Salaries and the labor market in Vaud: sectors and levels (cross-border guide)

Context

In brief

• No federal minimum wage; some cantons provide for one.
• Maximum working hours: 45 or 50 hours per week.
• AVS/AI/IPG: 5.3% paid by the employee.
• Vacation: at least 4 weeks; 5 under 20.

Key facts

• Minimum wage → none at federal level; some cantons have their own threshold.
• Maximum working hours → 45 hours in industry, offices and retail; 50 in other sectors.
• AVS/AI/IPG → 5.3% for the employee; 10.6% total with the employer.
• AD/AC → 1.1% up to the annual maximum.
• LPP/BVG → 7%, 10%, 15% and 18% according to age brackets.
• LAMal/KVG → mandatory for residents; within 3 months of arrival.
• Maternity → 14 weeks at 80% through IPG.
• Termination → 1, 2 or 3 months depending on length of service.

The starting point for Vaud

In Switzerland there is no federal minimum wage: some cantons do, however, have their own threshold. For anyone looking for or changing jobs in the Canton of Vaud, this is the first check to make, before assigning a salary level applicable to everyone to a training course or a sector. There is no single national figure: the comparison starts with the potentially applicable cantonal rule, the contract and any relevant collective agreement.

Looking beyond the figure in the offer

The second concrete piece of information is working hours. The maximum limit is 45 hours per week in industry, offices and retail; in other sectors it reaches 50 hours. The difference affects how an offer is read because the same gross amount must be linked to the working time specified in the contract. The minimum vacation entitlement is four weeks, rising to five for anyone under 20. Notice periods are one, two or three months: one month in the first year, two from the second to the ninth and three from the tenth.

Contributions then come into play in relation to salary. AVS/AI/IPG amounts to 5.3% for the employee, while the total with the employer reaches 10.6%. AD/AC is 1.1% up to the annual maximum; LAINF/LAA ranges from 0.7% to 1.5% depending on the sector. For LPP/BVG on the coordinated salary, the rates indicated are 7% between 25 and 34, 10% between 35 and 44, 15% between 45 and 54 and 18% from age 55 up to reference age.

These items do not include LAMal/KVG. It is mandatory for residents and must be taken out within three months of arrival; it is private insurance with per-capita premiums, not a tax or a salary contribution. Premiums vary by canton and region, while premium reductions are a cantonal subsidy. To check the transition from gross to net, you can consult busta paga svizzera, without turning a health insurance premium into a salary deduction.

Operational details

Net pay also depends on taxes and housing

A salary comparison in Canton Vaud does not end with gross pay and payroll deductions. The cost of living also depends on the municipality, the LAMal premium and rent. Swiss taxation has three levels: direct federal tax, cantonal tax and municipal tax. Each canton has its own law and multiplier; the municipality applies a multiplier to the cantonal tax.

Do not confuse the offices

Distinguishing responsibilities avoids using the wrong data to estimate net pay. The AFC/ESTV handles the IFD and IVA. Cantonal administrations manage cantonal and municipal taxation. UFAS/BSV concerns social security, including AVS/AI/LPP, but does not set taxes. UST/BFS produces statistics and does not set tax rates. Therefore, a salary statistic is not a tax table, and a reference to social security does not replace the calculation of direct federal tax.

A hypothetical worker evaluating two offers with the same gross pay must therefore compare the items in the same order, without adding LAMal to salary contributions. The health insurance premium remains separate; taxation changes with the three levels and the municipality; housing may require a deposit, but the limit is three months' rent and the account is in the tenant's name. To broaden the comparison, the costo della vita in Svizzera can be used.

Housing and residence status

Tenancy law is federal and the same in every canton. If the landlord gives notice, the termination is valid only on the official cantonal form; the challenge must be submitted within 30 days to the conciliation authority. For those who do not have Swiss citizenship, SEM distinguishes permit L, short-term and valid for up to one year, B, a renewable residence permit, C, a settlement permit generally after ten years of residence or five for UE/AELS citizens, and G for cross-border commuters. These are checks separate from salary, but they affect the overall assessment of an offer in Canton Vaud.

Useful planning tools

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

Key points

The checklist before accepting

Practical verification can be carried out in five steps, using only documentable items and referring to annual indexed figures from official sources.

1. Identify the salary rule

Check if the position is covered by a cantonal minimum wage or a collective agreement. There is no single federal threshold. If the comparison concerns the level of education, do not replace the contract with an average: use the salary stated in the offer and verify the sector and working hours.

2. Read the working conditions

Compare the gross salary, weekly hours, holidays, and notice period. The reference is 45 hours for industry, offices, and sales, and 50 in other sectors; minimum holidays are four weeks, five for those under 20. Also note the 14 weeks of maternity leave at 80% via IPG and the two weeks of paternity leave where applicable.

3. Separate payslip and insurance

Check the indicated items: AVS/AI/IPG, AD/AC, LAINF/LAA, and LPP on the coordinated salary, with the brackets provided for age. Keep the LAMal on a separate line: it is mandatory for residents, private, with a per capita premium, and must be stipulated within three months of arrival. If applicable, check for the cantonal premium reduction.

4. Link taxes and housing

Remember the three tax levels and do not attribute functions belonging to other offices to the UFAS/BSV or UST/BFS: AFC/ESTV concerns IFD and VAT, while cantonal administrations handle cantonal and municipal taxes. For housing, verify the deposit, blocked account, and official form if a notice of termination arrives; the contestation period is 30 days.

5. Verify status and updates

If you are a foreign national, identify the SEM category: L, B, C, or G. For indexed amounts such as the 3a third pillar maximum, LPP coordination threshold or deduction, AD/AC maximum, average LAMal premiums, and median salary, do not use an outdated figure: it must be checked in the official source. To search for opportunities, you can consult job advertisements and companies that are hiring. For the final comparison between gross salary, deductions, and recurring costs, use the salary calculator.