Swiss state pensions to rise 2.5% to help offset inflation

SF Urban Properties AG

12/10/2022 12:00

ZURICH, Oct 12 (Reuters) - The Swiss state pension will
rise by 2.5% next year, the government said on Wednesday, to
help offset the highest  inflation the country has seen in
nearly 30 years.
    The minimum payout of the state scheme will rise to 1,225
francs ($1,230) per month from 1,195 francs, while the maximum
payout will increase to 2,450 from 2,390 francs. 
    Minimum contributions for self-employed people will rise to
help pay for the increase.
    The government reviews pensions every two years, with the
intention of adjusting pensions and disability benefits in line
with price and wage levels.
    Switzerland is experiencing its highest inflation since
1993, with the government expecting prices to rise 3% this year
and 2.3% next year, while average wages will increase 2%.
    "This results in a mixed index of 2.5% and leads to a
pension increase that almost completely offsets inflation," the
government said.
    Finance Minister Ueli Maurer, who is stepping down at the
end of the year, has previously ruled out additional government
support for consumers wrestling with higher living costs such as
more expensive energy.
    "Petrol prices are affordable in wealthy Switzerland,"
Maurer said in an interview earlier this year.
    In addition to state pensions, the Swiss pension system is
based on occupational schemes and also voluntary contributions
to private pensions.
    The increase in pensions will increase Switzerland's pension
bill by 1.2 billion francs per year, the government said, with
the central government picking up around a fifth of the extra
cost.
 (Reporting by John Revill; Editing by Nick Macfie)
 ((John.Revill@thomsonreuters.com; +41 41 528 36 37; Reuters
Messaging: john.revill.thomsonreuters.com@reuters.net))