BVG Salary Type

You may choose in the Wage subject to BVG option field whether the BVG annual wage should be calculated based on the fictitious wage amount (the Fictitious BVG Wage filed) or based on the actual amount, e.g., reported BVG wage amount (wage types subject to BVG).

As a rule, the BVG annual wage amount is defined at the beginning of the year and cannot be changed during the year, unless the employee gets a pay rise (depending on the insurer's BVG contract). These companies set the value in the Wage subject to BVG field focusing on fictitious value. Thus, the value will be always calculated in the Fictive Salary BVG.

If the BVG annual wage amount should be recalculated monthly together with the wage types subject to BVG, please set the effective value here. This procedure is often applied to employees with an irregular, monthly income (hourly rate) or to the L-GAV.