AHV/IV/EO contribution rates - Changes as of 01.01.2016

From January 1, 2016, the contribution rate to the Income Compensation Ordinance (EO) decreases from 0.5% to 0.45%. Employees and employers will henceforth pay AVS/AI/EO contribution rates of 5.125% each. For self-employed individuals, this rate amounts to 9.65%.

Income Compensation Ordinance and Loss of Earnings Allowances

Individuals who serve in the Swiss Army, civil protection, or civil service in a paid capacity are financially compensated by the EO for their loss of earnings. Working individuals receive a basic compensation of 80% of their average pre-service income, but not more than CHF 245.- per day.

Contribution Rates for Employers and Employees

From January 1, the contribution rate to the EO decreases from 0.5% to 0.45% of the gross salary. Thus, employers and employees will henceforth each pay 0.225% to the EO. The percentage rates for AVS and AI remain at 8.4% and 1.4%, respectively. The new AVS/AI/EO contribution rate consequently amounts to a total of 10.25% of the gross salary.

Contribution Rate for Self-Employed

Self-employed individuals pay 7.8% of their earned income for AVS. The contribution rates for AI and EO are the same as for those who are employed by others. Therefore, self-employed individuals now pay a new AVS/AI/EO contribution rate of 9.65%. If the annual earned income is less than CHF 56,400, a reduced contribution rate applies.