Swiss Payslip Decoder 2026: Every Deduction Explained

Payslip line-by-line: what each CHF deduction funds

Payslip line	Rate (employee)	At CHF 8k/month	What it funds	You can claim when
AHV/IV/EO	5.3%	CHF 424	State pension + disability	Retirement (age 65/64), disability, maternity EO
ALV	1.1%	CHF 88	Unemployment insurance	After 12 months contributions, involuntary job loss
BVG (age 35-44)	5.0%	CHF 295	Occupational pension fund	Retirement, permanent disability, or early withdrawal (home purchase)
UVG NBU (non-occ. accident)	~1.5%	CHF 120	Non-work accident coverage	Any non-occupational accident (sports, domestic)
Total deducted	~12.9%	CHF 927
Net before income tax		CHF 7,073

Note: income tax is NOT deducted on this payslip for Swiss citizens and Permit C holders. For B/G/L permit holders, Quellensteuer (withholding tax) applies: typically 10–30% of gross depending on canton, civil status and salary. See our guide on tax deductions for expats in Switzerland and our gross-to-net calculator for the full picture.

AHV, Old-Age and Survivors Insurance (First Pillar)

The AHV (Alters- und Hinterlassenenversicherung) is Switzerland's state pension, the first of the three-pillar pension system. Every person working in Switzerland pays AHV, with no income ceiling on contributions. The 2026 combined AHV/IV/EO rate is 10.6% of gross salary, split equally at 5.3% each between employer and employee. This is deducted automatically from the payslip.

AHV benefits are based on contribution years (full entitlement requires 44 years) and average insured salary. The maximum AHV pension is CHF 2,520/month for singles; CHF 3,780 for couples (2026). This is insufficient for Swiss living costs alone, the system is explicitly designed as a partial replacement, supplemented by occupational pension (BVG) and private savings (Säule 3a). Arrivals who start contributing later will have fewer contribution years, potentially resulting in reduced AHV pensions unless gaps are voluntarily closed.

BVG, Occupational Pension (Second Pillar)

The Law on Occupational Retirement, Survivors' and Disability Pension Insurance (BVG) requires employers to provide a pension fund. Mandatory coverage applies to employees earning more than CHF 22,680 per year; workers below this threshold (common in low-hour part-time work) receive no occupational pension contributions. This threshold is a significant concern for international workers accepting Swiss employment contracts on reduced hours.

BVG contributions are age-graduated: 7% for ages 25-34, 10% for 35-44, 15% for 45-54, 18% for 55-65. These rates apply to the "coordinated salary" (gross minus a coordination deduction of CHF 26,460 in 2026). Employers must pay at least 50% of contributions; many large employers pay significantly more. When changing jobs, the BVG balance transfers via the Freizügigkeitsstiftung (vested benefits foundation) to the new employer's fund.

KVG, Health Insurance

Switzerland's mandatory health insurance (KVG/LAMal) is the most important departure from continental European norms. Health insurance premiums are paid entirely by the employee, employers have no legal obligation to contribute. Monthly premiums vary significantly by canton, age and model: in Zurich, a standard adult premium in 2026 runs approximately CHF 430-500/month for the base model with CHF 300 deductible (franchise).

New arrivals have 3 months from entry to choose a health insurer. Missing this deadline results in administrative assignment, typically to a more expensive insurer. The choice of model (Standard, GP-gated Hausarzt, Telmed) and franchise level (CHF 300-2,500) significantly affects premiums. A higher franchise saves on monthly premiums but increases out-of-pocket costs when medical care is needed. The 10% co-payment (Selbstbehalt) applies up to a maximum of CHF 700/year after the franchise is exhausted.

Health insurance is the one Swiss payroll line your employer never touches, the entire KVG premium is yours alone, which is precisely why the franchise you pick matters more than the salary you negotiate.

ALV, Unemployment Insurance

Unemployment insurance (ALV) provides income replacement when employment ends involuntarily. The benefit is 80% of insured salary (70% for those without dependent children) for up to 520 daily allowances, equivalent to approximately two years of coverage for those who qualify. The contribution rate is 2.2% total on salaries up to CHF 148,200 (1.1% each employer and employee). A 1% solidarity surcharge applies to salary above CHF 148,200.

Entitlement requires at least 12 months of contributions within the 2 years before job loss. EU/EFTA nationals with a B permit can claim ALV immediately from the RAV (regional employment centre), provided Swiss residence is maintained. Non-EU permit holders who lose employment also qualify but must find new employment within the validity of their permit.

UVG, Accident Insurance

Occupational accident insurance (UVG) is compulsory for all employees. The employer pays 100% of the premium for occupational accident coverage; the employee pays for non-occupational accident (NBU) coverage, typically at 1-2% of gross salary. SUVA is the primary insurer for most sectors; private insurers cover some industries. In the event of a workplace accident, UVG covers all medical costs and pays 80% of salary from day three. Non-occupational accident cover is only included for employees working more than 8 hours per week, those below this threshold must insure separately via KVG.

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Frequently Asked Questions

What percentage of salary goes to social security in Switzerland?

Employee deductions total approximately 12-16% of gross salary: AHV/IV/EO 5.3%, ALV 1.1%, BVG 3.5-9% depending on age, NBU ~0.5%. Health insurance premiums (CHF 400-600+/month) are paid separately and not deducted from the payslip, making the real cost of Swiss living higher than the payslip deductions suggest.

Is BVG pension mandatory for part-time workers?

Only if the annual salary from a single employer exceeds CHF 22,680. Part-time workers earning below this threshold from each employer individually have no mandatory BVG, even if combined income is higher. Multiple-employer situations require checking each contract separately; the Stiftung Auffangeinrichtung can provide voluntary BVG coverage.

What happens to BVG savings when leaving Switzerland?

For departure to a non-EU/EFTA country: full cash payment is possible. For departure to an EU/EFTA country: only the above-mandatory (überobligatorische) portion can be paid out; the mandatory minimum must remain in a vested benefits account until Swiss retirement age. Tax is withheld on the payment at source.

Does the employer contribute to health insurance in Switzerland?

Not legally required. Some employers voluntarily subsidise KVG premiums or supplementary insurance (private ward, dental) as part of the total compensation package. At large employers like Roche, Novartis and UBS, supplementary insurance contributions are common benefits, worth negotiating as part of the overall package.

How can I calculate my exact net salary in Switzerland?

The most reliable method: apply the fixed social insurance deductions (AHV 5.3%, ALV 1.1%, BVG by age bracket, ANP ~1.2%), then add income tax using the official cantonal calculator for your situation. Our gross-to-net salary guide provides worked examples for Geneva, Zurich and Zug, covering B-permit holders and residents at CHF 80,000 to CHF 200,000 annual salary.