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Sarah stares in disbelief at her first payslip in Switzerland. "Wait a minute, where has all the rest of my salary gone?" Many employees ask themselves this question when they receive their pay slip for the first time. Swiss payroll accounting in your hands. You may be familiar with the situation: the gross salary looks fantastic on paper, but after all the deductions, there is significantly less left than you had hoped for.
In this article you will find out exactly, what salary deductions await you throughout Switzerland and - more importantly - why these deductions make sense and how you can make the most of them.
Before we dive into the details, you should know: As an employee in Switzerland, you must work with Deductions between 15 % and 25 % of your gross salary. This may seem like a lot at first, but these deductions provide you with comprehensive cover - from pension provision to accident protection.
| Deduction | Contribution rate (2025) | Who pays? |
|---|---|---|
| AHV/IV/EO | Total 10.6 % - of which 5.3 % each for employee and employer | Employee and employer each pay half |
| ALV (up to CHF 148,200) | 1.1 % (above 0.5 % solidarity contribution) | Employee and employer each pay half |
| BVG (pension fund) | Depending on age: approx. 7 - 18 % on the coordinated salary | Employer at least 50 %, rest employees |
| NBU (non-occupational accident) | Typically 1 - 2 % of gross salary | Mostly employees (some AGs participate) |
| BU (occupational accident) | Employer pays in full (for you 0 %) | Employer |
| Daily sickness benefits (KTG) | Usually 0.5 - 1 % (optional, depending on the company) | Often employees (partly AG participation) |
| Withholding tax | Very different (approx. 10 - 25 % of salary) | Deducted directly from salary (if B/L authorisation) |
The AHV (old-age and survivors' insurance) is the foundation of the Swiss pension system. Together with the IV (disability insurance) and the EO (Income Compensation Ordinance) it forms the first pillar of the pension system.
From your gross salary go 5,3 % to the AHV/IV/EO. Your employer pays the same amount again to the compensation office. For an annual salary of CHF 80,000, this means
Good to know: These contributions are not lost, but provide you with a basic pension in old age.
Occupational pension provision supplements the AHV and, together with the first pillar, should provide you with around Allow 60 % of your last salary in retirement. The amount of your pension fund contributions depends on your age:
These percentages relate to the coordinated wage (annual income minus Coordination deduction).
Example for an employee with an annual salary of CHF 80,000 and aged 35:
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ALV is your financial Safety net in the event of unemployment. You pay:
With our example salary of CHF 80,000, you pay around CHF 73 per month. By the way, here you can find an article with typical Swiss wages.
Occupational accident insurance is paid in full by your employer and is compulsory from 8 working hours per week. The Non-occupational accident insurance (NBU) is at your expense and typically amounts to between 1 - 2 % of your gross salary.
Speaking of monthly deductions and financial planning: it's important to keep an overview of your finances, especially with various insurance deductions. With Zakthe neobanking app from Bank Cler, you can manage your Categorise expenses intelligently and plan your budget optimally. The virtual savings pots help you to automatically build up reserves for various insurances and other fixed costs.
Particularly practical: on the Savings account from Zak you receive attractive interest so that your reserves for insurance premiums and other regular payments do not simply sit in your account without earning interest.
Let's get back to the other important insurance deductions that await you as an employee in Switzerland ...
You usually share this voluntary insurance with your employer. The daily sickness benefits insurance continues to pay your salary in the event of prolonged illness. The usual contributions are 0.5 - 1 % of gross salary.
If you are subject to withholding tax (e.g. B residence permit), tax will be deducted directly from your salary. The amount varies considerably depending on the canton, municipality and personal situation and is typically between 10 % and 25 % of the gross salary.
Depending on the employer, further deductions may be made:
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Strategic optimisation of your salary deductions starts with well thought-out pension planning. Here you can find out the most effective ways to Save taxes legally and at the same time your Optimise your pension provision can.
In 2025, people in employment can pay up to CHF 7,258 into pillar 3a. These payments are fully deductible from taxable income, which can lead to considerable tax savings depending on the canton of residence.
Of particular interest here is the 3a solution in the 3a Zak App from Bank Cler. It not only enables you to make traditional pillar 3a savings, but also allows you to invest in securities. You can choose between different investment strategies and thus utilise the growth potential of the stock markets for your retirement provision. The app makes it particularly easy to keep an eye on your deposits and investments.
Voluntary purchases into the pension fund offer a further opportunity for tax optimisation. These purchases can also be deducted from taxable income. Careful planning is essential here, as these purchases are tied to the long term and usually make more sense in the years shortly before retirement.
Let's take a monthly salary of CHF 6,667 (CHF 80,000/year):
Gross wage: 6'667 CHF
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Swiss payroll deductions can seem complicated at first glance, but they offer you an important safety net. And the best thing is: with the right strategy, you can not only keep an overview, but also minimise the Even use deductions to your advantage.
These tips will help you stay in control of your finances:
One particularly important point at the end: many employers are prepared to cover part of the voluntary insurance deductions or pay a higher proportion into your pension fund, for example. This can quickly add up to several thousand francs per year. Take advantage of this opportunity with your next Wage negotiation - – Here you can find out how best to address the topic.
With this knowledge, you are ideally equipped to optimise your payroll deductions and keep more of your well-earned money for yourself. To help you keep track of your deductions, fixed costs and savings goals, Zak helps you with its intelligent savings pots and practical budgeting. So you can make the most of your salary!
Transparency notice: This article was created in collaboration with Zak from Bank Cler. The content and presentation have nevertheless been freely and independently designed by Schwiizerfranke.
The information on Zak is intended exclusively for persons domiciled in Switzerland. A Zak account can only be opened with domicile in Switzerland.
Partly yes, especially with voluntary insurance and skilful tax planning. Your employer can even take over some deductions voluntarily, so that would be a point for the next Wage negotiation.
They remain with you and are transferred to the new pension fund. In the event of a longer interruption, they can be parked in a vested benefits account.
Usually yes, as they are generally tax-deductible and improve your pension provision. However, there are exceptions, which is why a purchase should be checked carefully.
One Response
Super helpful explanation! Especially as someone who is new to working in Switzerland, a lot of this wasn't quite clear to me - especially the difference between BU and NBU. Thank you for the clear breakdown of salary deductions!