Swiss 13th pension payment stalled as lawmakers clash over funding costs

Swiss lawmakers remain divided over funding for the 13th AHV pension payment, delaying a final decision until next year. The Council of States proposed a mixed model of payroll taxes and VAT increases, but the National Council rejected it. Meanwhile, both chambers agree that VAT should partly cover the costs, raising concerns about the impact on low-income households.

The 13th pension, set to begin in December 2026, has sparked debates over financing. While the Council of States favoured splitting costs between payroll contributions and higher VAT, the National Council blocked the plan. Instead, they insist on a different approach, leaving the issue unresolved for now.

Adding to financial pressures, the AHV budget faces further strain from other reforms. The abolition of lifelong widows' pensions and discussions around fairer spousal benefits are complicating negotiations. However, no Swiss canton has yet backed a formal initiative on the matter, despite ongoing parliamentary talks.

Beyond pensions, new data reveals that 98% of Swiss parliamentarians have experienced threats, hate speech, or violence. Members of the SVP and the Greens report the highest levels of abuse. The findings highlight growing risks for elected officials across the political spectrum.

In separate developments, Swiss doctors and hospitals received a record CHF 262 million from pharmaceutical firms in 2024. Since direct-to-consumer advertising is banned, companies focus on influencing prescribers and professional groups. The payments underscore the industry's reliance on healthcare professionals to promote products.

Elsewhere, workers at the Frauenfeld TG parcel hub are raising health concerns. Between 300,000 and 400,000 packages pass through daily, with employees reporting skin rashes after handling shipments from Chinese retailers like Temu, Shein, and Wish. The issue has prompted calls for further investigation into workplace safety measures.

The 13th pension payment remains in limbo as lawmakers struggle to agree on funding. VAT increases, if approved, will place a heavier burden on lower earners. With the first payout due in late 2026, pressure is mounting to resolve the dispute.

Separately, the rise in threats against politicians and record pharmaceutical payments to doctors reflect broader societal and economic challenges. Meanwhile, health complaints among parcel workers signal potential risks in handling certain imports.