Swiss government opens consultation on IV reform with higher payroll contributions

Consultation opens on the IV reform

On Wednesday, 4 November 2026, the Federal Council opened the consultation on its reform of the Invalidenversicherung (IV), Switzerland's disability insurance. The package has two aims: to help people, particularly young adults, move into working life, and to put the scheme's finances back on a sustainable footing. It combines savings with higher contributions. Interested parties can respond until 4 February 2027.

Integration benefit for young adults

The central new measure is an integration benefit for people under 25 with severe mental illnesses. It combines a monthly integration allowance of around 1,000 francs with regular individual counselling from the IV office, and the person's immediate environment is also involved. The Federal Council estimates that about 1,000 people could receive the benefit, roughly a third of new pensions in that age group. The aim is to accompany young adults over a longer period so they can move step by step into working life instead of onto a pension. According to the government, new IV pensions have risen in all age groups over the past years, especially among young people, and mental illness is the main driver among young adults.

Finances and savings

The IV is under financial pressure. It recorded a loss of over 200 million francs in 2025, and the deficit could rise to over 600 million francs by 2030. Without countermeasures, the fund would be used up in 2031. The government wants to cut spending: a full pension would require a degree of disability of 80% instead of 70%, and the daily allowance for people without maintenance obligations would be reduced. Together these changes are estimated to lower spending by about 150 million francs by 2030.

Higher contributions and a surcharge for high earners

The reform raises payroll contributions permanently by 0.2 percentage points from 2030, split between employers and employees. In 2030 the increase would bring in about 980 million francs in additional revenue. A time-limited measure applies to high earners: a surcharge of 0.6 percentage points on income above 181,440 francs, due from 2030 to 2039. The government also wants the casino levy to flow to the IV as well as the AHV. A commentary in the Neue Zürcher Zeitung criticised the plan as unfair to younger workers, who already carry growing AHV and health costs, and called the surcharge a form of social populism.

Additional revenue from higher contributions980

Spending reduction by 2030150

Additional revenue from higher contributions

980 CHF million

Spending reduction by 2030

150 CHF million

Data from the article text

Other measures and key dates

The reform would anchor case management in law as a task of the IV offices, covering the whole process from integration measures to the pension review. Regional medical services would be able to carry out more examinations themselves. Access to education and training would improve for all age groups. The government also wants to remove wording such as "invalid" from the IV's language. The timeline below sets out the key dates.