Social security contributions Switzerland: how high are salary deductions in Switzerland?
Gross salaries in Switzerland are higher than net salaries. But how much is left at the end? We provide an overview of social security contributions in Switzerland.
15.09.2023
iStock/Stadtratte
1. Calculating salary deductions in Switzerland
If you receive a salary from your employer on a monthly basis, social security contributions, pension insurance and withholding tax will be deducted.
Salary deductions in Switzerland
Important: employers and employees each pay half of the cost of social security contributions. This is automatically deducted from your gross salary. Here we show the portion that you must pay as an employee.
| OASI/DI/EO (old age and survivor’s insurance/disability insurance/loss of earnings compensation) | 5.3% (4.35% OASI; 0.7% DI; 0.25% EO) |
|---|---|
| Unemployment insurance (UI) | 1.1% (up to CHF 148,200/year; any amount above that 0.5%) |
| Non-occupational accidents (NBU/ANP) | Varies depending on income and employer |
| Daily sickness benefits insurance | Provided by the employer on voluntary basis, between 0.5% and 4% |
| BVG (occupational pension fund)* | 7% to 18% of income, based on age |
| Withholding tax | Based on canton of residence, religion and marital status. To assess your personal situation more accurately, use our withholding tax calculator. |
All employees subject to OASI contributions are insured against the risks of disability and death from 1 January following their 17th birthday. They have additional old-age benefits from 1 January after their 24th birthday.
Tip
If you stay in Switzerland for a long time, you’ll receive a permanent residence permit. In this case, you will no longer need to pay withholding tax, but will instead be taxed on a regular basis. Taxes vary from canton to canton .
2. Occupational pensions: deducted directly from your salary
| Age | Percentage of insured salary (BVG contribution) |
|---|---|
| 25–34 | 7.0% |
| 35–44 | 10.0% |
| 45–54 | 15.0% |
| 55–64 | 18.0% |
The minimum salary you need to earn in order to be obliged to pay BVG contributions (“BVG entry threshold”) is 22,050 francs (as of 2023). Insurance is mandatory for annual salaries between 25,725 francs and 88,200 francs. In addition, people also talk about the “non-mandatory component” of insurance.
3. Social security contributions covered by employers
Do you want to be self-employed as a non-Swiss national and, for example, hire employees? If so, you will have to pay social security contributions. Unemployment insurance and OASI (AHV/AVS), DI (IV/AI) and EO contributions usually account for over 6% of the salary you pay.
For a net salary of 5,000 francs per month, this equates to 300 francs, which you have to pay for social security per person employed each month. You should take these amounts into account when founding or growing a company in Switzerland.
You can find a detailed overview of the current cost of social security contributions on the website of the BSV, the Federal Office of Social Insurance (link not available in English). Good to know: unlike in some other countries, all employees in Switzerland are subject to social security contributions, regardless of salary level and/or annual days of employment.
This article was first published on 19.10.2012