Employee Cost Calculator
Hiring costs go beyond salary. Estimate the cost of your next hire with this calculator. Simply enter their location and salary information in to this handy tool to see what will be spent in employment costs each month.
Employment Cost Calculator
*Indicative figures only and not definitive legal advice. Local regulations change frequently. Consult an expertSwitzerland
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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.
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.
Beyond a payroll serviceA globalization accelerator
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.
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Build a data-driven talent strategy
Grow confidently and profitably with access to the latest TopSource insights & data on hiring markets, salary benchmarking & benefits.
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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.
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We help organizations with employ and pay teams in over 180 countries.
Switzerland payroll: frequently asked questions
It means a provider runs your Swiss payroll end to end: gross-to-net calculation, source tax (Quellensteuer) where applicable, and the mandatory social insurances (AHV/IV/EO, ALV, BVG pension and UVG accident cover), plus monthly payslips and year-end salary certificates (Lohnausweis). The provider also handles registration and reporting to the relevant compensation office (Ausgleichskasse), pension fund, accident insurer and the cantonal tax authority. Because rates and filing procedures differ by canton, a key part of the service is applying the correct cantonal source-tax tariff and family-allowance rate for each employee.
Foreign employees without a C settlement permit (typically B and L permit holders) are taxed at source (Quellensteuer): the employer deducts income tax directly from monthly gross salary at a cantonal tariff and remits it to the canton, so most of these workers file no ordinary return. Swiss nationals and C-permit holders instead self-assess through the annual ordinary tax return. Since the 2021 withholding-tax reform, source-taxed employees earning above CHF 120,000 gross per year (2026) are subject to mandatory subsequent ordinary assessment, and rates and practical rules still vary meaningfully by canton.
The core scheme is AHV/IV/EO (old-age, disability and loss-of-earnings) at a combined 10.6% of gross salary with no ceiling for 2026, split equally so employer and employee each pay 5.3%. Unemployment insurance (ALV) adds 2.2% (1.1% each side) up to CHF 148,200, with a 1.0% solidarity surcharge (0.5% each) above that. On top of these come the BVG occupational pension (Pillar 2, age-banded credits, employer paying at least half) and mandatory UVG accident insurance, where the employer funds occupational cover and typically the employee funds non-occupational cover.
BVG is mandatory once an employee earns above the entry threshold of CHF 22,680 per year (2026). Contributions apply to the coordinated salary, calculated after a coordination deduction of CHF 26,460 and capped at a maximum coordinated salary of CHF 64,260 (mandatory BVG salary limit CHF 90,720). Statutory retirement credits are age-banded as a percentage of the coordinated salary: 7% at ages 25-34, 10% at 35-44, 15% at 45-54 and 18% from 55, and the employer must fund at least half of the total pension cost.
On top of gross salary, the employer pays roughly 5.3% AHV/IV/EO, 1.1% ALV (plus 0.5% solidarity above CHF 148,200), the employer BVG share (at least half of the age-banded pension credits), and the occupational UVG accident premium (often around 0.1-1% depending on risk class). Employers also owe a family-allowance (FAK) contribution that is employer-funded and varies by canton, commonly in the 1.5-3.5% range. Total employer on-costs typically land near 15-20% of gross pay, and the exact figure depends heavily on the canton and the chosen pension fund.
Running payroll on your own requires registration with a cantonal compensation office (Ausgleichskasse), a BVG pension fund and a UVG accident insurer, which in practice means a Swiss legal entity or at least a registered employer presence. An Employer of Record (EOR) legally employs your staff through its own Swiss entity, so it handles AHV/IV/EO, ALV, BVG, UVG, source tax and cantonal filings on your behalf and lets you hire without incorporating. This is a common route for testing the Swiss market or employing a small team, while a payroll-outsourcing service suits companies that already have a Swiss entity.