Take-home pay calculator
Estimate your take-home pay
What is gross salary?
Gross salary is the compensation an employee receives before any deduction. It includes:
- Base salary
- Any bonuses
- Benefits in kind
- Overtime
This amount is mentioned in the employment contract and serves as base for calculating social security contributions and taxes. The gross salary therefore does not represent the amount actually received by the employee, as some compulsory deductions are then calculated to obtain the net salary.
What is net salary?
Take-home pay is the amount the employee receives in his or her bank account after deducting all the expenses incurred in the course of his or her employment. social security contributions and taxes. It represents the gross salary less contributions. The net salary is therefore disposable income for the employee, used for personal and family expenses.
What does take-home pay include?
Take-home pay includes the following elements:
- AVS/AI/APG contributions
- Unemployment insurance contribution (AC)
- LPP contribution
- AANP dues
Payroll management with Fidulex
Would you like to delegate your company's payroll management? Take advantage of our all-inclusive employee management service. From CHF 35 per month.
Difference between gross and net salary
To sum up, gross salary includes base salary, bonuses, overtime and benefits in kind. It is the total amount before deductions. It serves as the basis for calculating social security contributions and income tax.
Take-home pay, on the other hand, is the remaining amount after deduction of social security contributions. It includes compulsory deductions in Switzerland, such as the first and second deductions. second pillarand various insurances. It represents the actual income available to the employee.
How to calculate take-home pay
Let's take the example of a 48-year-old man with a gross salary of CHF 10,000 per month:
- Gross salary
CHF 10'000.00
- AHV contribution
- CHF 527.50
- AC contribution
- CHF 110.00
- AANP membership fee
- IJM contribution
- BVG* contribution
- Total employee expenses
- Total net salary
Details of deductions
AHV contributions
AVS/AI/APG contributions correspond to 5.725% of gross salary. Contributions amount to 8.7% for theAHV card1.4% for theAIand 0.5% for theAPGThese are divided equally between employer and employee.
Thus, each party pays respectively 4.35%, 0.7%, and 0.25% of gross salary. For the self-employed, the rates are 8.1% for AVS, 1.4% for AI, and 0.5% for APG on net income.
AC contributions
In Switzerland, contributions to theunemployment insurance (AC) are compulsory contributions that provide financial assistance in the event of job loss.
Contribution rates are 2.2% of gross salary, divided equally between employer and employee, i.e. 1.1%.
AANP contributions
Non-occupational accident insurance (NAAI) contributions are compulsory for employees working more than 8 hours a week with the same employer. This insurance covers accidents occurring outside the workplace.
The contribution rate may vary depending on the sector of activity and the insurer chosen. In general, the rate is between 1% and 3% of the employee's gross salary.
IJM contributions
Daily sickness benefit (Indemnité Journalière Maladie - IJM) contributions provide employees with a replacement income in the event of incapacity for work due to illness or accident.
The insurance is not compulsory at federal level, but it is often offered by employers (some of them are in France). Collective Labour Agreements require the employer to take out an IJM).
The contribution rate varies according to the insurer, the coverage chosen and the sector of activity. In general, the rate can range from 0.5% and 2% of gross salary.
BVG contributions
Contributions to occupational pension plans (BVG) are part of the social security system. The main aim of the LPP or 2nd pillar is to maintain the same standard of living as before retirement. Contribution rates depend on the employee's age, and increase progressively (contributions are shared equally between employee and employer):
- Age 25 to 34 : 7% of insured salary
- 35 to 44 years : 10% of insured salary
- 45 to 54 years : 15% of insured salary
- Age 55 to 65 : 18% of insured salary
Frequently Asked Questions
What's the difference between gross and net pay?
Gross salary is the salary excluding contributions. It is higher than the net salary. The net salary is the gross salary. decreased compulsory contributions.
What is the average salary in Switzerland?
The average salary in Switzerland is CHF 6,788 per month.
How do you calculate your net salary from your gross salary?
To calculate your net salary from your gross salary, you can use our online calculatoror by calculating your contributions manually, depending on your situation.
