Self-Employed: Definition
All gainfully employed people are required to pay contributions. But for the self-employed, the situation is a little different.
Generally, you are considered self-employed if you :
- Work for yourself
- Use your own name for your business activity (invoices are in your name, for example)
- Are responsible for the risks associated with your business (particularly economic risks)
- Are free to plan your activity as you see fit (your workload and working hours, for example)
However, this definition is not absolute and depends on the compensation fund . You'll need to contact them to confirm your status.
In general, self-employed status does not apply to you if your professional activity is carried out within the framework of a company, i.e. if you are an employee.
Period of AHV contributions
Whether you are self-employed or employed, it is compulsory to contribute to AHV, IC and DI. The difference with salaried workers is that, as a self-employed worker, you have no protection against :
- Unemployment
- Accidents
What's more, unlike an employee, affiliation to the LPP (occupational benefits) and the creation of a 2nd pillar are not compulsory for self-employed workers. It's up to you to prepare for a more comfortable retirement.
For salaried employees, on the other hand, BVG contributions are compulsory; both employee and employer contribute to the scheme.
What you need to know
If you work as a self-employed person alongside your regular salaried job, you will not normally need to pay AVS contributions.
Start of contributions
Your obligation to pay AHV contributions as a self-employed person begins on 1st January following your 17 years old. In other words, you don't start contributing as soon as you reach that age. In fact, if you turn 17 on April 10, 2025, you won't start contributing until April 1.st January 2026.
End of contributions
Your AHV contributions end when you are no longer working and/or are retired. retirement age : 65 years old for both men and women (except for women born between 1960 and 1963).
If, however, you stop working before you reach retirement age, you will have to pay other contributions known as "social security contributions". contributions from persons not in gainful employment ". These also end when you turn 65.
Provisional and definitive contributions
Prepayments of contributions
The self-employed generally have to pay prepayments of contributions based on estimated income for one year.
Advance contributions are contributions whose amount is determined temporarily by a compensation fund. In other words, the definitive contributions are set after the income declaration. real.
If your determining income undergoes a significant change, you are in obligation inform your compensation fund.
Interest on arrears
The compensation fund generally provides that if your salary changes by more than 25% compared with the initial income, you are then obliged to inform the latter.
If you fail to meet this obligation, and if the deposits paid do not cover the total amount of the contributions due, you will be required to pay the full amount of the contributions due. difference.
The latter is often increased bydefault interest if you don't pay on time.
Calculating contributions
The calculation of the AHV contribution for the self-employed depends on a number of factors, which we will describe in greater detail below.
AVS/AI/APG contribution rates
For the self-employed, the contribution rate is linked to the worker's annual salary. Starting at CHF 58,800 per year, the total contribution rate amounts to 10 %: AVS: 8.1 % + AI: 1.4 % + APG: 0.5 %).
If, on the other hand, your salary is less than the above amount, the contribution rate for AVS, AI and APG will be calculated according to a sliding scale (as of January 1, 2021). It can range from 5,371 % to 10 %.
For an annual salary of between CHF 31,000 and CHF 33,800, the contribution rate will be set at 6.235%. Your compensation fund also deducts a processing fee, the amount of which may vary, but is capped at 5 %.
- Type of contribution
- Percentage
- AHV card
- AI
- APG
Sample calculation of contributions for self-employed workers
Thanks to official government toolsYou can now calculate the AHV contribution rate you will be subject to.
If you work as a self-employed person in the canton of Geneva and earn an annual income of CHF 77,000, the AHV contribution rate will be 10 %, since this amount is greater than CHF 58,800 per year.
If, on the other hand, you earn CHF 51,000 a year, your AHV contribution rate will be lower, at 8.951 %. In all cases, you'll also have to take into account administrative costs, which amount to a maximum of 5%.
Role of founding associations
They are often associations who manage the compensation funds. Among other things, they collect contributions and manage policyholder accounts.
As a priority, they ensure that the amounts of advance payments and contributions The final sales are in line with the income declared by a self-employed worker.
Frequently Asked Questions
How much are social security contributions for self-employed workers?
For self-employed workers, the amount of social security contributions depends on their salary. If you earn more than CHF 58,800 a year, the contribution rate is 10 %, whereas if you earn less than that, the rate will be lower.
How are social security contributions calculated for the self-employed?
They are calculated on the basis of the employee's salary. They generally vary by canton.
Who is not subject to AHV?
If your salary is less than CHF 2,300, you are generally not required to contribute.
How can I find out the amount of my AHV contribution?
You can use the official government tools to determine the amount you will pay in contributions.
Who is considered self-employed?
A self-employed person is generally someone who works on his or her own account and is free to choose his or her working hours and workload.
Self-Employed: Definition
First of all, we need to define who is generally considered to be an independent workerThis may vary from one organization to another, and may therefore affect your obligations in terms of AHV, IV, and DI contributions. Generally speaking, you are considered self-employed if you :
- Work for yourself
- Use your own name for your business activity (invoices are in your name, for example)
- Are responsible for the risks associated with your business (particularly economic risks)
- Are free to plan your activity as you see fit (your workload and working hours, for example)
However, this definition is not absolute and depends on the compensation fund . You'll need to contact them to confirm your status.
In general, self-employed status does not apply to you if your professional activity is carried out within the framework of a company, i.e. if you are an employee in the aforementioned company.
Period of AHV contributions
Whether you are self-employed or employed, it is compulsory to contribute to AHV, IC and DI. The difference with salaried workers is that, as a self-employed worker, you have no protection against :
- Unemployment
- Accidents
What's more, unlike an employee, affiliation to the LPP (occupational benefits) and the creation of a 2nd pillar are not compulsory for self-employed workers. It's up to you to prepare for a more comfortable retirement.
For salaried employees, on the other hand, BVG contributions are compulsory; both employee and employer contribute to the scheme.
What you need to know
If you work as a self-employed person alongside your regular salaried job, you will not normally need to pay AVS contributions.
Start of contributions
Your obligation to pay AHV contributions as a self-employed person begins on 1st January following your 17 years old. In other words, you don't start contributing as soon as you reach that age. In fact, if you turn 17 on April 10, 2025, you won't start contributing until April 1.st January 2026.
End of contributions
Your AHV contributions end when you are no longer working and/or are retired. retirement age : 65 years old for both men and women (except for women born between 1960 and 1963).
If, however, you stop working before you reach retirement age, you will have to pay other contributions known as "social security contributions". contributions from persons not in gainful employment ". These also end when you turn 65.
Calculating contributions
The calculation of the AHV contribution for the self-employed depends on a number of factors, which we will describe in greater detail below.
AVS/AI/APG contribution rates
For the self-employed, the contribution rate is linked to the worker's annual salary. Starting at CHF 58,800 per year, the total contribution rate is 10 %: AVS: 8.1 % + AI: 1.4 % + APG: 0.5 %). For employees, the rate is slightly higher at 10.6 % (AVS: 8.7 % + AI: 1.4 %, APG: 0.5 %).
If, on the other hand, your salary is less than the above amount, your contribution rate to AHV, IV and EO will be lowered. progressive depending on income. It can range from 5.371 % to 10 %.
For example, for an annual salary of between CHF 31,000 and CHF 33,800, the contribution rate will be set at 6.235%. You should also bear in mind that your compensation fund also deducts a processing fee, the amount of which may vary, but which is capped at 5 %.
- Type of contribution
- Percentage
- AHV card
- AI
- APG
Sample calculation of contributions for self-employed workers
Thanks to official government toolsYou can now calculate the AHV contribution rate you will be subject to.
If you work as a self-employed person in the canton of Geneva and earn an annual income of CHF 77,000, the AHV contribution rate will be 10 %, since this amount is greater than CHF 58,800 per year.
If, on the other hand, you earn CHF 51,000 a year, your AHV contribution rate will be lower, at 8.951 %. In all cases, you'll also need to factor in administrative costs, which total a maximum of 5%.
Provisional and definitive contributions
Prepayments of contributions
The self-employed generally have to pay prepayments of contributions based on estimated income for one year.
Advance contributions are contributions whose amount is determined temporarily by a compensation fund. In other words, the definitive contributions are set after the income declaration. real.
If your determining income undergoes a significant change, you are in obligation inform your compensation fund.
Frequently Asked Questions
How much are social security contributions for self-employed workers?
For self-employed workers, the amount of social security contributions depends on their salary. If you earn more than CHF 58,800 a year, the contribution rate is 10 %, whereas if you earn less than that, the rate will be lower.
How are social security contributions calculated for the self-employed?
They are calculated on the basis of the employee's salary. They generally vary by canton.
Who is not subject to AHV?
If your salary is less than CHF 2,300, you are generally not required to contribute.
How can I find out the amount of my AHV contribution?
You can use the official government tools to determine the amount you will pay in contributions.
Who is considered self-employed?
A self-employed person is generally someone who works on his or her own account and is free to choose his or her working hours and workload.
