payroll+ calculates employer and employee social security deductions in accordance with applicable law. By law, social security deductions must be calculated based on gross pay.
Employer Deductions:
- 5.30% AHV (Pillar 1, Old-Age and Survivors’ Insurance)
- 1.10% ALV (Unemployment Insurance)
- 0.30% AHV administrative fees (charged by the AHV to cover its processing costs)
- 1.30% FAK (The Family Allowance Fund must be paid by all employers by law)
- 1.60% KTG* (daily sickness benefit insurance starting on the 4th day or as specified in the collective bargaining agreement)
- SUVA Occupational Accident Insurance by Category (SUVA Office 0.40%, Skilled Trades 6.10%, Industrial and Service Occupations 1.40%)
- 1–5% employer-related costs (statutory absences, etc., depending on the contract)
Employee Deductions
- 5.30% AHV (1st Pillar, Old-Age and Survivors’ Insurance)
- 1.10% ALV (Unemployment Insurance)
- 1.60% KTG* (daily sickness benefit insurance starting on the 4th day or as specified in the collective bargaining agreement)
- SUVA Non-Occupational Accident Insurance by Category (SUVA Office 0.65%, Skilled Trades 2.96%, Manufacturing 1.23%, Services 1.23%)
AHV exemption of 2,500 per year
As a general rule, AHV/IV/EO and ALV contributions must be deducted from every payroll payment. This applies without exception to individuals who
- are employed in a private household (however, wages of up to 750 francs per year paid by employers to young people up to age 25 remain exempt from contributions; see section 6) or
- are paid by dance and theater producers, orchestras, music and audiovisual producers, radio and television, as well as schools in the arts. Outside of these industries, no fees need to be collected if
- the salary does not exceed CHF 2,500 per year, and
- the employee does not request that contributions be paid. AHV information sheet: https://www.ahv-iv.ch/p/2.04.d
If your invoice to the customer does not exceed CHF 2,500, you can fill out an AHV waiver form, and your customer may pay you this amount without any issues or AHV deductions, even if you do not have your own legal entity.
*A 1.60% deduction (3-day waiting period) is mandatory for our Freelancer OR and Temporary Staffing employment models; with our Smart Online Tool, you can choose between 0.60% (30-day waiting period) and 1.60% (3-day waiting period)