What is BVG?
BVG is Switzerland’s mandatory occupational pension framework (second pillar) for eligible employees, complementing first-pillar social insurance.
Key Features
- Employer pension obligations for qualifying staff
- Contributions typically shared between employer and employee
- Implemented via approved pension institutions
- Works alongside AHV and other payroll obligations
Practical Payroll Steps
- Confirm employee eligibility and enrollment requirements
- Set up contribution rates and payroll deductions
- Coordinate declarations with pension institution
- Keep payroll and pension records consistent
Tax and Compliance Implications
Incorrect enrollment or contributions can lead to underfunding, correction claims, and compliance risk. Proper setup is critical for payroll integrity.