How we calculate Swiss net pay

The calculator follows the monthly payslip of an employee who lives and works in Switzerland for the whole year with one employer, on the same monthly pay and, if chosen, a 13th salary in December. It is built on the Federal Tax Administration's withholding tariff files and tariff basis, circular 45 on withholding tax and the key figures of the Federal Social Insurance Office — see data sources.

Social contributions

Old-age, disability and income-loss insurance (AHV/IV/EO) cost 5.3% of gross pay together, with no ceiling. Unemployment insurance costs 1.1% up to CHF 148,200 of annual pay; we apply the ceiling over the year, so a 13th salary counts towards it. For non-occupational accident insurance we use 1.0%, as the Federal Tax Administration does in its tariff basis; the real rate depends on the insurer and can be changed. Each deduction is rounded to 5 centimes.

Pension fund

Unless you enter your own rate we use the legal minimum: from CHF 22,680 of annual pay, pay less CHF 26,460 is insured, at least CHF 3,780 and at most CHF 64,260. Age credits are 7, 10, 15 and 18% from ages 25, 35, 45 and 55, paid half by the employee and half by the employer and deducted in twelfths. Most pension funds charge more; enter your rate if so.

Withholding tax

Without a C settlement permit, income tax is withheld from pay. We use the files the Federal Tax Administration publishes for every canton for import into payroll software: tariff A for single people, B for married couples with one income, C for couples with two incomes and H for single parents, by number of children and with or without church tax. The rate is the one for the tariff step reached; between two steps the lower one applies. The amount is truncated to the centime and then rounded commercially to 5 centimes, which reproduces the examples in the FAQ to circular 45 exactly. Any cantonal minimum tax is applied.

Monthly and annual models

In 21 cantons the month's gross pay sets the rate (monthly model): in December the 13th salary is added and the rate is higher. Fribourg, Geneva, Ticino, Vaud and Valais use the annual model: annual income including the 13th salary, converted to a monthly figure, sets one rate for every payment.

Ordinary taxation

Swiss citizens and C-permit holders are taxed by ordinary assessment: the employer withholds nothing, and the bill follows the assessment and depends on the municipality, deductions and wealth. The calculator then shows net pay after social contributions and, as a guide, the tax under the withholding tariff, which reflects the average of the canton's municipalities. People taxed at source who earn more than CHF 120,000 a year are reassessed under ordinary taxation.

Employer cost

Employers pay the same AHV/IV/EO and unemployment contributions as the employee and at least the same BVG contributions. Family allowance funds, occupational accident insurance and administration fees vary by canton and insurer and are not included.

Tests

Not yet included

• Family and child allowances paid with the salary.
• Cross-border commuters (tariffs L to V, the special agreement with France), part-time work for several employers, joining or leaving during the year.
• Ordinary tax by municipality, sickness daily allowance insurance and the employer's other contributions.

Estimates only. Not tax, legal or financial advice.