Social security
in Switzerland.

SALARY PAYMENT IN Swiss Franc (CHF)

CONTRACT LANGUAGES German / French / English

PAYROLL TAX 8.17% – 23.50%

PAYROLL CYCLE Monthly

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Switzerland

Social security in Switzerland– Overview

Switzerland has a close-knit network of different types of social insurance, which offer the persons living and working here, and their dependants, a broad protection against risks whose financial con-sequences could not be covered without an insurance.

The Swiss social security system is divided into five areas:

old-age, survivors’ and invalidity insurance (three-pillar system)
protection against the consequences of illness and accidents
income compensation allowances in case of service and in case of maternity
unemployment insurance
family allowances

These different types of insurance offer protection in the form of pensions, unemployment benefits and family allowances, as well as paying for costs incurred through illness and accidents.

What does the social security system in Switzerland cover?

There is no standardized national social security scheme in Switzerland. Social security is organized at both the federal and Cantonal levels. Swiss social insurance cover issues of old age, disability, death (survivors’ benefits), illness, parental leave, caring for a seriously ill child, accidents at work and occupational diseases, unemployment, as well as family allowances.

What are the mandatory contributions for employees to social security in Switzerland?

It is mandatory for employees to contribute around 5.30% to social security. As of 2022, the minimum employees’ contributions are:

4.5% to AHV/AVS
0.70% to IV/AI
0.25% to EO/AC

These rates cover old age, survivors, and disability insurance. Employees also must contribute to unemployment at a rate of 1.1% of their monthly salary.

What are the mandatory contributions for employers to social security in Switzerland?

Employers contribute equally to what an employee contributes to social security insurance for old age, disability, and survivor schemes. Employers also must contribute 1.1% to unemployment insurance, 1% to 3% to a family compensation fund and 0.17% to 13.5% to occupational accident insurance. Employers are expected to withhold these social security taxes from an employee’s salary.

How do mandatory contributions compare to the surrounding countries?

Employer mandatory contributions are relatively lower in Switzerland than in many of its surrounding countries.

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FAQs

How much do employers need to contribute to social security in Switzerland?

Employers need to contribute anywhere between 6.4% to 22% depending on the industry and collective agreements the type of employment falls under.

What situations does social security cover for employees in Switzerland?

Social security covers a range of issues experienced throughout the lifetime including old age, disability, unemployment, family allowances, death, parental leave, occupational accidents, illnesses and looking after ill children.

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