Swiss pensions set to be increased in line with inflation

The Council of States (the upper house of parliament in Switzerland), has voted to increase the funding given to Swiss pensions in order to cover rises in inflation. First and second-pillar pensions are set to be increased by the rate of inflation, which currently stands at 3,5 percent.

Swiss Council of States votes to raise pension payments in line with inflation

On Monday, by a margin of 24 votes to 17, the Council of States accepted a plan to index pension payments to the rate of inflation. The new law, which is extremely similar to the one submitted and approved by the National Council last week, is designed to help the elderly cope with the rising cost of living. 

The council also agreed that the government should always raise pension funding in line with inflation, should the rate rise above 2 percent a year. According to the Federal Statistical Office, inflation will stand at 3,5 percent by the end of 2022.

Pension funding increase sent to National Council for approval

While different versions of the law were agreed upon by both chambers, the latest draft will now be sent back to the National Council for final approval. The law must also face the criticism of the Federal Council, which has said in the past that it was unwilling to help residents with the cost of living. 

Speaking to 20 minuten, Health Minister Alain Berset made the point that pensions were already being indexed for 2023, noting that the current system “made it possible to increase pensions by 19 percent between 2000 and 2021, while total inflation only amounted to 8 percent.”

Fuel price calculator in Switzerland approved by parliament

Alongside the rise in pension payments, the Council of States also approved a plan to create an online fuel price calculator in Switzerland. The system, already in place for Austrian and German drivers, allows motorists to see where the cheapest petrol and diesel prices are in real-time.

Finally, the council voted to send two proposals back to the committee level, both of which would have increased the premium reduction on Swiss health insurance by 30 percent. State Councillor Charles Juillard told 20 mintuen that "we must ensure that this additional aid will reach the people we want to help," noting that people on low incomes already benefit from other support packages to help pay their insurance bills.