Switzerland to pay a 13th pension — cost, funding and whether North Macedonia should follow
After a March 2024 referendum, Switzerland plans a first 13th pension payment on 1 December 2026; funding and a VAT vote remain disputed.
Swiss voters approved a constitutional change in a March 2024 referendum that paves the way for a one-off 13th pension for retirees. The first payment under the old-age and survivors' insurance system is scheduled for 1 December 2026, but how to pay for the measure remains fiercely contested in Switzerland.
Costs, projections and a proposed VAT hike
The Federal Social Insurance Office (FSIO) estimates the initial annual bill for the extra pension at about 4 billion Swiss francs (around 4.3 billion euros), with a long-term projection rising to about 5 billion francs (roughly 5.4 billion euros). To cover the expense, the Swiss parliament has proposed raising the value-added tax rate from 8.1 to 8.5 percent, a change planned to take effect in 2028.
That VAT increase will be put to a nationwide vote on 29 November 2026. Opinion polls test public opinion as tightly divided: 49 percent oppose the VAT rise, 46 percent support it and 5 percent remain undecided.
Civic initiatives have already appeared. Fondation Chance 13 is urging wealthier retirees to forgo their 13th payment and redirect funds to charitable causes such as combatting old-age poverty and supporting education. The foundation estimates that if a quarter of Swiss pensioners donated the bonus, about 1 billion francs could be raised for social projects.
Beyond Swiss borders the decision has prompted a common question: should North Macedonia consider a similar year-end bonus for pensioners? The idea — whether framed as a Christmas supplement, an annual bonus or a targeted relief payment — is attractive for its immediate social impact, but it also raises practical questions about affordability and design.
Any discussion about importing the measure to North Macedonia must weigh financing options, administrative complexity and targetting. Possible approaches include a one-off payment funded from the general budget, a temporary consumption tax increase, a means-tested bonus for the lowest pensions, or encouraging voluntary donations. Each path carries trade-offs between political feasibility, long-term fiscal sustainability and the size of the benefit for retirees.
Photo: Ilustracija (AI)
