Swiss Payroll Guide - Stunden — Plan hours, track them, invoice them. Set up in under an hour.

The Complete Guide to Swiss Payroll

Understand all aspects of Swiss payroll - from AHV contributions to the 13th month salary. Everything you need to know as an employer.

AHV/IV/EO - The First Pillar

AHV/IV/EO is Switzerland's most important social insurance and forms the first pillar of the three-pillar system. Contributions are split equally between employer and employee.

Current Contribution Rates

AHV/IV/EO

10.6%

5.3% each for employer and employee

Employee share

5.3%

Deducted from salary

Note: AHV contributions are due on the entire AHV-liable salary; there is no upper limit.

ALV - Unemployment Insurance

ALV protects employees in case of unemployment. Contributions are split equally, but there is an assessment limit.

Contribution Rates 2024

Standard Contribution

Up to CHF 148'200

2.2%

Solidarity Contribution

Above CHF 148'200

1.0%

BVG - Occupational Pension (2nd Pillar)

The occupational pension is the second pillar and supplements the AHV. Contributions increase with age and are calculated on the coordinated salary.

Age-Based Contribution Rates

25-34

35-44

10%

45-54

15%

55-65

18%

Coordinated Salary: The BVG-liable salary is the annual salary minus the coordination deduction (2024: CHF 25'725). Maximum: CHF 88'200.

UVG - Accident Insurance

Accident insurance is mandatory for all employees and covers occupational and non-occupational accidents.

Occupational Accident (BU)

Accidents at work and on the way to work.

Employer pays

Non-Occupational Accident (NBU)

Accidents during leisure time (from 8h/week).

Employee pays

KTG - Daily Sickness Allowance

Daily sickness allowance insurance is voluntary but recommended for most employers. It covers wage loss due to illness.

The premium split varies depending on the insurance contract. A 50/50 split between employer and employee is common.

Withholding Tax

Withholding tax is deducted directly from the salary and transferred to the tax authorities. Rates vary by canton.

Subject to withholding tax:

Foreign employees without a C permit
Cross-border commuters with a G permit
Short-term residents with an L permit

13th Month Salary

The 13th month salary is widespread in Switzerland but not legally required. It is often regulated in collective agreements or individual employment contracts.

Important: For part-time employment or entry/exit during the year, the 13th month salary is calculated proportionally (pro rata).