New laws and regulations in 2024: What rights and obligations will change for you in the new year?

Various legal changes came into force in Switzerland on January 1, 2024. This article presents a selection.

 

1. Value added tax (VAT)

In order to secure the financing of the AHV, the federal government is increasing VAT rates. The new standard rate is now 8.1 per cent compared to the previous 7.7 per cent. The tax rates for accommodation (special rate) and the reduced rate (e.g. for food) will each increase by 0.1 per cent to 3.8 and 2.6 per cent respectively. The additional revenue will flow in full into the equalisation fund for old-age and survivors' insurance (AHV).

 

2. Federal tax

Anyone who pays direct federal tax in advance will now receive a refund interest rate of 1.25 per cent. Anyone who misses the payment deadline must now pay 4.75 per cent interest on arrears.

In the case of direct federal tax, cold progression will be offset in the new year by increasing the deductions for some items in the tax return. Examples: The child and support deduction will increase by CHF 100 to CHF 6'700. You can now deduct up to CHF 12'900 for education and training costs in your tax return - that is CHF 200 more than in 2023.

 

3. Criminal procedure law: more hearings, better protection for victims

More rights in summary penalty order proceedings: This is the promise of the revised Criminal Procedure Act, which came into force on January 1, 2024. If the accused is facing a custodial sentence that they must actually serve, they must now be heard. This was previously not the case.

Victims' rights have also been strengthened. Under the previous law, indigent victims were given an official defence lawyer to assert their civil claims, e.g. for compensation. This is now also possible in order to enforce a criminal claim if this is not hopeless. The victim does not have to repay the financial support received for the free-of-charge conduct of the proceedings even if money is received in the future.

Another new feature of the criminal complaint: Anyone who submits this verbally will now receive a written confirmation if they request so.

 

4. Defamation: advance on costs

From January 1, 2024, anyone who files a criminal complaint due to a possible defamation offence (slander, libel or insult) may be required to make an advance on costs. If this is not paid within the deadline, the complaint is deemed to have been withdrawn.

 

5. Road traffic - medical examination only from 75

The most recent change in road traffic is the age limit for road medical examinations in the context of applications for learner's licences and driving licences. From March 1, 2024, the mandatory examination will only be required for applicants aged 75 and over, compared to the previous age limit of 65.

 

6. Drink driving: police can order blood tests themselves

Alcohol can be reliably detected with a breath test. Blood tests are now only carried out in exceptional cases, namely in cases of suspected drug or medication use, so-called after-drinking, respiratory illnesses or after accidents. The police can now order a blood test independently and no longer have to obtain authorisation from the public prosecutor's office. This also applies to urine samples.

 

7. Post: letters will be more expensive

The Swiss Post is increasing prices for various services. The standard A Mail letter will now cost CHF 1.20, the B Mail letter CHF 1.00. The prices for A Mail Plus and registered mail will also increase by CHF 0.50 each from the new year compared to 2023.

 

8. Radio and TV tax: No TV, no Internet? You still have to pay anyway

Since 2019, anyone who does not own a device for receiving radio or television programmes has been able to apply for exemption from radio and TV tax. This is no longer possible from the new year. As before, only weekly residents, residents of retirement, nursing or student homes, companies with an annual turnover of less than CHF 500'000 and households in which a deaf-blind person lives alone or an AHV or IV pensioner who receives supplementary benefits do not have to pay the tax.

 

9. AHV revision

The AHV revision comes into force at the beginning of 2024. These are the most important changes:

- Retirement age 65:

From 2025, the retirement age for women born in 1961 or later will gradually increase by three months per year. From 2028, the retirement age for women and men will be 65.

- Transitional generation:

Women born between 1961 and 1969 who do not take their retirement pension early belong to the "transitional generation". They receive a lifelong supplement to their pension. For women with a full contribution period, this amounts to between CHF 12.50 and CHF 160 per month, depending on their income and year of birth.

- Flexible pension payment:

The AHV pension or part of it can now be drawn from any month between the ages of 63 and 70, and from the age of 62 for women of the transitional generation. In the case of an early withdrawal, the pension is reduced by 6.8 per cent per year. For a deferral, there is an increase of 5.2 per cent per year. These rates will fall from 2027. For women of the transitional generation, special reduction rates apply to early withdrawals depending on income and year of birth. These can be found on the website of the Federal Social Insurance Office.

 

10. Supplementary benefits: reductions or nothing at all

Supplementary benefits (EL) have been recalculated since 2021. Those who were already receiving supplementary benefits at that time benefited from a three-year transition period. During this period, pensions were still calculated according to the old law, provided this was better for those affected. This transition period has now expired. From January 1, 2024, the same applies to all EL recipients. This may result in reductions for some individuals. Or the benefits may even be cancelled altogether.

 

11. BVG pensions will be adjusted - inflation

AHV and IV pensions will not be increased in the new year. However, various pensions in the second pillar will be increased due to inflation. Survivors' and disability pensions in the mandatory second pillar will increase by 6 per cent and thus be adjusted in line with inflation. For the first time since 2017, the Federal Council is increasing the minimum interest rate for employees' pension fund assets. It will rise by 0.25 points to 1.25 per cent in 2024. The trade unions had demanded an increase in the minimum interest rate to 2 per cent, while the employers' association had called for a reduction to 0.75 per cent. The minimum interest rate determines the minimum percentage of interest that must be paid on the pension assets of insured persons in the mandatory scheme.

 

12. Degree of disability: deduct ten per cent from fictitious salaries

The so-called degree of disability determines how high an IV pension is. It is calculated by comparing the income a person earned before becoming disabled with the income they can still earn after becoming disabled. The difference as a percentage then gives the degree of disability.

If the degree of disability cannot be determined on the basis of a specific income, the IV uses statistical salary tables. The Federal Statistical Office has compiled these for numerous sectors and occupations. However, practice has shown that people with a disability rarely achieve these average wages. For this reason, the IV will deduct a flat rate of ten per cent from the table wages in the new year. The IV offices will not only apply the new method to new pensions, but will also have to review all pensions determined according to the table method over the next three years.

Disability insurance is also now funding a contribution to the costs of epilepsy alert dogs and autism assistance dogs. This is intended to enable those affected to lead a self-determined life. Anyone who needs orthopaedic shoes can benefit from AHV in future: From 2024, it will contribute to the costs every year instead of only every two years as before.

 

13. Debt collection by health insurance companies: minors can no longer be pursued

If parents did not pay their children's premiums, health insurance companies were previously also able to pursue minors. Every insured person - whether a minor or not - was personally liable for their premium. From 2024, this will no longer be possible. According to Parliament, the amendment to the Federal Health Insurance Act (KVG) is long overdue. Because it has been shown: Minors who are run and have to start adult life with debts often cannot get rid of them for the rest of their lives.

 

14. Domestic workers: higher minimum wage

Due to inflation, the Federal Council is adjusting the standard employment contract for domestic workers (NAV Hauswirtschaft). It is increasing the minimum wage by 2.2 per cent. An unskilled employee now earns CHF 19.95 (previously CHF 19.50). The minimum wages apply to all domestic staff who work in private households for at least five hours per week.

 

15. Civil defence: same pay as in the military

Soldiers and civil defence service members are to earn the same from 2024. There has been a small difference since the pay rates in the army were raised in November 2022. In the interests of equal treatment, the pay of civil defence service members will now also be increased slightly. For example, a recruit will now receive CHF 6 instead of CHF 4 per day. The additional costs of around CHF 1.3 billion per year will be borne by the cantons.

 

16. Consumer credit: higher interest rates possible

Anyone who needs a consumer loan, i.e. up to CHF 80,000, e.g. to refurnish their home, buy a car or register for further education, must expect higher interest rates from 2024. The maximum interest rates will rise by one percentage point and now stand at 12 per cent. It will also be more expensive for those who overdraw their account. Interest rates on overdrafts can now be as high as 14 per cent.

 

17. Further advice

If you have any questions about individual cases or require advice, please do not hesitate to contact us.