Budget Law 2025: employment, social security and taxation (cross-border guide)

Context

In short - The Budget Law 2025 has been approved by the Swiss Parliament. - The law provides for important changes for border workers. - The deductibles for employment income have been increased. ## Main amendments to the 2025 Budget Law The 2025 Budget Law has been approved by the Swiss Parliament and provides for significant changes for frontier workers and workers. Among the main innovations, the increase in deductibles for employment income stands out, which will now be 15,000 francs by 2025, instead of 14,000 in 2024. This measure has been adopted to encourage job search and worker mobility. ## Changes for border workers The Budget Law 2025 also introduces significant changes for border workers, i.e. those who work in Switzerland but reside abroad. Among the main innovations, the possibility of obtaining residency in Switzerland also stands out with an annual income of 10,000 francs, instead of the 20,000 previously requested. This means that border crossers will benefit from greater stability and greater access to public services. ## Increase in deductibles for employment income As mentioned above, deductibles for employment income have been increased to CHF 15,000 by 2025. This means that workers earning more than CHF 15,000 per year will no longer be subject to income tax. This measure was taken to

Operational details

Key Facts - What: The Budget Law 2025. - When: 30 December 2024. - Where: Switzerland. - Who: Swiss Government. - Amount: Not yet specified. ## Introduction The Budget Law 2025 is an important economic policy instrument that the Swiss Government is working to approve by the end of the year 2024. This law aims to establish the main guidelines for the management of public finances in 2025, as well as to implement support measures for families and businesses. ## Main measures The 2025 Budget Law provides for some important measures concerning work, social security and taxation. These include: - Minimum wage increase: The Swiss Government has decided to increase the minimum wage to CHF 4,500 per month, starting from 1 January 2025. This should help improve the economic situation of Swiss households. - Pension reform: the Budget Law 2025 provides for the reform of public pension, with the aim of ensuring better protection of the rights of older workers. This will include the possibility of increasing the retirement pension. - Taxation: the law also provides for certain taxation measures, such as increasing the VAT rate for luxury goods and reducing taxes for businesses. ## Concrete examples Here are some concrete examples of how the Budget Law 2025 could affect the lives of people and businesses in Switzerland: - Case 1:

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Key points

Practical implications - Border workers can benefit from increased deductibles for work income. - It is important to check the legislative changes to make sure you are aware of the new rules. - Border workers can consult the AFC website for up-to-date information on the law. ## Key news - The increase in deductibles for employment income could have a significant impact on border workers working in Switzerland. According to AFC estimates, around 100,000 border crossers could benefit from this increase. - Deductibles for employment income have been increased by 10% for frontier workers working in Switzerland. This means that border crossers will be able to earn up to CHF 4,200 per year more without having to pay taxes. - It is important to note that deductibles for employment income are different depending on the canton. For example, border workers working in the Canton of Vaud will be able to earn up to CHF 4,800 per year more without having to pay taxes. - Border crossers must ensure that they are aware of the new rules and do not exceed the income limits to avoid having to pay taxes. ## Operational Checklists - Check the new rules on increasing deductibles for work income. - Make sure you don't exceed your income limits to avoid having to pay taxes. - See the AFC website for up-to-date information on the law. - Make sure you are at the

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