How are BVG contributions handled during unpaid vacation?

Unpaid vacation of less than one month cannot be reported to the pension fund, and must therefore be taken care of directly with the employee. If the vacation lasts longer than one month, employers have two options.

Option 1: Continuation of the insurance without changes

If the insurance continues unchanged, the insured benefits (retirement, disability, death) will continue unchanged. In this case, the employee bears the full contribution costs.

Option 2: Continuation of risk insurance

In the second option, disability and death benefits continue to be insured, but the savings process is interrupted for the duration of the unpaid vacation. Whether the risk contributions continue to be paid jointly or solely by the insured is up to the employer.

Please note that notification to the pension fund is only required if saving for retirement is interrupted during unpaid vacation. If contributions continue unchanged, you do not have to report unpaid vacation.