--- title: "Switzerland" id: "11733" type: "global-payroll" slug: "switzerland" published_at: "2025-08-03T10:55:43+00:00" modified_at: "2026-10-13T15:04:17+00:00" url: "https://topsourceworldwide.com/global-payroll/switzerland/" markdown_url: "https://topsourceworldwide.com/global-payroll/switzerland.md" taxonomy_continent: - "Europe" --- # Payroll Services in Switzerland Fully managed Swiss payroll: AHV, unemployment insurance, BVG pension and source tax calculated on every payslip in all 26 cantons, with a named specialist a phone call away. [Get in touch](https://topsourceworldwide.com/contact-us/) TopSource rated 5/5 by our customers - - - - - [Read reviews](#testimonials) ## What a payroll company in Switzerland handles for you Payroll in Switzerland combines federal social insurance, a pension fund, accident insurance and, for many foreign employees, tax withheld at source under cantonal rules. Contribution rates are unchanged for 2026, and Parliament has decided not to raise salary contributions to pay for the 13th AHV pension. ### AHV/IV/EO and unemployment insurance Employer and employee each pay 5.3% AHV/IV/EO on all pay and 1.1% unemployment insurance on pay up to CHF 148,200 a year. Contributions go to the compensation office monthly or quarterly. ### BVG pension from CHF 22,680 Employees earning over CHF 22,680 a year join a pension fund. Age credits of 7% to 18% apply to the coordinated salary, and the employer pays at least half. ### Source tax for foreign employees Employees without a C permit are taxed at source: you deduct cantonal tax from each salary, remit it and keep a collection fee of 1% to 2%. From CHF 120,000 a year they also file a tax return. ### Family allowances and accident cover Employers fund cantonal family allowances, at 1.025% to 2.75% of pay, and insure every employee against accidents. Child allowances are at least CHF 215 a month. ### Annual salary declaration by 30 January Compensation offices settle the year from your salary declaration, due by 30 January. Contributions paid late carry 5% annual interest, charged whether or not you are at fault. ## Our Partners Globally ## Calculate Your Employee Costs in Switzerland Enter a gross annual salary to see the employer’s statutory cost in Switzerland for 2026: AHV/IV/EO, unemployment insurance, the family allowance contribution in the canton of Zurich and the minimum BVG pension share. ##### Employment Cost Calculator *Indicative figures only and not definitive legal advice. Local regulations change frequently. [Consult an expert](/contact-us/) ##### Switzerland Annually Monthly | | British Pound | Switzerland | | --- | --- | --- | | Base Salary (per month) | | | | Employer Contributions | | | | Total Cost (Annual) | | | | Total Cost (Monthly) | | | Employer of Record services in [Learn more](#) Payroll Outsourcing in [Learn more](#) ## Know your Swiss hiring costs before you commit Tell us the role, the canton and the salary. We’ll send back the full employer cost and the employee’s net pay after social insurance and pension contributions within one business day. [Get a Custom Payroll Quote](https://topsourceworldwide.com/contact-us/) > “Their expertise and understanding of the unique hiring, payment, and human resource practices in each country has been nothing short of outstanding. Our Client Success Manager, has done just that … ensured our success. Her availability and willingness to engage on a personal level has made all the difference.” Director of Research Operations, > “Excellent service, especially from our account manager who has gone above and beyond to help us use the platform effectively. Our manager, significantly simplifies my workload. It is like having your own TopSource HR representative on your team.” Chief Human Resources Officer, > “TopSource has been our go-to resource for international hiring. They are responsive, thorough, respectful and knowledgeable. The Client Success team has provided us with the utmost customer service, and the more we use TopSource, the more, it gives us access to more resources and knowledge.” Senior Manager, Human Resources , ## Employer Costs in Switzerland Explained A Swiss employee costs about 10% on top of gross salary in statutory contributions, before accident insurance and any pension cover above the legal minimum. The exact figure depends on the canton, the pension fund and the employee’s age. Here’s the breakdown. #### AHV/IV/EO, unemployment and family allowances Old-age and survivors’ insurance (AHV), disability insurance (IV) and income compensation (EO) take 10.6% of all pay, 5.3% from the employer and 5.3% from the employee, with no ceiling. Unemployment insurance (ALV) adds 1.1% each on pay up to CHF 148,200 a year, and nothing above it since the solidarity contribution ended in 2023. Compensation offices also charge employers an administration fee. Family allowances are funded by employers through a cantonal family allowance fund, at 1.025% to 2.75% of pay depending on the fund; only in Valais do employees contribute too. The federal minimums are CHF 215 a month for each child and CHF 268 for each child in education, and cantons can set more. #### BVG pension and accident insurance Employees earning more than CHF 22,680 a year from one employer must be insured in a pension fund under the BVG. The coordinated salary is pay between the CHF 26,460 coordination deduction and CHF 90,720, at least CHF 3,780, and the minimum age credits on it are 7% from 25 to 34, 10% from 35 to 44, 15% from 45 to 54 and 18% from 55 to 65. The employer pays at least half, and many plans insure more than the legal minimum. Every employee must be insured against occupational accidents, at the employer’s cost, and those working at least eight hours a week against non-occupational accidents too, usually paid by the employee. Premiums depend on the insurer and the risk class and apply to pay up to CHF 148,200 a year. #### Source tax for foreign employees Foreign employees without a C settlement permit who live in Switzerland are taxed at source, unless they are married to a Swiss citizen or a C permit holder. The employer deducts the tax from gross pay at the tariff of the employee’s canton, remits it to the cantonal tax office and keeps a collection fee of 1% to 2% of the tax. Swiss citizens and C permit holders file their own returns, and nothing is withheld from their pay. Employees taxed at source with gross employment income of CHF 120,000 or more a year are also assessed in the ordinary way and must file a full tax return. Others can ask for an ordinary assessment by 31 March of the following year. #### What a Swiss employee actually costs For an employee aged 35 to 44 in the canton of Zurich earning CHF 9,000 a month, the employer pays CHF 477 of AHV/IV/EO, CHF 99 of unemployment insurance, CHF 92.25 to the family allowance fund and CHF 267.75 as the minimum BVG pension share: CHF 936, a monthly cost of CHF 9,936, or 10.4% on top of salary, before accident insurance and fund fees. The employee pays CHF 477 of AHV/IV/EO, CHF 99 of unemployment insurance and CHF 267.75 of pension, CHF 843.75 in all, and receives CHF 8,156.25 before income tax and non-occupational accident cover. Salaries are paid at the end of each month unless agreed otherwise, and a 13th salary is common but not required by law. #### Holidays, sick pay, notice and parental leave Employees are entitled to at least four weeks of paid holiday a year, five until they turn 20. If they cannot work through illness or accident after three months of employment, the employer pays their salary for at least three weeks in the first year of service and longer after that, unless an arrangement at least as good, usually daily sickness allowance insurance, is agreed in writing. Probation is one month unless agreed otherwise, up to three, with seven days’ notice. After it, notice is one month in the first year of service, two months in years two to nine and three months after that, ending at the end of a month. Mothers receive 80% of earnings, up to CHF 220 a day, for 14 weeks after the birth, and the other parent two weeks within six months, both paid through the EO. ## Swiss payroll contributions, 2026 | Item | Employer | Employee | Applies to | | --- | --- | --- | --- | | AHV/IV/EO | 5.3% | 5.3% | All pay, no ceiling | | Unemployment insurance (ALV) | 1.1% | 1.1% | Pay up to CHF 148,200 a year | | BVG pension age credits | At least half | The rest | 7% to 18% of pay between CHF 26,460 and CHF 90,720 | | Family allowances (FAK) | 1.025% to 2.75% | — | Set by each cantonal fund; employees pay only in Valais | | Occupational accident insurance | Insurer’s rate | — | Pay up to CHF 148,200 a year | | Non-occupational accident insurance | — | Insurer’s rate | Employees working 8 hours a week or more | | Source tax | — | Cantonal tariff | Foreign employees without a C permit | | Contribution payments | By the 10th | — | After each month, or each quarter up to CHF 200,000 of payroll | | Late payment | 5% a year | — | Default interest on AHV contributions | ### BVG pension: 2026 thresholds and minimum age credits | Item | Amount | | --- | --- | | Entry threshold | CHF 22,680 a year | | Coordination deduction | CHF 26,460 | | Maximum insured salary | CHF 90,720 | | Coordinated salary | CHF 3,780 to CHF 64,260 | | Age credit, ages 25 to 34 | 7% | | Age credit, ages 35 to 44 | 10% | | Age credit, ages 45 to 54 | 15% | | Age credit, ages 55 to 65 | 18% | | BVG minimum interest rate | 1.25% | ### Gross to net and employer cost in Switzerland, 2026 | Monthly gross | Employee deductions | Net before tax | Employer contributions | Total monthly cost | | --- | --- | --- | --- | --- | | CHF 6,000 | CHF 573.75 | CHF 5,426.25 | CHF 635.25 | CHF 6,635.25 | | CHF 9,000 | CHF 843.75 | CHF 8,156.25 | CHF 936.00 | CHF 9,936.00 | | CHF 15,000 | CHF 1,198.60 | CHF 13,801.40 | CHF 1,352.35 | CHF 16,352.35 | The gross-to-net table assumes twelve monthly salaries, an employee aged 35 to 44 in the canton of Zurich and the legal minimum BVG pension shared equally. Employee deductions are AHV/IV/EO, unemployment insurance and pension, before income tax and accident insurance. These are TopSource calculations from the verified rates. Rates, thresholds and amounts shown were verified on 9 October 2026 against the AHV/IV leaflets on contributions (2.01 and 2.08) and on maternity and paternity benefits (6.02 and 6.04), the Federal Social Insurance Office’s 2026 contribution table, BVG figures and family allowance rules, the Federal Act on Direct Federal Taxation and the Federal Tax Administration’s source tax circular, the Code of Obligations and the Labour Act. This page is general information, not tax or legal advice. [Get a Custom Payroll Quote](https://topsourceworldwide.com/contact-us/) ## How our Swiss payroll service works 1. Map your setup We confirm your registrations with the AHV compensation office, the family allowance fund, your pension fund and accident insurer, and the cantonal tax office for source tax, plus the contract terms that set pay, notice and benefits. 2. Migrate or onboard New hires are registered with the compensation office and the pension fund from their first salary, and foreign employees are set up for source tax with the right canton and tariff. Year-to-date pay, holiday balances and pension data are carried across. 3. Run and review Each month you receive a payroll report for approval before anything is paid: gross to net per employee and every AHV, unemployment insurance, pension, accident insurance and source tax line, with variances explained. Nothing is paid until you approve it. 4. File and pay We pay salaries, issue payslips, pay contributions on account by the 10th, remit source tax to each canton and file the annual salary declaration by 30 January, with year-end salary certificates for every employee. 5. Stay current The 13th AHV pension is paid for the first time in December 2026, and its funding through a VAT increase goes to a national vote on 29 November 2026. We apply each change as it takes effect and re-verify the figures on this page. ## Why Choose TopSource for Global Payroll in Switzerland TopSource for payroll, Employer of Record or any other of our services represents a simpler, more reliable and transparent option. If you would rather not employ staff in Switzerland directly, our [Employer of Record in Switzerland](https://topsourceworldwide.com/employer-of-record/switzerland/) can employ them on your behalf. We don’t hide fees or sneak price increases. We run Swiss payroll in-house and file under your own compensation office, pension fund and cantonal tax registrations rather than a bureau’s, so the same team that remits your contributions answers your calls. You get a named account manager, one consolidated monthly invoice covering salaries, contributions and fees, and one live Portico view of Switzerland beside every other country we run for you. Portico syncs with your time-tracking, leave and HR systems via API – set up by our onboarding team, not left to yours. GDPR, SOC 2 and ISO 27001 certified. [Global Payroll](https://topsourceworldwide.com/global-payroll/) [Get Started](https://topsourceworldwide.com/contact-us/) ## Other services Accelerating your growth in Switzerland and beyond #### TopSource goes far beyond payroll, acting as your end-to-end partner in global workforce management. From Employer of Record (EOR) services and seamless entity setup to localized accountancy and fractional HR support, we cover every aspect of international employment. ### Global Employer of Record (EOR) services With our Global EOR services, you can hire talent in any country without establishing a legal entity. We handle employment contracts, payroll, benefits, and compliance on your behalf, enabling fast, risk-free global expansion. ### Actionable HR Advisory On demand access to our fractional and regional HR professionals who understand local laws, cultures, and best practices. Bespoke talent intelligence including salary, business and talent market benchmarking. ### Global entity management Our global entity management team helps you establish and maintain your corporate entities worldwide. We ensure full compliance with local laws and regulations, streamline administrative processes, and minimize risk — so you can focus on growing your business. ### Accounting We offer comprehensive accounting solutions tailored to meet your international needs. From bookkeeping and financial reporting to tax filings and audits, our services help you maintain transparency, accuracy, and compliance in every jurisdiction. ## Meet our experts for Switzerland Whether you’re entering the market or scaling operations, our specialists provide the insight and guidance you need to succeed in one of the world’s most dynamic and regulated employment landscapes. With TopSource, you’re backed by real experts, every step of the way. [Our People](https://topsourceworldwide.com/our-people/) ## Beyond a payroll service **A globalization accelerator** A payroll platform for your employees is just the beginning. We are constantly evaluating your entire organisation to identify compliance issues and ways to accelerate your global growth. - [Payroll platform](#) - [Audit](#) - [Intelligence](#) - [Advisory](#) ##### Payroll platform ###### Global payroll simplified Your intuitive hub for paying global teams. Simple, powerful, and designed to scale with you — no complexity, just clarity. ##### Audit ###### Eliminate barriers to growth Avoid compliance issues across your global workforce and uncover opportunities to improve profitability. On a quarterly basis we’ll help you audit your global talent strategy to ensure it aligns with your business goals. ##### Intelligence ###### Build a data-driven talent strategy Grow confidently and profitably with access to the latest TopSource insights & data on hiring markets, salary benchmarking & benefits. ##### Advisory ###### Expert guidance that turns complexity into clarity. Whether you’re managing a global acquisition or entering a new market, you get clear guidance to navigate complex decisions, avoid delays, and accelerate your global expansion. ## Switzerland payroll FAQs ### What are employer payroll contributions in Switzerland in 2026? Employers pay 5.3% AHV/IV/EO on all pay, 1.1% unemployment insurance up to CHF 148,200 a year, a cantonal family allowance contribution of 1.025% to 2.75%, at least half of the BVG pension credits and the occupational accident premium. ### Is income tax withheld from salaries in Switzerland? Only for employees taxed at source, mainly foreign employees without a C permit: the employer deducts cantonal source tax from each salary. Swiss citizens and C permit holders pay their own income tax after filing a return, so nothing is withheld. ### How does the BVG pension work in Switzerland? Employees earning over CHF 22,680 a year join a pension fund. Minimum age credits of 7%, 10%, 15% or 18% apply to the coordinated salary between CHF 26,460 and CHF 90,720, and the employer pays at least half. ### Will Swiss payroll contributions rise to pay for the 13th AHV pension? Not for now. In June 2026 Parliament chose to fund it with a VAT increase from 2028 and rejected higher salary contributions. The VAT increase goes to a national vote on 29 November 2026, and the 13th pension is first paid in December 2026. ### When are AHV contributions due in Switzerland? Contributions on account are paid by the 10th after each month, or after each quarter if annual payroll is CHF 200,000 or less, and the annual salary declaration is due by 30 January. Late payments carry 5% annual default interest. ### How much does it cost to employ someone in Switzerland? An employee aged 35 to 44 in Zurich on CHF 9,000 a month costs CHF 9,936 a month in statutory contributions, 10.4% on top of salary, before accident insurance. Tell us the role, canton and salary and we’ll send the full cost within one business day. ### Is there a minimum wage in Switzerland? There is no national minimum wage. A few cantons set one: Geneva’s is the highest, at CHF 24.59 an hour in 2026. Collective labour agreements also set minimum pay in many sectors. ### What notice period applies in Switzerland? Under the Code of Obligations, one month in the first year of service, two months in years two to nine and three months after that, ending at the end of a month. During probation, which lasts one to three months, notice is seven days. ### How long is maternity leave in Switzerland? 14 weeks after the birth, paid through the EO at 80% of average earnings, up to CHF 220 a day. The other parent receives two weeks, to be taken within six months of the birth, on the same terms. ### Can a foreign company run payroll in Switzerland without an entity? Running Swiss payroll means registering with an AHV compensation office, a pension fund and an accident insurer, which in practice is done through a Swiss company or branch. TopSource can run payroll for your Swiss entity or employ your team through our Employer of Record service. [Couldn’t find what you were looking for?](/contact-us/) ## Looking at other markets too? We help organizations employ and pay teams in 164 countries. 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Tögrög](https://topsourceworldwide.com/global-payroll/mongolia/) [Montenegro Capital: Podgorica Currency: Euro](https://topsourceworldwide.com/global-payroll/montenegro/) [Morocco Capital: Rabat Currency: Moroccan Dirham](https://topsourceworldwide.com/global-payroll/morocco/) [Mozambique Capital: Maputo Currency: Mozambique metical](https://topsourceworldwide.com/global-payroll/mozambique/) [Namibia Capital: Windhoek Currency: Namibian Dollar](https://topsourceworldwide.com/global-payroll/namibia/) [Nepal Capital: Kathmandu Currency: Rupee](https://topsourceworldwide.com/global-payroll/nepal/) [New Zealand Capital: Wellington Currency: New Zealand Dollar](https://topsourceworldwide.com/global-payroll/new-zealand/) [Nicaragua Capital: Managua Currency: Nicaraguan córdoba](https://topsourceworldwide.com/global-payroll/nicaragua/) [Nigeria Capital: Abuja Currency: Nigerian Naira](https://topsourceworldwide.com/global-payroll/nigeria/) [Norway Capital: Oslo Currency: Norwegian krone](https://topsourceworldwide.com/global-payroll/norway/) [Oman Capital: Muscat Currency: Rial](https://topsourceworldwide.com/global-payroll/oman/) [Pakistan Capital: Islamabad Currency: Pakistani Rupee](https://topsourceworldwide.com/global-payroll/pakistan/) [Panama Capital: Panama City Currency: Balboa (PAB) and United States dollar (USD)](https://topsourceworldwide.com/global-payroll/panama/) [Papua New Guinea Capital: Port Moresby Currency: Papua New Guinean Kina](https://topsourceworldwide.com/global-payroll/papua-new-guinea/) [Paraguay Capital: Asunción Currency: Paraguayan guaraní](https://topsourceworldwide.com/global-payroll/paraguay/) [Peru Capital: Lima Currency: Peruvian sol](https://topsourceworldwide.com/global-payroll/peru/) [Philippines Capital: Manila Currency: Peso](https://topsourceworldwide.com/global-payroll/philippines/) [Portugal Capital: Lisbon Currency: Euro](https://topsourceworldwide.com/global-payroll/portugal/) [Puerto Rico Capital: San Juan Currency: United States dollar](https://topsourceworldwide.com/global-payroll/puerto-rico/) [Qatar Capital: Doha Currency: Riyal](https://topsourceworldwide.com/global-payroll/qatar/) [Romania Capital: Bucharest Currency: Romanian Leu](https://topsourceworldwide.com/global-payroll/romania/) [Rwanda Capital: Kigali Currency: Rwandan franc](https://topsourceworldwide.com/global-payroll/rwanda/) [Saint Kitts & Nevis Capital: Basseterre Currency: East Caribbean dollar](https://topsourceworldwide.com/global-payroll/saint-kitts-nevis/) [Saint Lucia Capital: Castries Currency: East Caribbean dollar](https://topsourceworldwide.com/global-payroll/saint-lucia/) [Saint Maarten Capital: Philipsburg Currency: Caribbean guilder (Cg)](https://topsourceworldwide.com/global-payroll/st-maarten/) [Saint Vincent & the Grenadines Capital: Kingstown Currency: East Caribbean dollar](https://topsourceworldwide.com/global-payroll/saint-vincent-the-grenadines/) [Saipan Capital: Capitol Hill Currency: U.S. Dollar](https://topsourceworldwide.com/global-payroll/saipan/) [San Marino Capital: City of San Marino Currency: Euro](https://topsourceworldwide.com/global-payroll/san-marino/) [Saudi Arabia Capital: Riyadh Currency: Riyal](https://topsourceworldwide.com/global-payroll/saudi-arabia/) [Senegal Capital: Dakar Currency: West African CFA franc](https://topsourceworldwide.com/global-payroll/senegal/) [Serbia Capital: Belgrade Currency: Serbian dinar](https://topsourceworldwide.com/global-payroll/serbia/) [Seychelles Capital: Victoria Currency: Seychellois Rupee](https://topsourceworldwide.com/global-payroll/seychelles/) [Slovakia Capital: Bratislava Currency: Euro](https://topsourceworldwide.com/global-payroll/slovakia/) [Slovenia Capital: Ljubljana Currency: Euro](https://topsourceworldwide.com/global-payroll/slovenia/) [Solomon Island Capital: Honiara Currency: Solomon Islands Dollar](https://topsourceworldwide.com/global-payroll/solomon-island/) [South Korea Capital: Seoul Currency: Won](https://topsourceworldwide.com/global-payroll/south-korea/) [South Sudan Capital: Juba Currency: South Sudanese Pound](https://topsourceworldwide.com/global-payroll/south-sudan/) [Sri Lanka Capital: Colombo Currency: Sri Lankan Rupee](https://topsourceworldwide.com/global-payroll/sri-lanka/) [Sudan Capital: Khartoum Currency: Sudanese Pound](https://topsourceworldwide.com/global-payroll/sudan/) [Sweden Capital: Stockholm Currency: Swedish krona](https://topsourceworldwide.com/global-payroll/sweden/) [Taiwan Capital: Taipei Currency: Dollar](https://topsourceworldwide.com/global-payroll/taiwan/) [Thailand Capital: Bangkok Currency: Thai Baht](https://topsourceworldwide.com/global-payroll/thailand/) [Trinidad & Tobago Capital: Port of Spain Currency: Trinidad and Tobago dollar](https://topsourceworldwide.com/global-payroll/trinidad-tobago/) [Tunisia Capital: Tunis Currency: Tunisian Dinar](https://topsourceworldwide.com/global-payroll/tunisia/) [Uganda Capital: Kampala Currency: Ugandan Shilling](https://topsourceworldwide.com/global-payroll/uganda/) [US Virgin Island Capital: Charlotte Amalie Currency: Dollar](https://topsourceworldwide.com/global-payroll/us-virgin-island/) [Venezuela Capital: Caracas Currency: Venezuelan bolívar](https://topsourceworldwide.com/global-payroll/venezuela/) [Zambia Capital: Lusaka Currency: Zambian Kwacha](https://topsourceworldwide.com/global-payroll/zambia/) [Zimbabwe Capital: Harare Currency: Zimbabwe Gold (ZiG)](https://topsourceworldwide.com/global-payroll/zimbabwe/) Load more