TAXATION · 4 min read

How to save CHF 3'420 in tax in 2025 with pillar 3a

Published 10 February 2026 · Updated 20 July 2026

Every franc you pay into your pillar 3a is deducted from your taxable income. It is the only Swiss tax deduction that is voluntary, generously capped and open to every employee. And yet a large share of working people never pay in the maximum — often simply because nobody ever showed them the maths.

The 2025 caps

• Employee with a pension fund (LPP): maximum CHF 7'258 per year (official 2025 figure, published by the Federal Tax Administration).
• Self-employed without LPP: 20% of net income, up to CHF 36'288 per year.
• The cap is individual: in a two-income couple, each partner can pay in their own maximum.

How much you really save

The saving depends on your marginal tax rate — the rate applied to the last franc you earn, which climbs quickly with income. The orders of magnitude below are illustrative examples for a French-speaking canton; your exact figure depends on your commune, marital status and other deductions.

That is where the headline figure comes from: a two-income couple paying in twice the maximum recovers about CHF 3'420 a year in this example. Over ten years, that is more than CHF 34'000 in tax not paid — before even counting the return on the invested capital.

The 4 costly mistakes

• Confusing a bank 3a with a mixed-insurance 3a: the insurance policy bundles savings with death cover, with high fees and a low surrender value in the early years. Keep the two needs separate.
• Paying in one lump sum at the end of December: some do it in a rush and miss their bank's processing deadline. A monthly standing order settles the question.
• Piling everything into a single 3a account: at retirement, an account's capital is withdrawn in one go and taxed as a lump sum. Several accounts let you stagger withdrawals and smooth the capital tax.
• Letting the 3a sleep in a savings account at 0.5%: over a horizon of 15 years or more, a 3a invested in securities (low-fee funds or ETFs) completely changes the final result.

Do it in 20 minutes

• Check your LPP certificate: if you contribute to a pension fund, your 2025 cap is CHF 7'258.
• Open a bank 3a (or a low-fee online 3a foundation) — not a mixed insurance policy, unless you genuinely need the cover.
• Set up a monthly standing order of CHF 605 (= 7'258 ÷ 12) — adjust to your budget.
• Report the payment in your tax return (certificate sent by your bank in January).