What payroll deductions have to be made?

In Switzerland, monthly salary deductions are used to finance social insurance. The contribution provides information about the type and amount of deductions.

Salary Deductions in Switzerland

For salary deductions, it is necessary to distinguish whether they are paid by the employee or the employer. Often, both parties bear the costs equally, but there are also differences.

• AHV (Old Age and Survivors' Insurance): Employer and employee each pay 4.2% of the gross salary
• IV (Disability Insurance): Both pay 0.7% of the salary each
• EO (Income Replacement Ordinance): Each 0.25%
• ALV (Unemployment Insurance): Each 1.1%
• ALV (Solidarity contribution for the annual salary between CHF 126,000 and CHF 315,000): Employer and employee each 0.5%
• BU (Occupational Accident Insurance): To be financed by the employer
• NBU (Non-Occupational Accident Insurance): Amount depends on the insurance and employer
• PK (Pension Fund): Depends on salary, performance, age, and employer

Thus, the total contributions for the AHV amount to 8.4%, for IV 1.4%, for EO a contribution of 0.5%, and for ALV a contribution of 2.2%. The total salary contributions for social insurance thus amount to 12.5%. These figures apply to employees. Self-employed individuals have a different regulation. For them, the contribution rate is 9.7%, if their salary is above CHF 56,200. If the salary is less than CHF 56,200, a lower contribution rate is paid. Self-employed individuals must pay all contributions for social insurance themselves.