Overview of social security contributions in Switzerland
In Switzerland, social security charges are an integral part of the social security system. Indeed, contributions, made by both employer and employee, help protect employees from the hazards of working life.
In fact, these contributions cover various aspects of a worker's life, such as illness or other physical disabilities, retirement, loss of employment, or pregnancy and maternity for women.
Breakdown of payroll taxes
The contributions social security contributions in Switzerland are generally divided between the employee and the employer, except in the case of an activity independentwhere the worker must pay all social security contributions.
Each month, employees contribute a portion of their salary to finance these social charges. Employers, for their part, must join a social security fund. compensation fundto be able to make contributions.
Social security contributions in Switzerland
In Switzerland, when employees receive their pay slips, they can see the various social charges deducted from their salaries, which are specific to Switzerland. The various expenses social security charges are as follows:
Old Age and Survivors' Insurance (AVS)
In the Swiss pension system, AHV (or "1st pillar") is a social security benefit that enables retired workers (aged 65 and over) to receive a minimum income, for which they have paid contributions throughout their working lives.
This coverage also extends to the pensioner's dependants, such as spouses and/or children, in the event of the pensioner's death. In 2025, the AHV contribution rate will be 8.7%.
The employee and employer must each pay half of the contribution (4.35%). The AHV can be supplemented by the 2nd and 3rd pillars, which enable you to maintain a better standard of living in retirement.
Occupational pension plans (LPP)
In Switzerland, the BVG, also known as the 2nd pillar, enables retirees to enjoy a better standard of living after retirement.retirement age reached (age 65 for men and women). It complements the 1st pillar.
As with LAA/UVG, the contribution rate varies and can be between 7% and 18% of the employee's salary.
The 3rd pillar
In Switzerland, the 3rd pillar complements the other two pillars. In fact, contributions to the 3rd pillar provide a standard of living comparable to that of an employee once retirement age is reached. Contributions to the 3rd pillar are optional and entirely at the employee's expense.
Taking out a 3rd pillar is also interesting from the point of view of taxes since you can deduct these contributions from your taxable income and therefore pay less tax.
Disability Insurance (AI)
In Switzerland, disability insurance is a social security benefit that helps employees when they are unable to work (due to illness, for example). This insurance is paid either on a daily basis, or as a pension. The contribution rate for invalidity insurance is 1.4%. Here too, the employer and employee each pay half (0.7% each).
Income Loss Allowance (APG)
The APG compensates for unavoidable loss of earnings during military or civilian service. It is also there to help workers on maternity and paternity leave. Employer and employee each contribute 0.25%for a total contribution rate of 0.5%.
Unemployment Insurance (UI)
All employees and employers affiliated to the AVS must contribute to CA. The latter allows an employee who has lost his or her job to benefit from financial assistance while he or she looks for a new job.
Once again, both employer and employee are responsible for this contribution, which amounts to 2.2% of an employee's annual salary.
Accident Insurance (LAA)
This insurance protects employees against work-related accidents. The employer takes LAA at the employee's expense. If the accident in question is not related to the employee's work, he or she is responsible for paying for it. There is no fixed rate for this insurance, which varies from one workplace to another.
Family Allowances
As long as your salary is taxable, you are entitled to family allowances. Benefit amounts depend on the canton in which you work, but are generally between 0.7% and 3.5% of your gross salary. In Switzerland, benefits are paid entirely by the employer.
Frequently Asked Questions
What are social charges in Switzerland?
In Switzerland, social security contributions are an integral part of the social security system. Contributions, made by both employer and employee, help protect employees from the hazards of working life.
What risks are covered by social security contributions in Switzerland?
These contributions cover various aspects of a worker's life, such as illness or other physical disabilities, retirement, loss of employment, or pregnancy and maternity for women.
How are social security contributions distributed in Switzerland?
Social security contributions are generally divided between the employee and the employer, except in the case of self-employment, where the employee must pay all social security contributions.
Who manages social security contributions in Switzerland?
Each month, an employee contributes a portion of his or her salary to finance these social charges. Employers, for their part, must join a compensation fund in order to make these contributions.
What is Old Age and Survivors' Insurance (AHV) in Switzerland?
In the Swiss pension system, the AVS (or 1st pillar) provides retired workers (aged 65 and over) with a minimum income, for which they have paid contributions throughout their working lives. This coverage also extends to dependants, such as spouses and children, in the event of the retiree's death.
