OASI: old-age and survivors' insurance, contributions and pensions

Q: What is the OASI contribution rate?

The OASI/DI/IPR contribution rate is 10.6% of gross salary (for employees), shared equally between employer and employee: 5.3% borne by the employer and 5.3% deducted from the employee's salary. Added to this is the unemployment insurance (UI) contribution of 2.2% up to a certain salary threshold, split in the same way. These rates may vary marginally depending on the compensation fund.

Q: What is the OASI number (NAS)?

The NAS (Numéro AVS de l'assurance sociale — Swiss social insurance number) is a 13-digit personal identification number (format 756.XXXX.XXXX.XX). It serves as the unique identifier for all social insurances (OASI, DI, LPP, LAA, IPR) and tax authorities. Every employer is required to collect it for each employee upon hiring.

Q: Who manages OASI contributions?

OASI contributions are collected by cantonal or occupational compensation funds. The employer registers with a fund and pays the contributions monthly (employer share plus the employee share withheld from salary). The fund redistributes them to the central OASI fund managed by the Central Compensation Office in Geneva.

Definition

OASI (Old-Age and Survivors' Insurance, in German AHV, in French AVS, in Italian AVS) is the cornerstone of the Swiss pension system. Established by federal law and entering into force on 1 January 1948, it forms the first pillar of Switzerland's three-pillar pension system. Its purpose is to cover basic living needs in retirement and in the event of the death of a breadwinner.

How it works

OASI is based on the pay-as-you-go principle: contributions paid by today's working population directly fund the pensions of current retirees (intergenerational solidarity). The amount of the pension depends on the number of contribution years and the average income earned over the course of one's working life.

The OASI system actually encompasses three insurances administered together:

OASI — old-age and survivors' pensions
DI (Disability Insurance) — partial funding
IPR (Income Replacement/Loss of Earnings Allowances) — military service, maternity, paternity, adoption, Covid-19, etc.

Contributions and obligations

For employees, the OASI/DI/IPR contribution is deducted from gross salary. The employer withholds the employee's share, adds their own employer share, and remits the total to the compensation fund. The exact rates are set by the Federal Council and may be subject to minor revisions.

Each employee is identified by their OASI number (NAS, 13 digits, format 756.XXXX.XXXX.XX). Collecting the OASI number is mandatory upon hiring. It serves as the unified identifier for all social insurances and tax authorities.

The employer must:

Register with a compensation fund (cantonal or occupational).
Report each employee with their OASI number and insurable salary.
Pay contributions monthly or quarterly.
Submit an annual salary statement to the fund.

Swiss context

The three-pillar system is a Swiss specificity enshrined in the Federal Constitution since 1972:

1st pillar (OASI/DI/IPR): coverage of basic living needs, compulsory and universal.
2nd pillar (LPP/BVG — occupational pension): compulsory for employees above a certain salary threshold.
3rd pillar (3a/3b): voluntary individual savings, benefiting from tax advantages.

The OASI 21 reform (approved by popular vote in 2022) harmonised the reference retirement age at 65 for both men and women and increased VAT rates from 2024 to fund the OASI fund.

How Neoffice handles it

Neoffice integrates the calculation of OASI/DI/IPR contributions into the payroll module. Deductions are calculated automatically on each payslip. The annual salary statement is generated in accordance with the Swissdec ELM standard for direct submission to the compensation fund. Each employee's OASI number is collected and stored securely in the HR file.