Find answers to the most common questions about salaries in Switzerland
Net salary is calculated by deducting mandatory social contributions (AVS/AI/APG ~5.3%, AC ~1.1%, LAA, LPP), withholding tax (depending on canton), and other deductions like health insurance from gross salary. Our calculator takes all these elements into account to give you an accurate estimate.
Tax rates vary considerably from canton to canton. For example, Zug and Schwyz have among the lowest tax rates, while Geneva and Neuchâtel have higher rates. These differences can represent several thousand francs per year on your net salary. Our cantonal comparison tool allows you to see these differences easily.
AVS (Old Age and Survivors Insurance), AI (Disability Insurance) and APG (Loss of Earnings Allowance) are mandatory social insurances. The combined contribution rate is approximately 5.3% of your gross salary, shared equally between employee and employer. You therefore pay approximately 5.3% of your gross salary.
Yes, basic health insurance (LAMal) is mandatory in Switzerland but is NOT automatically deducted from your salary. You must subscribe to your own insurance and pay the premiums directly (approximately 300-500 CHF per month depending on age, canton and deductible chosen). This is an important expense to budget for in addition.
LPP is the second pillar of the Swiss pension system, a mandatory pension fund for employees earning more than 22,050 CHF per year. Contributions vary according to age (approximately 7-18% of coordinated salary) and are shared between employee and employer. This money is intended for your retirement.
Family allowances are financial benefits paid to parents for each child. Amounts vary by canton, generally between 200-300 CHF per month per child. These allowances are paid in addition to your salary and are not taxable.
The type of permit influences the taxation method: B and L permits are generally subject to withholding tax (direct deduction from salary), while C permits declare their taxes annually like Swiss citizens. Rates may vary slightly depending on status, but social contributions remain the same.
In Switzerland, salaries in job offers are ALWAYS indicated as gross annual. If you see "80,000 CHF", it's the gross annual salary. You must then deduct approximately 15-25% for social contributions and taxes (depending on canton) to get the net. Use our calculator to get an accurate estimate!