Maximum contributions to tied pension provision for self-employed persons

How Much Are Self-Employed Persons Allowed to Pay into Tied Pension Provision If They Set Up Their Own Business during the Course of a Year?

Many self-employed persons want to know how much they are allowed to pay into their private pension provision during the year in which they go into business for themselves. It is generally possible to combine two contribution options.

The amounts that can be paid into tied pension provision – and the corresponding tax deductions – depend on whether you are a member of a company pension fund. If you are, a maximum contribution of CHF 7,056 is allowed. This is also possible for self-employed persons with their own AG or GmbH. In this case, you are considered an employee of your own company, which also means that membership in a pension fund is mandatory. Someone who is not a member of a company pension fund can make Pillar 3a contributions up to a maximum of 20% of their net annual income in 2023. These payments are also subject to a cap of CHF 35,280 for 2023.

Contributions Can Only Be Combined in the First Year

During the year in which you start your own business, it is possible to combine both contribution options and make a payment of CHF 7,056 into Pillar 3a for the time you were employed. For the remainder of the year, you can make contributions of an additional 20% of your net income from self-employment. When doing so, you need to make sure that the sum of the two contribution amounts does not exceed the maximum permissible amount of CHF 35,280.