Switzerland may vote on financing the 13th AHV pension payment

On November 29, voters will decide on a VAT increase to finance the 13th AHV pension payment. The proposal would affect the individual VAT rates differently.

Author: Editorial teamOctober 9, 20262 min read

Editorial content

Egy férfi borítékot helyez egy szavazóurnába, háttérben választók és svájci keresztes jelzések láthatók. — A képen egy férfi borítékot helyez egy fa szavazóurnába egy szavazóhelyiségben. Az előtérben papírkötegek, a háttérben elmosódott választók és piros-fehér jelzések láthatók.

In Switzerland, a nationwide referendum will be held on 29 November 2026 on a VAT increase to finance the 13th AHV pension payment. According to information from the Federal Social Insurance Office (BSV), voters will have to decide on a tax increase linked to pension financing. (BSV)What is known about the 13th AHV pension payment?

AHV is Switzerland’s state pension insurance scheme. The Swiss Parliament

decided in June 2026, according to official information from BSV, how the 13th pension payment would be financed. This parliamentary decision provides the background to the financing proposal now being put to voters. (BSV)The solution adopted by Parliament and approval of the VAT increase must be treated separately: the former decision has already been made, while the latter will be put to a referendum.

How is the planned VAT increase connected to this?

The proposal would affect the individual VAT rates differently. The

special VAT rate for the hotel industry would increase from 3.8% to 4.0% . This is a nationwide tax rate, not a measure that varies by canton. (BSV)The

reduced VAT rate would remain at 2.6% . According to a report by Watson, the additional revenue generated by the VAT increase would flow entirely into AHV. The proposal would therefore provide supplementary revenue for the state pension insurance scheme, while leaving the reduced tax rate unchanged. (Watson)

What decision is still pending?

Voter approval is the next step. The vote concerns a VAT increase to finance the measure, so the proposed tax rates cannot yet be treated as changes that are already in force.

Accordingly, the wording “would increase” and “would remain” describes the proposal submitted to voters, not a new tax rule that already applies.

Sources

In Brief

On November 29, 2026, Switzerland will hold a nationwide referendum on a VAT increase to finance the 13th AHV pension payment. Under the proposal, the special VAT rate for the hotel industry would rise from 3.8% to 4.0%, while the reduced rate would remain at 2.6%; all additional revenue would flow into the AHV.

Key Takeaways

The referendum will be held in Switzerland on November 29, 2026.
The vote concerns a VAT increase to finance the 13th AHV pension payment.
Under the proposal, the special VAT rate for the hotel industry would rise from 3.8% to 4.0%.
The reduced VAT rate would remain at 2.6%, while all additional revenue from the VAT increase would flow into the AHV.

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