OASI contribution gaps: how they form and how to close them

An OASI contribution gap only shows up at retirement, and then permanently. Every missing contribution year cuts the pension. This text shows how gaps form and what can still be repaired.

When does an OASI contribution gap form?Abschnitt verlinken

A gap forms when you pay no OASI contributions, or too low ones, in a year in which you are liable. You are liable from 1 January after your 20th birthday until the reference age.

A full pension needs 44 contribution years, the so-called scale 44. If a year is missing entirely, it counts as a hole. There is no partial half-year: a year is either covered or not.

How much does a gap cut the pension?Abschnitt verlinken

Every missing contribution year cuts the retirement pension by roughly one forty-fourth, so about 2.3 percent. Two missing years mean around 4.6 percent less, and that for the rest of your life.

With a maximum yearly pension of CHF 30,240, 2.3 percent is around CHF 700 per year. Over a 20-year payout period a single missing year adds up to about CHF 14,000.

Who is most affected?Abschnitt verlinken

Often affected are people with years abroad without Swiss contributions, with a longer break from paid work and without substitute contributions, and students from age 21 who do not work on the side and pay no contributions.

Early retirement also creates gaps: whoever stops at 62 stays liable until 65 and must pay OASI as a non-employed person during that time, otherwise up to three years are missing.

Can you close a gap after the fact?Abschnitt verlinken

Only to a limited extent. You can pay missing contributions for at most the last five years. Older gaps remain.

Two things still help. Contributions you paid between 18 and 20 cover later gaps. And if your spouse or registered partner is employed and pays at least twice the minimum contribution, you count as having met the liability for that year.

Do child care and nursing count?Abschnitt verlinken

For years in which you care for children under 16, the OASI credits you with a child-raising credit. For caring for relatives in need of nursing there is a care credit. Both raise your credited average income and therefore the later pension.

Important: these credits do not replace the contribution liability. Whoever is neither employed in a caring year nor pays contributions as a non-employed person has a contribution gap in that year despite the credit. The credit is only taken into account when the pension is calculated, and you usually have to claim it.

What applies to the self-employed?Abschnitt verlinken

As a self-employed person you pay contributions on account, which the compensation fund later settles against your final income. If you set the payments on account too low, an additional payment follows, often years later.

The full rate of 10 percent applies from an income of CHF 60,500; below that a decreasing scale applies, but at least CHF 530 per year. Report a higher income to the compensation fund early and set the difference aside, so the additional payment does not catch you out.

How to proceedAbschnitt verlinken

• Order the statement from your individual account at the compensation fund. It is free and lists every contribution year.
• Check specifically for years with residence or work abroad, education years from age 21 and longer breaks from work.
• Pay missing contributions from the last five years while that is still possible.
• During a career break or early retirement, actively register as non-employed and pay the minimum contribution.
• As a self-employed person: report income increases immediately and build a monthly reserve for OASI and the later additional payment.