Business Services
Payroll Accounting
Efficient, transparent, and legally compliant payroll accounting to correctly manage your salary statements, reliably settle social security contributions, and safely meet compliance requirements.
Payroll Statements
Allowances
+ Bonus
+ 13th Month Salary
+ Overtime
+ Child or Education Allowances
= GROSS SALARY
Percentage deductions from gross salary:
- AHV/IV/EO = 5.3%
- ALV 1 = 1.1% (up to CHF 148,200 per year)
- ALV 2 = 0.5% (over CHF 148,200 per year)
- BVG = 7-18%
Depending on age, not mandatory under certain conditions, premium may vary from insurance provider if not Suva, as insurers have different calculation models for the risk portion
- NBU = Variable
Premium difference may depend on employee, industry, and insurance provider.
- Withholding Tax
Only for foreign employees - variable by residence, marital status, and religion.
- Industry-specific deductions like FAR, Parifond, etc.
Good employers pay the deductions but don't burden the employee, while profit-oriented employers may pass various deductions on to the employee.
= NET SALARY
If allowances or expenses apply, they are added to the net salary along with various corrections
Payroll Social Insurance
Old Age and Survivors' Insurance (AHV)
Who is subject to AHV?
As an employer in Switzerland, you are responsible for ensuring that your employees receive the legally required contributions. In addition, employers abroad may also be subject to these requirements due to EU or EFTA agreements if they employ persons who are legally required to be insured.
For low earners with an annual salary of less than CHF 2,300, there are special conditions to avoid the contribution obligation.
Advance Contributions
Advance contributions to the compensation office are based on the expected annual salary. Up to CHF 200,000 per year, contributions are only due quarterly; for higher incomes, they are due somewhat more frequently - in this case monthly!
AHV Contribution Rates (as of 2023)
Contributions to AHV/IV and EO are split between employees and employers and amount to 10.6% of an employee's salary (AHV 8.7%, IV 1.4%, EO 0.5%). Unemployment insurance contributions are 2.2%. For income over CHF 148,200, you pay even more in the form of solidarity contributions - but don't worry: both sides share the burden equally!
Federal Law on Occupational Old Age, Survivors' and Disability Insurance (BVG)
BVG is a popular term for the second pillar of the Swiss social security system. BVG stands for "Federal Law on Occupational Old Age, Survivors' and Disability Insurance" and describes the legal requirements necessary for granting pension benefits.
If you are between 25 and 34 years old, the contribution to pension insurance is a low 7%. But don't worry! Your employer covers 50% of these costs to ensure you're well protected in retirement - especially if you're between 55 and 64 years old and have to pay a contribution rate of 18%.
Collective Daily Sickness Benefits Insurance (KTG)
As an employer, illness can be a worrying and expensive matter. But with collective daily sickness benefits insurance, you're financially relieved in case your employee gets sick - not to mention that some companies are legally obliged to continue paying wages during the employee's absence! Taking out such insurance is highly recommended.
Accident Insurance (UVG)
Swiss employers are required to comprehensively insure their staff against accidents and occupational diseases as required by the Accident Insurance Act (UVG).
Declarations | AHV, BVG, KTG, UVG, etc.
Year-End Declarations
At year-end, all declarations must be submitted on time, usually by January 31. Proactive accounting and careful accruals are crucial to meet all legal requirements and minimize financial risks.
Obtain account statements from AHV, BVG, KTG, UVG, and other providers. These documents serve to verify your bookings and payment flows. Official documents increase the certainty that all transactions are correctly recorded and up to date.
Professional payroll accounting relies on specialized software to create precise declarations, make bookings error-free, and always maintain an overview of complex payment structures.