Every employer in Switzerland must withhold social insurance contributions, remit them to the correct compensation offices, manage pension fund enrollment, handle accident insurance, and produce compliant salary statements. For companies employing foreign nationals, there is an additional layer: withholding tax (Quellensteuer).
Social Contributions Breakdown (2025)
| Contribution | Employee | Employer | Total |
|---|---|---|---|
| AHV (Old-age) | 4.35% | 4.35% | 8.70% |
| IV (Disability) | 0.70% | 0.70% | 1.40% |
| EO (Income replacement) | 0.25% | 0.25% | 0.50% |
| ALV (Unemployment) | 1.10% | 1.10% | 2.20% |
| Subtotal 1st pillar | 6.40% | 6.40% | 12.80% |
| BVG (Pension, ~) | ~7% | ~7% | ~14% |
| UVG non-occ. | ~1.5% | — | ~1.5% |
| UVG occ. | — | ~0.5% | ~0.5% |
| Family allowances | — | ~1.5% | ~1.5% |
Total employer cost above gross salary: approximately 13–16% of gross salary.
Withholding Tax (Quellensteuer)
Employees holding B, L, or G permits are subject to withholding tax. Rates depend on marital status, children, church affiliation, and income level. Employees earning above CHF 120,000/year must also file a regular tax return.
Our Payroll Services
Monthly payroll processing — gross-to-net calculation, all deductions, payslip generation.
Social insurance registration — AHV compensation office, BVG pension, UVG accident insurance.
Annual Lohnausweis — official salary statement for each employee.
Withholding tax reporting — monthly calculation and remittance to cantonal tax authority.
Key Deadlines
Monthly: Salary payments (typically by 25th), withholding tax remittance (by 15th of following month).
Quarterly: AHV/IV/EO/ALV contribution reporting.
January 31: Lohnausweis distribution, AHV salary declaration.
March 31: BVG pension reconciliation.