What are the contribution rates in Switzerland?

Compulsory contributions payable by the employee include: AVS/AI/IPG at 5.3%, unemployment insurance (AD/AC) at 1.1% (up to CHF 148,200), LAINF insurance between 0.7% and 1.5% and occupational pension LPP, which varies from 7% to 18% depending on age, from 25 years.

How is double taxation avoided?

For border workers, double taxation is avoided through the tax credit in Italy. Taxes paid at source in Switzerland, in accordance with the provisions of the new tax agreement, are deducted from taxes due in Italy, after entering the correct data in the EC framework of the 730 tax return.

What changes with the new 2024 agreement?

The new tax agreement, in force from 1 January 2024, introduces an exclusive taxation in Switzerland for new frontier workers, with a deductible of 10,000 euros. The old frontier workers, defined as such before 17 July 2023, maintain a transitional regime until 2033 with a deductible of 7,500 euros.

Living in Monno and working in Graubünden as a border worker (cross-border guide)

Di Marco Ferrari · Published on 21 August 2026

Practical guide for those living in Monno and working in Switzerland: taxation, new agreement, contributions and income management between Italy and the Canton of Graubünden.

Context

In a nutshell

New Frontier Agreement in force from 1 January 2024.
Exclusive taxation in Switzerland for new frontier workers.
Tax credit in Italy to avoid double taxation.
Deductible of 10,000 euros for new frontier workers.

Key facts

What: New Frontier Agreement
When: 1 January 2024
Where: Italy and Switzerland
Who: AFC and Revenue Agency
Amount: 10,000 euros deductible

Moving to Monno for those who choose to work in the Canton of Graubünden is a life choice that requires a clear understanding of the current regulatory framework. From 1 January 2024, the new tax agreement signed on 23 December 2020 and ratified by Law 83 of 13 June 2023 is fully operational. This legislation defines the methods of taxation for frontier workers serving in Switzerland, ensuring that the tax is applied at source in the country of work. For workers, this means that income is taxed in Switzerland, while Italy avoids double taxation through the tax credit mechanism, which must be managed correctly through the EC framework of the 730 tax return.

The distinction between old and new frontier workers

The legislation provides for a fundamental distinction between workers already classified as frontier workers before 17 July 2023 and those who started the activity afterwards. The so-called 'old

Operational details

Working in the Canton of Grisons while residing in Monno involves managing a payslip that reflects the specificities of the Swiss social security system. Mandatory employee contributions include AVS, AI, and IPG at a rate of 5.3%. Added to this is the unemployment insurance contribution (AD/AC) of 1.1% up to a salary cap of 148,200 CHF. Accident insurance coverage (LAINF) varies between 0.7% and 1.5%, while the occupational pension plan (LPP) ranges from 7% to 18% depending on the age bracket, applied starting from age 25. It is essential for the worker to understand how these deductions reduce the gross salary to reach the net amount received.

Managing health insurance

A central aspect for cross-border commuters is the management of LAMal, the mandatory health insurance. Contrary to common belief, this is not a 'health tax', but an insurance system that allows cross-border commuters holding a G permit to exercise their right of option. The choice between the Swiss and Italian systems is a decision that significantly impacts the family budget. Deductibles for adults usually vary between 300 and 2500 CHF. It is advisable to carefully evaluate your personal situation before opting for one solution over the other. To delve deeper into topics related to social security and contributions, you can consult the guides on pension to better understand how the second pillar works. Financial planning must also take into account Italian IRPEF taxation, which includes brackets of 23% up to 28,000 euros, 35% between 28,001 and 50,000 euros, and 43% for the portion exceeding 50,000 euros. Coordination between payments made in Switzerland and reporting obligations in Italy is the key to maintaining the tax compliance required by the Revenue Agency and the MEF.

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Key points

For those deciding to embark on a career path from Monno to the Grisons, the bureaucratic procedure requires extreme precision. The first fundamental step is obtaining the G permit, the official document that authorizes work activity in Switzerland for residents of Italy. Without this permit, it is not possible to start an employment relationship. Subsequently, it is essential to constantly monitor official communications from SECO and SEM for any regulatory or procedural updates. Proper management of tax documentation, including the retention of pay slips and certification of taxes paid at source in Switzerland, is necessary for the annual tax return in Italy.

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Frequently Asked Questions

What are the contribution rates in Switzerland?: Compulsory contributions payable by the employee include: AVS/AI/IPG at 5.3%, unemployment insurance (AD/AC) at 1.1% (up to CHF 148,200), LAINF insurance between 0.7% and 1.5% and occupational pension LPP, which varies from 7% to 18% depending on age, from 25 years.
How is double taxation avoided?: For border workers, double taxation is avoided through the tax credit in Italy. Taxes paid at source in Switzerland, in accordance with the provisions of the new tax agreement, are deducted from taxes due in Italy, after entering the correct data in the EC framework of the 730 tax return.
What changes with the new 2024 agreement?: The new tax agreement, in force from 1 January 2024, introduces an exclusive taxation in Switzerland for new frontier workers, with a deductible of 10,000 euros. The old frontier workers, defined as such before 17 July 2023, maintain a transitional regime until 2033 with a deductible of 7,500 euros.