Payslip in Switzerland: How Does It Work?

Salary slip in Switzerland: how it works

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Salary slip in Switzerland: how it works

Everything You Need to Know About the Payslip in Switzerland

A Swiss payslip contains a large number of categories and information which is essential to understand to obtain the benefits that you are entitled to.

Our guide will help you better understand this document and what will be deducted from your salary.

This will particularly help you spot any potential mistakes in your payslip. 

Payslip: Definition

But first, it's important to understand what a payslip is 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.

Things get a bit more complex concerning the other categories in the payslip, that might leave you confused, such as the distinction between net and gross salaries, or the various social contributions.

Payslip Sections

In this article, we'll look at the various sections that make up your payslip in Switzerland specifically.

This document contains information such as the period of time you've worked, the date on which your salary is paid, your OASI (called AVS in Switzerland) number and the following categories:

Gross Salary

Your gross salary includes :

Depending on the employer, it can be paid in 12 or 13 monthly instalments.

You will then receive 1/12th or 1/13th of your annual salary each month.

It's also known as a "bonus."

The latter is an exceptional income that can be granted to an employee following a good performance and/or that of the company.

These may include items such as the cost of the employee's transportation (vehicle, gas), meals, or accommodation.

Family Allowances

In Switzerland, you are entitled to family allowances if your salary is subject to tax, whether you are an employee or self-employed.

The conditions for receiving these and the amounts depend on the canton in which you work.

You can expect to receive 200 CHF a month for any child up to the age of 16. if your child is pursuing higher education, you will receive an extra 50 CHF a month.

Your employer can also add to this amount, but this will depend on the company.

Contributions to Old Age and Survivors' Insurance (AVS)

Also known as the 1st pillar, the AVS allows you to compensate for the loss of your salary once you have retired. To qualify, you must contribute up to retirement age, which is set at 65 for both men and women in Switezerland.

In addition to your retirement pension, you may also be entitled to a disability pension and a survivor's pension, which your spouse and/or children may receive in the event of your passing.

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 a little lower at 8.1%.

Disability Insurance (AI) Contributions

Following an illness or accident making it impossible to work, this insurance is there to help a worker get back to work.

It can be paid on a daily basis 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 compensate for loss of earnings during military or civil service.

It also contributes towards maternity benefits (AMat), allowance to the other parent It also contributes towards maternity benefits (AMat) and the allowance to the other parent (formerly known as the paternity allowance or APat) and the APC (Support Allowance), which we will discuss later.

The contribution is a fixed rate, determined by the Confederation.

Please note

On some payslips, the name AVS includes AI and APG.

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 working environment can also benefit from this insurance, but here too there are certain conditions to be met.

A woman is entitled to this insurance from the day she gives birth and for the next 98 days.

The insurance will be paid on a daily basis. It is compensated by the APG.

Allowance for the Other Parent (formerly paternity insurance or APat)

When a child is born and for the first 6 months of its life, an employed or self-employed parent who has not given birth will be granted an average of two weeks' leave, an amount that can vary depending on the type of employment the parent has.

This allowance is also compensated by the APG, in the same way as the AMat.

Unemployment Insurance (AC)

This insurance, paid by all workers affiliated to the AVS, helps finance the Swiss unemployment system, from which all workers benefit when they stop working.

Anyone who works and is affiliated to the AVS must therefore contribute to the AC.

Pension Fund (2nd pillar)

The 2nd pillar supplements the AVS and helps to offset the loss of income once a worker reaches retirement age.

Contribution to the 2nd pillar, is compulsory for anyone who pays AVS contributions and earns a salary of at least CHF 21,510.

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 works eight or more hours a week for the company.

If you're self-employed, you'll need to contact SUVA to take out this insurance.

Withholding Tax

The amount of withholding tax you pay depends on a number of factors, including where you live and your salary.

Indeed, a person living abroad but earning a salary in Switzerland will be subject to tax, as will a foreigner based in Switzerland who earns a salary below a certain amount.

Net Salary

Once all the above items have been deducted, you'll be left with your take-home pay, your net salary, which is the amount that will be deposited into your bank account.

Conclusion

You know everything!

This information will enable you to find out more about your rights and exactly what will be deducted from your salary.

Frequently Asked Questions

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.

On some salary slips, AI and APG (which also compensates AMat and the other parent's allowance) are included under AVS.

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 %).

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.

All workers affiliated to the AVS must contribute to unemployment insurance.

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.