13th month salary for cross-border workers: how much you receive (cross-border guide)

Di Valerie Linc · Published on · Updated on

How to calculate the net 13th month salary for a cross-border worker with all Swiss and Italian deductions.

Contesto

TL;DR - 13th month salary common in Switzerland, not legally mandatory - Cross-border workers in Ticino often receive 13th month - 13th month taxed like regular salary in Switzerland - New cross-border workers must declare 13th month in Italy ## Key facts - 13th month: Common in Switzerland, not legally mandatory - Cross-border workers: In Canton Ticino, 13th month is standard practice - Tax deductions: Same as regular salary: AHV/AVS (5.3%), ALV/AC (1.1%), LAINF/LAA (0.7%), IJM (0.8%), LPP/BVG (7–18%) - Swiss withholding tax: Applied using the same cantonal tables as regular salary - New Bilateral Agreement: 2026 agreement includes 13th month in annual gross income for tax calculation - New frontalieri: Hired after 17 July 2023, must declare 13th month in Italian tax return - Old frontalieri: Exempt from Italian taxation, only pay Swiss withholding tax on 13th month - Franchigia deduction: €10,000 deduction for new cross-border workers in Italy In Switzerland the 13th month salary is very common but not legally mandatory under the Code of Obligations. Most collective labour agreements (CLA/GAV) and individual employment contracts include it, corresponding to 1/12 of the gross annual salary. For cross-border workers in Canton Ticino, the 13th month is standard practice in sectors like banking, pharma, manufacturing, and hospitality — with some employers in finance even offering a 14th month bonus.

Dettagli operativi

The 13th month undergoes the same social and tax deductions as regular monthly pay: AHV/AVS (5.3%), unemployment insurance ALV/AC (1.1%), occupational accident insurance LAINF/LAA (0.7%), daily sickness IJM (0.8%), and occupational pension LPP/BVG (age-dependent, 7–18%). Swiss withholding tax (imposta alla fonte) is also applied using the same cantonal tables. As a result, the net 13th month salary is roughly equivalent to your regular monthly net — there is no special reduced rate.

Punti chiave

For cross-border workers subject to the 2026 New Bilateral Agreement, the 13th month is included in the annual gross income used to calculate both Swiss withholding tax and Italian IRPEF. New frontalieri (hired after 17 July 2023) must declare the 13th month in their Italian tax return (Modello 730 or Redditi PF), where it contributes to the total taxable base after the €10,000 franchigia deduction. Old frontalieri are exempt from Italian taxation and only pay Swiss withholding tax on the 13th month.

Punti chiave

Payment timing varies by employer: most pay the 13th month as a lump sum in December, but some split it into two instalments (June and December) or distribute it monthly as a 8.33% supplement. When converting the 13th month from CHF to EUR, the exchange rate on the payment date applies — during December, the CHF/EUR rate can differ significantly from the annual average used for tax calculations. Using a service like Wise or Revolut instead of a traditional bank transfer can save 1–2% on the conversion.

Punti chiave

To calculate your net 13th month salary accurately, use the Frontaliere Ticino salary simulator: enter your gross monthly salary, select your personal situation (marital status, children, municipality), and the tool will show you the exact net amount after all Swiss deductions and, for new frontalieri, the estimated Italian IRPEF impact. The simulator uses official 2026 withholding tax tables from the Canton Ticino tax authority (DFE) and current AVS/LPP contribution rates from the Federal Social Insurance Office.

Punti chiave

[{"q":"When do you receive the thirteenth month's salary in Switzerland and how is it calculated?","a":"The thirteenth month in Switzerland is generally paid in December (or in two tranches, June and December in some cases). It is equivalent to 1/12 of the gross annual salary. For example, with a gross salary of CHF 5,000 per month, the thirteenth salary will be CHF 5,000 gross."},{"q":"How is the thirteenth month's salary taxed in Italy for Swiss cross-border commuters?","a":"The thirteenth month is taxed in the same tax year in which it is paid and must be included in the Italian tax return, potentially increasing the IRPEF tax base."},{"q":"What are the tax obligations for cross-border commuters after July 2023 with regard to the thirteenth month?","a":"The thirteenth month must be declared in Italy in the same tax year in which it is paid. Including it in the total income could cause the salary to slip into a higher IRPEF bracket, with a possible increase in the tax. It is advisable to set aside a part to cover any IRPEF adjustments in the following June/July."},{"q":"How are social contributions calculated on the thirteenth month in Ticino?","a":"The thirteenth month is subject to the same social deductions as ordinary monthly payments: AHV 5.3%, AC 1.1%, UVG 0.7%, IJM 0.8%, in addition to BVG contributions. The net is calculated by applying the same percentages to the gross salary of the thirteenth month, without benefits."},{"q":"Is it possible to receive the thirteenth month in two installments in Ticino?","a":"Yes, some employers in Ticino divide it into two tranches, usually in June and December. However, most disburse it in a lump sum in December together with the ordinary monthly payment. Check the collective bargaining agreement (CEA) or individual agreemen...

Frequently Asked Questions
When do you receive the thirteenth month's salary in Switzerland and how is it calculated?
The thirteenth month in Switzerland is generally paid in December (or in two tranches, June and December in some cases). It is equivalent to 1/12 of the gross annual salary. For example, with a gross salary of CHF 5,000 per month, the thirteenth salary will be CHF 5,000 gross.
How is the thirteenth month's salary taxed in Italy for Swiss cross-border commuters?
The thirteenth month is taxed in the same tax year in which it is paid and must be included in the Italian tax return, potentially increasing the IRPEF tax base.
What are the tax obligations for cross-border commuters after July 2023 with regard to the thirteenth month?
The thirteenth month must be declared in Italy in the same tax year in which it is paid. Including it in the total income could cause the salary to slip into a higher IRPEF bracket, with a possible increase in the tax. It is advisable to set aside a part to cover any IRPEF adjustments in the following June/July.
How are social contributions calculated on the thirteenth month in Ticino?
The thirteenth month is subject to the same social deductions as ordinary monthly payments: AHV 5.3%, AC 1.1%, UVG 0.7%, IJM 0.8%, in addition to BVG contributions. The net is calculated by applying the same percentages to the gross salary of the thirteenth month, without benefits.
Is it possible to receive the thirteenth month in two installments in Ticino?
Yes, some employers in Ticino divide it into two tranches, usually in June and December. However, most disburse it in a lump sum in December together with the ordinary monthly payment. Check the collective bargaining agreement (CEA) or individual agreement for confirmation.

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