Swiss social security contributions 2026: rates and employer costs
Gross salary is neither the amount an employee takes home nor the total cost of employing them. Here are the Swiss contribution rates and a practical method for calculating payroll.
By Sarah Prieur · Swiss certified public accountant
Swiss payroll contributions at a glance
In 2026, employees covered by the ordinary Swiss system pay 5.3% of contributory salary for old-age and survivors’ insurance, disability insurance and income compensation. Employers pay the same amount. Unemployment insurance adds 1.1% on each side, up to annual earnings of CHF 148,200. These deductions are only part of the overall payroll calculation.
Occupational pensions, accident insurance, family allowances and certain cantonal contributions must also be considered. Their calculation bases and allocation differ. There is no single percentage that converts every Swiss gross salary into net pay.
For budgeting, use total employment cost = gross salary + employer contributions + other contractual costs. Employee deductions are already included in gross salary; do not add them a second time.
The figures below concern 2026. Cross-border social security, employees above reference retirement age and certain small salaries require specific checks. Health insurance premiums and income tax are separate from the ordinary social contribution rates shown here.
Employee and employer contribution rates in 2026
| Contribution | Employee | Employer | Calculation basis or key rule |
|---|---|---|---|
| Old-age and survivors’ insurance (AVS/AHV) | 4.35% | 4.35% | Contributory salary, with no general earnings ceiling |
| Disability insurance (AI/IV) | 0.70% | 0.70% | Same basis as AVS/AHV |
| Income compensation (APG/EO) | 0.25% | 0.25% | Same basis as AVS/AHV |
| Total AVS/AI/APG — AHV/IV/EO | 5.30% | 5.30% | Subtotal: do not add it to the three preceding rows |
| Unemployment insurance (AC/ALV) | 1.10% | 1.10% | Up to CHF 148,200 a year |
| Occupational pension (LPP/BVG) | According to pension plan | According to pension plan | Insured salary and allocation depend on the fund |
| Occupational accident insurance | Normally none | Employer pays | Premium determined by insurer |
| Non-occupational accident insurance | Normally employee pays | May contribute voluntarily | Compulsory cover from 8 hours a week with the same employer |
| Family allowances | Generally none | Rate of the relevant fund | Employee participation applies in some cases, notably Valais |
| Daily sickness benefits insurance | According to agreement | According to agreement | No general federal obligation to take out this insurance |
Swiss payslips often use French or German abbreviations. AVS and AHV name the same old-age and survivors’ insurance; LPP and BVG refer to occupational pension legislation. These are not separate contributions to add together.
AVS/AHV finances retirement and survivors’ benefits. AI/IV covers disability, while APG/EO replaces income in specified circumstances, including service and maternity. The three are usually grouped on the payslip.
For compulsory accident insurance, the maximum insured annual salary is also CHF 148,200. The premium depends on occupational risk and the insurance contract: an earnings ceiling is not a contribution rate.
What happens above CHF 148,200?
AVS/AI/APG generally continues on contributory salary above this amount. Ordinary unemployment contributions stop at the ceiling. The former unemployment solidarity contribution on higher earnings is no longer charged.
A bonus can take annual earnings over the ceiling. Payroll must track cumulative earnings and the rules for employment lasting less than a full year, rather than treating each month in isolation.
Why pension deductions vary between employees
In 2026, the ordinary entry threshold for compulsory occupational pensions is CHF 22,680 a year. The standard coordination deduction is CHF 26,460, and annual salary taken into account for the statutory minimum is capped at CHF 90,720. Special rules apply to low coordinated salaries.
The familiar rates of 7%, 10%, 15% and 18% are age-related statutory retirement credits. They are neither universal employee deduction rates nor percentages to apply to the entire gross salary.
A pension invoice can include retirement savings, death and disability risk premiums, and administration fees. A plan may insure more than the legal minimum. The employer must contribute at least as much as all employees combined under the statutory funding rule.
Use the actual pension plan and fund statement for payroll. Two employees on the same gross salary can have different deductions because of age or plan conditions.
Additional contributions in Geneva
Geneva payroll can include cantonal maternity insurance and an early-childhood contribution. For 2026, OCAS publishes the following reference rates:
| Contribution | Employee | Employer |
|---|---|---|
| Geneva maternity insurance | 0.029% | 0.029% |
| Early-childhood contribution | — | 0.07% |
| Family allowances through the OCAS fund | — | 2.22% |
The 2.22% family allowance rate applies to the OCAS fund. It is not a universal Swiss rate and should not automatically be used for an employer affiliated to another fund. Check administration fees and any other contributions against the relevant fund’s schedule.
Funding family allowances does not mean that every employee receives them. Entitlement depends on family circumstances and the applicable rules.
Example: CHF 6,000 gross monthly salary in Geneva
Assume twelve monthly salaries of CHF 6,000, ordinary AVS/AHV and unemployment coverage, non-occupational accident cover and an occupational pension.
For this illustration only, use a 1% non-occupational accident premium, 0.7% occupational accident premium, sickness cover of 0.6% for each party, a CHF 300 pension contribution for each party, and CHF 6 employer administration fees. These variable figures are assumptions, not statutory tariffs or insurance quotes.
| Monthly item | Employee deduction | Additional employer cost |
|---|---|---|
| AVS/AI/APG at 5.3% | CHF 318.00 | CHF 318.00 |
| Unemployment at 1.1% | CHF 66.00 | CHF 66.00 |
| Geneva maternity insurance | CHF 1.74 | CHF 1.74 |
| OCAS family allowances | — | CHF 133.20 |
| Early-childhood contribution | — | CHF 4.20 |
| Occupational accidents, assumed rate | — | CHF 42.00 |
| Non-occupational accidents, assumed rate | CHF 60.00 | — |
| Sickness cover, assumed rate | CHF 36.00 | CHF 36.00 |
| Occupational pension, assumed amount | CHF 300.00 | CHF 300.00 |
| Administration, assumed amount | — | CHF 6.00 |
| Total | CHF 781.74 | CHF 907.14 |
Pay after these deductions is CHF 5,218.26, before any withholding tax or other adjustment. The employer’s monthly payroll cost is CHF 6,907.14.
This excludes equipment, recruitment, training and replacement cover. A contractual thirteenth salary also changes the annual budget. The example shows why “gross salary minus 10%” is not a reliable payroll method.
What to check before running payroll
First establish contributory salary. Fixed pay, bonuses, commissions and benefits in kind may enter contribution bases. Properly supported business expense reimbursements are not automatically salary. Tax reporting on the Swiss salary certificate and social insurance rules must be reconciled without treating them as identical.
Next check the employee’s status. An owner paid by their Swiss limited company is generally an employee of that company. A person recognised as self-employed by the compensation office falls under a different system. Do not apply the employer–employee table to their independent income.
Reconcile payroll, bank payments and fund statements. Amounts withheld from employees remain liabilities until remitted. Keep gross wages, employer contributions and social insurance liabilities separate in the accounts.
Before a first hire starts work, arrange the necessary affiliations and obtain the insurance information. The employment contract should agree with the pay and benefit settings used in payroll.
Frequently asked questions
Are Swiss social security deductions always 15%?
No. AVS/AI/APG and unemployment rates are only the starting point. Pension plans, insurance premiums, age and cantonal contributions change the result.
Is withholding tax a social security contribution?
No. Withholding tax is income tax collected through payroll. It should be distinguished from pension and social insurance deductions.
Must the employer pay into pillar 3a?
Pillar 3a is personal retirement provision, not a general mandatory employer payroll contribution.
Who pays the contributions to the compensation office?
The employer normally remits both its own share and the amounts withheld from employees.
Can I calculate take-home pay from gross salary alone?
Not reliably. You also need the pension plan, insurance rates, contribution status and any applicable withholding tax.
Sources and further reading
Updated on 18 September 2026, based on the official guidance below. Worked examples are illustrative and state their assumptions. Individual circumstances may require a separate assessment.
About the author
Sarah Prieur
Sarah Prieur is a Swiss certified public accountant, partner and head of operations at Karpeo. She supports SMEs, self-employed professionals and entrepreneurs with accounting, tax and VAT, and oversees the quality of client work. Before joining Karpeo, she spent eight years in audit at PwC Switzerland, progressing to manager.
More about Sarah →