Saving on State Pension, the little pleasure that doesn't pay

It is always tempting to increase one's net earnings. Some do this at the expense of the state. They do so to their detriment.

Four lawyers are organising their firm as a public limited company. Part of their remuneration is paid as a salary, and the other part as a dividend. The share of each person in the dividend, however, depends on their personal performance during the past financial year.

The AHV fund successfully reclassifies a large part of the dividend as a salary subject to AHV.

The judgment is in German. It is a case from Lucerne.

Court of Justice, judgment 9C_272/2024