The coordination offset plays a key role in occupational provisions. It determines the level of pension fund contributions (savings and risk contributions). We answer the most important questions to help you understand and apply the coordination offset correctly.
What is the coordination offset?
The coordination offset is a fixed amount deducted from your gross annual salary in order to calculate the insured salary or coordinated salary. It plays a key role as it determines how much you pay into the pension fund – and thus affects your overall savings. This savings capital in turn serves as the basis for calculating your annuity benefits in old age and in the event of disability or death.
How much is the coordination offset?
The coordination offset is 7/8 of the maximum AHV/AVS retirement pension. The maximum AHV/AVS pension in 2025 is CHF 30 240, which means that the coordination offset is bvg-koordinationsabzug (7/8 of the maximum AHV/AVS pension).
How is the coordination offset calculated?
The coordination offset is simple to calculate and amounts to bvg-koordinationsabzug in aktuelles-jahr (7/8 of the maximum AHV/AVS annual pension). To calculate your personal coordinated salary, deduct this amount from your annual salary. If you have regulations from your pension fund, check them, as there are regulations in which the coordination offset is lower.
Example: If you earn CHF 90 000 a year, an insured salary of CHF 63 540 remains after deduction of the coordination offset. This amount forms the basis for calculating your pension fund contributions (risk and savings contributions).
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Why is there a coordination offset?
The coordination offset ensures that salary components are not insured twice. When the pension fund was introduced, it was assumed that part of the salary was already covered by the 1st pillar (7/8 of the maximum AHV annual pension). The coordination offset is thus intended to prevent salary portions from being insured under both the first and second pillars. Risk benefits (death or disability) may otherwise lead to overinsurance.
What is the coordinated salary?
The coordinated salary is the amount remaining from your gross annual salary after deduction of the coordination offset. This salary serves as the basis for calculating the amount of your savings and risk contributions and the associated annuity benefits in the event of disability, death and old age.
Here is one example: Ms Weber earns CHF 80 000 per year. After deduction of the coordination offset of CHF 26 460, a coordinated salary of CHF 53 540 remains. The pension fund contributions and the pensions she will receive later in the event of disability, death or old age are calculated on the basis of this coordinated salary and her accumulated retirement savings, among other things.
What are the minimum and maximum coordinated salary figures?
The minimum coordinated BVG/LPP salary in 2025 is CHF 3780 and the maximum coordinated salary is CHF 64 260 (for the mandatory portion).
Employees on a low income therefore receive a very low coordinated salary after deduction of the coordination offset. This is often the case for part-time employees. For some employers, the pension fund regulations are structured in such a way that the coordination offset is adjusted or eliminated entirely for the part-time level. This increases the insured salary and enables part-time employees to save more for their old age and provide better protection against the risks of disability and death. These provisions are set out in the regulations.
Can employers reduce the coordination offset?
There are many employers whose pension fund regulations stipulate that the coordination offset corresponds to the part-time level, or that it is only half of the current statutory coordination offset for all employees. This is stated in the regulations of the pension fund to which the employer is affiliated.
If someone works 60%, the coordination offset could be reduced to 60% of the regular amount. The coordinated salary thus rises, which in turn leads to higher pension fund contributions and allows the person to benefit from better protection in the 2nd pillar.
Does the coordination offset also apply to part-time employees?
Yes, by law, the entire coordination offset is applied for full-time and part-time employees. However, the regulations of the pension fund to which they belong play an important role here. See previous question.
Do you have any questions about the coordination offset?
Our experts will be happy to advise you.
