The mandatory LPP covers the portion of annual salary between CHF 26,640 and CHF 90,720 (2026 amounts), with contribution rates and a conversion rate (6.8%) set by law. The non-mandatory portion of the LPP covers any contributions the employer voluntarily makes above this legal minimum, with contribution rates of up to 35% of the insured salary and often a free choice of investment strategy. It is this portion that offers the greatest potential for tax optimization.
What is the difference between mandatory LPP and non-mandatory LPP?
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About the Author: Attorney Cedric PANCHAUD
Cédric Panchaud is an attorney, holds a doctorate in law, is a licensed notary, and is a certified tax expert. He heads PANCHAUD Tax & Legal SA, an independent firm in Geneva specializing in taxation of individuals and corporations, real estate taxation, occupational pension plans, and corporate restructuring. He regularly serves as a speaker at continuing education seminars (ISIS, OREF/EXPERTsuisse).