfonds BVG and supporting documentation are required to assess this.
What is the difference between the mandatory and non-mandatory portions?
The mandatory portion is subject to the statutory minimum rules of BVG, while the non-mandatory portion is also governed by the pension fund's regulations. When moving abroad, a person who becomes subject to compulsory state pension insurance in an EU Member State generally cannot withdraw the mandatory portion in cash, but may withdraw the non-mandatory portion.
Can the second pillar be used to buy a home in Hungary?
Yes. An advance withdrawal may be used to purchase or build a residential property in Hungary, or to repay a mortgage. The property must serve as the applicant's own permanent residence, and the intended use must be documented for the pension fund; holiday homes and rental properties cannot be financed in this way.