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.
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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.
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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.
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*Indicative figures only and not definitive legal advice. Local regulations change frequently. Consult an expertSwitzerland
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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.
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.
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.
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.
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.
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.
How our Swiss payroll service works
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 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.
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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.
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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.
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Switzerland payroll FAQs
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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