The Swiss paycheck: guide to withholdings and the rest net (cross-border guide)

Context

In a nutshell

The Swiss paycheck follows a precise logic, which every employer is required to respect. The gross salary is subject to different deductions, which vary depending on the needs of the employee and the employer. The net salary is what you really earn, after having paid the mandatory and optional deductions.

Key facts

• What: Swiss Payroll
• When: 2026
• Where: Switzerland
• Who: Employees and employers
• Amount: variable

The Swiss paycheck is mandatory documentation that every employer is required to provide to their employees. It contains the basic data relating to the pay period, gross salary and deductions made.

The Fundamental Principles

The Swiss paycheck is regulated by the Federal Civil Code (CCF), which sets out the minimum requirements for salary documentation. The gross salary is what the employer has to pay the employee, while the net salary is what the employee earns after incurring deductions.

Mandatory deductions

Mandatory deductions are those that the employer is required to make on behalf of the employee. These deductions are:

• Social security contribution: 3.4% of the gross salary, intended for the social security fund of the canton of Bern.
• Pension contribution: 2.5% of the gross salary, intended for the pension fund of the canton of Geneva.
• Healthcare contribution: 1.2%

Operational details

The Swiss paycheck: guide to withholdings and the rest net

The Swiss paycheck contains several deductions that are made on the gross salary. These deductions are:

• AVS/AI/IPG: basic social insurance
• AD: unemployment insurance
• LAINF: accident insurance
• LPP: occupational pension

Each withholding has a specific amount that is calculated based on the employee's gross salary.

Fixed and variable withholdings

Most deductions are fixed and calculated on the basis of gross salary. However, some withholdings vary based on factors such as the employee's age, gross salary, and length of employment contract. For example, withholding for unemployment insurance (AD) ranges from 2.2% to 3.7% of gross salary, depending on the employee's age.

Concrete examples

Suppose you have an employee who earns CHF 5,000 per month. The withholding for unemployment insurance (AD) would be 3% of the gross salary, so CHF 150 per month. The deduction for accident insurance (LAINF) would be 1.2% of the gross salary, so CHF 60 per month.

Cantons and cities in Switzerland

Payroll legislation varies slightly from canton to canton and city to city. For example, in the canton of Zurich, the deduction for unemployment insurance (AD) is 3.3% of the gross salary, while in the canton of Geneva it is 3.5%. In Bern, the

Useful planning tools

To estimate your pension strategy, use the pension planner and the pillar 3 simulator.

Key points

The Swiss paycheck: guide to withholdings and the rest net

To calculate the net salary, it is necessary to subtract the deductions made from the Swiss paycheck. Your net salary is what you actually earn. The following table shows the deductions made in 2026:

| Withholding | Amount | % of gross salary | | --- | --- | --- | | AVS/AI/IPG | 10.6% | 5.3% employee, 5.3% employer | | AD | 2.2% | 1.1% employee, 1.1% employer | | LAINF | 0.7-1.5% | variable | | LPP | 7-18% | variable |

Your net salary is what you actually earn. To calculate it, it is necessary to subtract the deductions made from the Swiss paycheck.

Fixed withholdings

Fixed deductions are those that do not vary depending on the gross salary. The main fixed deductions are:

• AVS/AI/IPG (10.6%): This deduction covers the contribution to basic Swiss insurance (AVS), disability insurance (AI) and accident insurance (IPG). The contribution is divided equally between the employee and the employer.
• AD (2.2%): This deduction covers the contribution to unemployment insurance (AD). The contribution is divided equally between the employee and the employer.

Variable deductions

Variable deductions are those that vary depending on the gross salary. The main variable deductions are:

• LAINF (0.7-1.5%): This withholding covers the disability insurance contribution (LAINF). Contribution varies from

First day as a cross-border worker? Our practical guide walks you from cantonal registration to your first paycheck.

Source: moneymag.ch