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REFERENDUMS IN SWITZERLAND

Swiss voters approve boost to pension payments

Swiss voters on Sunday overwhelmingly backed a proposal to increase pension payments, a move hailed as "historic" by backers at a time when the country's ageing population faces surging living expenses.

This photograph, taken on February 29, 2024 in Lausanne, shows an electoral board reading in French:
This photograph, taken on February 29, 2024 in Lausanne, shows an electoral board reading in French: "Our pension is no longer enough" ahead of two national referendums on retirement initiatives on Sunday. (Photo by Fabrice COFFRINI / AFP)
A call by trade unions to add a 13th monthly pension payment each year secured nearly 60 percent backing, final results showed.
 
But a separate vote to raise Switzerland’s retirement age to 66 from 65 was soundly rejected by three-quarters of voters.
 
The AVIVO pensioners’ association hailed the pension increase as “a historic victory”.
 
Switzerland’s Greens Party also celebrated a “significant victory… for the many retirees who will see their situations improve”.
 
While opinion polls had indicated strong popular support for the “Better living in retirement” proposal, suspense had lingered on whether it would secure the necessary majorities in most of Switzerland’s 26 cantons.
 
But in the end, the initiative won the double-majority needed to pass, with backing from 58.24 percent of voters and 16 cantons.
 
Ten cantons rejected the move, the results showed, while support soared above 70 percent in six cantons, including over 82 percent in the western Jura region.
 
 
Sunday’s vote marks the first time that Swiss voters have accepted a popular proposal to alter the country’s social security system, according to the ATS-Keystone news agency.
 
It is also the first time Swiss trade unions have succeeded in pushing through an initiative at the polls under the country’s direct democratic system.
 
Soaring costs’

The “Better living in retirement” proposal calls for a 13th monthly pension payment each year, similar to the “13th month” salary many employees receive in Switzerland and other European countries.

Monthly social security payments in Switzerland can rise to 2,450 Swiss francs ($2,780) for individuals and 3,675 francs for married couples.

READ ALSO: What is Switzerland’s 13th-month pension plan and why are they voting on it?  

The payments do not go far in a country consistently ranked among the most expensive in the world.

Rent for a typical two-bedroom apartment in Swiss cities is at least 3,000 francs, and a coffee costs upwards of five francs.

“There is a purchasing power crisis,” said Pierre-Yves Maillard, head of the Swiss Trade Union Federation (SGB) and part of the “yes” campaign.

“Retirees are seeing their living standards erode,” he told AFP last week.

“The cost of living just keeps soaring,” agreed Jakob Hauri, a retiree quoted by the campaign.

People power

Left-leaning parties supported the initiative, which was fiercely fought by right-wing and centrist parties, as well as the Swiss government and parliament.

The government warned the proposed hike would cost more than four billion Swiss francs a year, which would require tax increases and could threaten the financial stability of the social security system.

It also said there would be limited social benefit from the proposed change, which would hand additional payments to all pensioners, regardless of their financial situation.

“If the initiative passes, a lot of retirees will receive a 13th social security payment even though they don’t really need it,” the government warned.

But the Swiss Trade Union Federation (SGB) said Sunday’s vote results “clearly show that the government, a majority of the parliament and employers have for too long ignored the pension problem”.

Its chief, Pierre-Yves Maillard, told public broadcaster RTS on Sunday that the win was “a wonderful message to all those who have worked hard all of their lives”.

It is proof, he said, that “it is the people who have the power in Switzerland”.

Retirement age unchanged

A second issue on the ballot Sunday seeking to raise the retirement age was soundly rejected.

A full 74.72 percent of voters turned down the proposal by the youth branch of the right-wing Liberal Party to gradually raise the retirement age from 65 to 66 over the next decade, a moved aimed at ensuring full financing of the pension system.

A majority of voters in every Swiss canton rejected the proposal, which came less than two years after voters narrowly opted to raise the retirement age for women from 64 to 65, to match the retirement age for men.

Voter participation is generally low in Switzerland’s popular votes, which are held every few months, and rarely inches above 50 percent.

But Sunday’s issues sparked heated debate and participation reached more than 58 percent.

 

Member comments

  1. Overall the Swiss economy will benefit from pensioners eventual increase in spending and some reduction of other social support measures.

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POLITICS

Swiss earmark 10 million francs for UNRWA in Gaza

Switzerland is proposing to give $11 million to the UN agency for Palestinian refugees, specifically for tackling the humanitarian crisis in Gaza triggered by the war between Israel and Hamas.

Swiss earmark 10 million francs for UNRWA in Gaza

The government’s proposal, announced Wednesday after weeks of procrastination, represents half of the amount which was initially set to be paid to the UNRWA (The United Nations Relief and Works Agency) in 2024.

“Switzerland’s 10 million Swiss francs contribution to UNRWA will be restricted to Gaza and will cover the most pressing basic needs, such as food, water, shelter, basic healthcare and logistics,” a government statement said.

Switzerland “is fully aware of the critical nature of this situation and recognises the urgent need for action”.

UNRWA, which coordinates nearly all aid to Gaza, has been in crisis since January when Israel accused about a dozen of its 13,000 Gaza employees of being involved in the October 7th Hamas attack on Israel.

This led many donor nations, including the United States and Switzerland, to abruptly suspend funding to the agency, threatening its efforts to deliver desperately-needed aid in Gaza, where the UN has warned of an impending famine.

An independent review group of UNRWA, led by French former foreign minister Catherine Colonna, found some “neutrality-related issues” but said Israel had yet to provide evidence for its chief allegations.

In making its decision, the Swiss government said it “drew on the analysis of the Colonna report and coordination with other donors”.

The government’s decision must still be submitted to parliament’s foreign affairs committees for consultation.

On April 30th, the Swiss head of UNRWA, Philippe Lazzarini, said that of the $450 million in funding that had been frozen by donors, $267 million was still suspended, the bulk of it by Washington.

Gaza’s bloodiest-ever war began following Hamas’s unprecedented October 7th attack on Israel that resulted in the deaths of more than 1,170 people, mostly civilians, according to an AFP tally of Israeli official figures.

Vowing to destroy Hamas, Israel has conducted a retaliatory offensive that has killed more than 34,800 people in Gaza, mostly women and children, according to the Hamas-run territory’s health ministry.

Switzerland “reiterates its call for a humanitarian ceasefire, unhindered access for emergency aid to Gaza, compliance with international humanitarian law, and the immediate and unconditional release of all hostages,” the government said.

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