BVG coordination deduction explained: why part-time pay is under-insured
Updated · 2 sources
Direct answer
The coordination deduction (Koordinationsabzug, CHF 26,460 in 2026) is the part of your salary the 2nd pillar does not insure, because the 1st pillar (AHV) already covers it. Your pension fund insures only the salary between CHF 26,460 and CHF 90,720, the 'coordinated salary'. The catch: the full deduction also applies to part-time salaries unless your plan scales it, which is why an 80% or 60% Pensum can be insured on a fraction of its pay.
Key facts
- Coordinated salary = min(salary, CHF 90,720) − CHF 26,460, with a minimum insured salary of CHF 3,780
- BVG starts at CHF 22,680 annual salary with one employer (entry threshold, 2026)
- Worked catch: 40% of a CHF 80,000 full-time salary is CHF 32,000, but only CHF 5,540 is insured if the deduction is not scaled
- Many modern plans scale the deduction to the Pensum or insure from the first franc; your pension certificate shows which
Why the deduction exists
The two-pillar design splits your income: AHV aims to cover basic needs from the first franc, so the occupational pension only tops up the slice above roughly an AHV pension's worth of income. That slice starts at CHF 26,460. On a CHF 90,000 salary, CHF 63,540 is coordinated salary, and the age-bracket credits (7–18% total, employer paying at least half) apply to that amount, not to CHF 90,000.
Your annual pension certificate (Vorsorgeausweis) shows your insured salary. If it is much lower than your actual salary, either the coordination deduction or the CHF 90,720 ceiling is the reason, or your plan deliberately insures only the mandatory part.
The part-time penalty, in numbers
Take a role paid CHF 80,000 at 100%. At a 40% Pensum the salary is CHF 32,000. With the statutory full deduction, the insured salary is CHF 32,000 − 26,460 = CHF 5,540: pension savings and risk cover are built on 17% of the actual pay. If the plan scales the deduction to 40% (CHF 10,584), the insured salary is CHF 21,416, almost four times more.
Nothing in the law forces the unscaled version; it is the statutory minimum model. Before reducing your Pensum, or when comparing job offers at different workloads, ask one question: is the coordination deduction adjusted to the workload, and from what salary does the plan insure? The answer is worth more than most salary negotiations at part-time levels.
| Case (salary) | Deduction applied | Insured (coordinated) salary |
|---|---|---|
| 100% of CHF 80,000 | CHF 26,460 | CHF 53,540 |
| 40% → CHF 32,000, unscaled | CHF 26,460 | CHF 5,540 |
| 40% → CHF 32,000, scaled to Pensum | CHF 10,584 | CHF 21,416 |
FAQ
- What is the coordination deduction in 2026?
- CHF 26,460. It is subtracted from your salary (capped at CHF 90,720) to give the coordinated salary insured by the pension fund. The BVG entry threshold is CHF 22,680 and the minimum insured salary is CHF 3,780.
- Why is my insured salary lower than my real salary?
- Because of the coordination deduction and the CHF 90,720 statutory ceiling. Plans may insure more than the minimum, so check your pension certificate (Vorsorgeausweis) for the insured salary that actually applies to you.
- Does working part-time hurt my pension?
- Under the statutory model, disproportionately: the full CHF 26,460 deduction also applies to small part-time salaries. Many employers' plans scale the deduction to the workload percentage, which largely removes the penalty. Ask HR which model your fund uses.
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