Everything You Need to Know About the Payslip in Switzerland
Payslip: Definition
But first, it's important to understand what it's all about. a salary slip in Switzerland.
At the end of each month, an employee receives a payslip. This document is crucial, as it shows how much money you'll receive, based on the period of time over which you've worked (monthly salary, hourly wage or commission). So far, so good.
Where things get complicated is for other categories that may puzzle you, such as the distinction between take-home pay and gross pay or the various social deductions.
Payslip Sections
In this article, we will detail the different sections that make up your payslip in the Swiss context.
This document contains information such as the period concerned, the date on which your salary is paid, your AVS number and also the following categories :
Gross Salary
Your gross salary includes :
- Your fixed salary
- Your variable salary
- Perks
- Base salary
Depending on the employer, it may be paid in 12 or 13 monthly instalments.
You will then receive 1/12th or 1/13th of your annual salary each month.
- Variable salary
It is also known asbonus."
The latter is a extraordinary income which can be awarded to an employee for good performance and/or company performance.
- Perks
These may include items such as the cost of employee transport (vehicle, gas), meals or accommodation.
Family Allowances
In Switzerland, you are entitled to receive family allowances if your salary is taxable, whether you are an employee or not.
The conditions for receiving these and the amounts depend on the canton where you do business.
You can expect to receive 200 francs per month for any child up to the age of 16, while for a child in training, you will receive 50 francs more per month.
Your employer can also increase this amount but this will depend on the company.
Contributions to Old Age and Survivors' Insurance (AVS)
Also known as 1st pillarThe AVS allows you to compensate for the cessation of your activity once you have retired. To qualify, you must contribute until retirement age; 65 years old for men and women.
In addition to your retirement pension, you may also be entitled to a disability pension and a survivor's pensionwhich the spouse and/or children can benefit from in the event of the death of one of the parents.
The contribution rate has been set by the Swiss government. It will therefore be the same regardless of your employer or company.
The contribution rate for an employee is 8.7% but in the case of self-employment, the contribution rate will be slightly lower, at 8,1%.
Disability Insurance (AI) Contributions
Following an illness or accident that prevents you from working, this insurance is there to help you help a worker resume his or her professional activity.
It can be paid per day or as an annuity.
Like the AVS, the contribution rate is set by the Swiss government.
Income Loss Allowance (APG)
This allowance has the same function as the AI, but applies specifically to anyone in the Swiss army.
As its name suggests, it will enable you to compensate for lost earnings during military or civilian service.
It also compensates for maternity benefits (AMat), allowance to the other parent (formerly known as the paternity allowance or APat) and care allowances (APC), discussed below.
The contribution is a fixed rate, determined by the Confederation.
Maternity Insurance (AMat)
This allowance is available to all women who are employed or self-employed at the time of their child's birth.
This insurance is also available to women who are unemployed or unable to work due to disability, illness, or an accident, subject to certain conditions.
An unsalaried woman active in a regular work report can also benefit from this insurance, but here too there are certain conditions to be met.
A woman will be entitled to this insurance from the day of delivery for 98 days.
The insurance will be paid daily. It is compensated by the APG.
Allowance for the Other Parent (formerly paternity insurance or APat)
At birth and during the first 6 months of lifeIf you are an employed or self-employed parent who has not given birth, you will be granted an average of two weeks' leave, an amount that can vary depending on your activity.
This allowance is also compensated by APGin the same way as AMat.
Unemployment Insurance (AC)
This insurance, paid for by all employees affiliated to AVSto finance the Swiss unemployment systemwhich every worker benefits from when they stop working.
Anyone who works and is affiliated to the AVS must therefore contribute to CA.
Pension Fund (2nd pillar)
The 2nd pillar supplements the AHV and helps offset the loss of income once you reach retirement age.
Membership of the 2nd pillaralso known as a pension fund, is compulsory for everyone who pays AVS contributions and earns a salary. of at least 21,510 francs.
Accident Insurance (LAA)
All Swiss employees are covered by occupational accident insurance (AAP) and non-occupational accident insurance (AANP)..
The AAP is paid by the employer, while the AANP is only paid by the employer when an employee is working. eight hours or more per week within the company.
If you are self-employed, you will need to turn to the SUVA to take out this insurance.
Withholding Tax
The amount of withholding tax depends on a number of factors, including where you live and your salary.
Indeed, a person domiciled abroad but earning a salary in Switzerland will be taxable, as will a foreigner domiciled in Switzerland who earns a salary below a certain amount.
Net Salary
Once all the above items have been deducted, you will be left with your final salary, your take-home paywhich corresponds to what will be paid into your bank account.
Frequently Asked Questions
What is the difference between net and gross salary in Switzerland?
Gross salary is the total amount an employer agrees to pay an employee, without taking into account any contributions. It includes fixed and variable salary, as well as perks.
The net salary is the amount you will receive after these contributions.
What is included in the AVS?
On some salary slips, AI and APG (which also compensates AMat and the other parent's allowance) are included under AVS.
Who sets the AVS contribution rate?
The contribution rate is set by the Swiss government.
The contribution rate will be different if you are employed (8.7 %) or self-employed (8.1 %).
Salary certificate and payslip: same thing?
In Switzerland, those documents are indeed two different things.
The payslip is a document given to you each month, while an a salary certificate is provided by your employer each year, so that you can file your tax return.
Who must pay unemployment insurance contributions?
All workers affiliated to the AVS must contribute to theinsurance unemployment.
Does my employer have to pay for the AAP?
Yes, your employer must cover it. In the case of AANP, however, the employer is not obliged to pay if you work less than eight hours a week for the company.
What is the minimum wage in Switzerland?
There is no universal minimum wage in Switzerland. Some have set a minimum wageThis is the case in the canton of Geneva, for example.
