Swiss social security contributions are split between employer and employee. In 2026, each pays 5.3% for old-age and survivors’ insurance, disability insurance and income compensation (AHV/IV/EO, or AVS/AI/APG in French), plus 1.1% unemployment insurance (ALV/AC) on annual salary up to CHF 148,200. Occupational pensions, insurance premiums and cantonal contributions add to these amounts.
When planning to hire (in French), distinguish gross salary from employee deductions and employer contributions. Below you will find the rates, how they are shared and a worked example. To budget annual, monthly and hourly employment costs, also see our Swiss employee cost calculator (in French). People recognised as self-employed follow a different contribution system, explained below.
Swiss social security contributions at a glance
- Employer and employee: each pays 6.4% for AHV/IV/EO and unemployment insurance on salary below the unemployment insurance ceiling, before other contributions.
- Employer contributions: these are added to gross salary when calculating employment costs.
- Employee deductions: these are withheld from gross pay to calculate net pay before tax.
- Variable rates: pension contributions, accident insurance, sickness benefits insurance and family allowances depend on the fund, policy and individual circumstances.
- Recognised self-employed status: AHV/IV/EO contributions reach 10% of assessable income, with family allowance contributions and compensation office fees payable in addition.
Social insurance, contributions and the three pillars: what is the difference?
Swiss social insurance schemes provide protection against risks such as old age, disability, death, unemployment and accidents. Social security contributions finance that protection. For employers, the two questions go together: which cover must be arranged, and how much should be budgeted on top of salaries?
The three pillars refer specifically to retirement, survivors’ and disability provision. They do not cover every social insurance scheme:
- First pillar: state provision. AHV/AVS and IV/AI, together with supplementary benefits, aim to cover basic living needs. Income compensation benefits (EO/APG) are also administered within the first-pillar insurance framework but address other situations involving loss of earnings.
- Second pillar: occupational pensions. The pension fund supplements the first pillar. Compulsory membership for employees depends on the statutory conditions; self-employed people may join voluntarily. The occupational pension rules and contributions are explained below.
- Third pillar: individual provision. This optional pillar allows individuals to supplement their retirement savings. A third-pillar payment is not a compulsory employer contribution to add automatically to employment costs.
Accident insurance, unemployment insurance and family allowances meet other needs. Also distinguish EO/APG income compensation from daily sickness benefits insurance, which covers lost income under the policy terms: they are different types of cover.
A self-employed person arranges protection according to their status. An owner-manager paid by their own Swiss LLC or limited company is treated as an employee for that remuneration. Paying unemployment contributions does not automatically create entitlement to benefits while they retain an employer-like position: see our article on unemployment benefits for Swiss LLC owner-managers (in French).
For cover protecting the business itself, such as professional liability insurance, see our article on business insurance (in French). References: the three-pillar system (in French) and self-employed status in Swiss social insurance.
What are the Swiss social security contribution rates for 2026?
The table separates employer and employee shares. Each rate applies to the stated calculation base: not every contribution is charged on the entire gross salary.
| Contribution | Employer | Employee | Calculation base and rule |
|---|---|---|---|
| AHV/AVS: old-age and survivors’ insurance | 4.35% | 4.35% | Salary subject to AHV/AVS |
| IV/AI: disability insurance | 0.70% | 0.70% | Salary subject to AHV/AVS |
| EO/APG: income compensation | 0.25% | 0.25% | Salary subject to AHV/AVS |
| AHV/IV/EO subtotal | 5.30% | 5.30% | No general salary ceiling; special cases apply |
| Unemployment insurance (ALV/AC) | 1.10% | 1.10% | Annual salary up to CHF 148,200; no contribution on the excess |
| Occupational pension (BVG/LPP) | According to the pension plan | According to the pension plan | Salary insured by the fund; see the pension section |
| Occupational accident insurance | Full premium | 0% | Contractual rate; insured accident earnings capped at CHF 148,200 a year |
| Non-occupational accident insurance | If a more favourable arrangement is agreed | Normally pays the premium | Cover from 8 hours a week with the same employer |
| Family allowance contributions | According to the fund | Normally 0% | Exception in Valais: an employee contribution applies |
| Daily sickness benefits insurance | According to policy or collective agreement | According to policy or collective agreement | Cover and allocation of premiums vary |
| Cantonal contributions and fees | According to canton and fund | Certain cantonal contributions | Check the calculation base for each item |
The national rates are shown in the official 2026 social insurance contribution overview (in French). No single total rate applies to every Swiss employer.
Estimate the cost of an employee
To turn contribution rates into a full hiring budget, use our Swiss employee cost calculator (in French). It estimates annual, monthly and hourly costs, including a thirteenth salary, employer contributions and other costs of the role. The linked calculator is currently in French.
Employer and employee contributions: who pays what?
The employer contributions are paid by the business on top of gross salary. The employee contributions are withheld from the employee’s gross pay. The employer then remits both shares to the relevant organisations.
For the business
Employer cost = gross salary + employer contributions + other employment costs. The payment to the compensation office can also include employee deductions, which are already part of gross salary.
For the employee
Net pay before tax = gross pay − employee deductions. Tax deducted at source, where applicable, then reduces the amount paid out. Compulsory health insurance premiums are normally paid separately.
Family allowances paid to a parent and the employer’s family allowance contributions are separate items. A business contributes under its fund’s rules even if some employees have no children.
Example: what does an employee earning CHF 6,000 gross cost?
Consider a 40-year-old employee earning CHF 6,000 over 12 months: CHF 72,000 gross a year. The example uses Geneva OCAS rates for annual payroll up to CHF 2.5 million. Occupational accident, sickness benefits and compensation office fee rates are illustrative assumptions; replace them with your actual rates.
| Item | Assumption | Annual cost |
|---|---|---|
| Gross salary | CHF 6,000 × 12 | CHF 72,000.00 |
| AHV/IV/EO | Employer share: 5.3% | CHF 3,816.00 |
| Unemployment insurance | Employer share: 1.1% | CHF 792.00 |
| Family allowance contributions | OCAS: 2.22% | CHF 1,598.40 |
| Maternity, childcare and vocational training contributions | 0.029% + 0.07% + 0.082% | CHF 130.32 |
| Occupational accident insurance | Assumed rate: 0.8% | CHF 576.00 |
| Employer’s sickness benefits insurance | Assumed rate: 0.5% | CHF 360.00 |
| AHV compensation office fees | Assumed 2.5% of CHF 7,632 in combined AHV/IV/EO contributions | CHF 190.80 |
| Employer’s minimum pension savings contribution | 50% × 10% × (72,000 − 26,460) | CHF 2,277.00 |
| Estimated employer contributions | Excluding pension risk premiums and fees | CHF 9,740.52 |
| Estimated employer budget | Gross salary plus the items above | CHF 81,740.52 |
This gives an average budget of CHF 6,811.71 a month, with employer contributions equal to 13.53% of gross pay under these assumptions. The actual pension contribution can be higher: this example includes only minimum retirement savings. Add any further costs arising from the employment contract or industry.
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Why do occupational pension contributions vary so much?
The second pillar supplements AHV/IV state provision. Contributions are set by the pension fund’s rules and may cover retirement savings, death and disability risks, administration and benefits above the statutory minimum.
In 2026, the annual salary threshold for compulsory occupational pension insurance is CHF 22,680, subject to the eligibility conditions. For the statutory minimum, the coordination deduction is CHF 26,460 and the upper salary limit is CHF 90,720. Where compulsory insurance applies, the coordinated salary ranges from CHF 3,780 to CHF 64,260.
| Age | Rate on coordinated salary | In the employer cost calculator |
|---|---|---|
| 18 to 24 | No compulsory retirement savings yet | Enter risk premiums and fees in the known pension contribution amount |
| 25 to 34 | 7% | Employer share estimated at 50% of the retirement credit |
| 35 to 44 | 10% | Same assumed split |
| 45 to 54 | 15% | Same assumed split |
| 55 to reference retirement age | 18% | Calculation applies before AHV/AVS reference age |
These percentages are retirement credits, not the full rate on the pension fund’s invoice. The employer’s total contribution must be at least equal to the total contributions of all its employees. Check the pension plan for the individual split and insured salary.
Which social security contributions vary by canton?
AHV/IV/EO and unemployment insurance use national rates. Family allowance contributions and certain additional levies depend on the canton and affiliated fund. A family allowance rate published by one fund is not automatically the rate for every employer in that canton.
| Fund / canton | Employer share | Employee share and notes |
|---|---|---|
| Geneva, OCAS | Family allowances 2.22%; maternity 0.029%; childcare 0.07%; vocational training according to payroll | Maternity 0.029%. Training rate used here: 0.082% for annual payroll up to CHF 2.5 million |
| Vaud, cantonal compensation fund | Family allowances 2.29%; training 0.09%; childcare 0.16%; family allowance administration 0.08%; PC Fam 0.09% | PC Fam 0.09%. The other items in this row are paid by the employer |
| Valais | Family allowances and other contributions according to the fund | Employee family allowance contribution: check the applicable fund rate; CIVAF lists 0.131% (source in French) |
| Fribourg, Neuchâtel, Jura and other cantons | Check the relevant compensation fund’s statement | Choose “Other fund / canton” in the calculator and enter the applicable rates |
Sources: OCAS: key figures for 2026 (in French) and Vaud cantonal compensation fund: employer contribution rates (in French). In Vaud, PC Fam increased from 0.06% to 0.09% for each party in 2026. The fund groups the four employer items of 2.29%, 0.09%, 0.16% and 0.08% under a 2.62% family allowance total: do not add that total a second time.
What social security contributions do self-employed people pay in Switzerland?
Someone recognised as self-employed by the compensation office pays their own contributions. The AHV/IV/EO rate reaches 10% of assessable annual income from CHF 60,500. A sliding scale applies below that level. A minimum contribution of CHF 530 normally applies to annual income below CHF 10,100, subject to the special rules.
Assessable income is the business income used for contributions after the adjustments required by AHV/AVS rules. It is not the same as revenue. Payments on account are adjusted once the final information is available.
Family allowance contributions and compensation office fees are payable in addition. Self-employed activity does not provide unemployment insurance cover. Accident cover, income protection and pension provision also need to be arranged according to the individual’s situation. See the official leaflet for self-employed people and our article on becoming self-employed in Switzerland.
How should your business manage social security contributions?
From the first payroll, a regular process helps prevent corrections and unexpected cash requirements. Follow these steps:
Check status and registrations
Establish whether the person is an employee or self-employed for the planned activity. Register the employer with the relevant compensation office (in French) and family allowance fund.
Arrange insurance cover
Put accident insurance in place and check compulsory pension membership. Review any collective agreement requirements and sickness cover. Daily sickness benefits insurance is not a general federal requirement, but it may be required by a collective agreement.
Prepare each payslip
Identify salary components subject to contributions, ceilings and each party’s share. Add cantonal contributions and any tax deducted at source separately.
Pay instalments and declare salaries
Pay contributions by the required dates and adjust payments on account when payroll changes. At year-end, submit the required declarations and reconcile the final statements with your accounts.
Also read our articles on the Swiss salary certificate (in French) and continued salary payment during illness (in French).
Low salaries, retirement and cross-border work: what should you check?
Small amounts of salary
For salary up to CHF 2,500 per calendar year and employer, AHV/IV/EO contributions are generally collected only at the employee’s request. Exceptions apply, notably to domestic work and certain artistic activities. This threshold does not remove the need to check other insurance obligations.
After AHV/AVS reference retirement age
Unemployment contributions cease. For AHV/IV/EO, an allowance of CHF 1,400 per month or CHF 16,800 per year and employer normally applies. It can be waived under the applicable rules. Our employer cost calculator does not cover this situation.
Cross-border workers and work abroad
Check which social security system applies when work takes place in more than one country, including remote working. Country of residence and work permit do not, by themselves, determine every contribution. The calculations here assume Swiss social insurance applies.
Part-time work and insurance
Non-occupational accident cover applies from eight hours of work per week with the same employer. For occupational pensions, income and the fund’s rules also matter. Use the actual salary paid and check the cover provided.
AHV/AVS rules and exceptions are explained in the official employee contributions leaflet.
Common mistakes when calculating Swiss social security costs
- Adding the employee share twice: it is already included in gross salary.
- Applying one total percentage to every salary: ceilings, pension arrangements and insurance premiums change the result.
- Treating the 7% to 18% pension credits as a rate on gross pay: these credits apply to coordinated salary and do not cover the whole pension contribution.
- Forgetting the thirteenth salary or bonuses: they can change annual calculation bases and payments on account.
- Confusing health insurance with sickness benefits insurance: compulsory health insurance pays for medical care; daily sickness benefits cover salary lost through illness under the policy.
- Treating the third pillar as a compulsory employer cost: it is individual pension provision and should be considered separately.
Swiss social security explained on video
Play the video in French Understanding Swiss social security contributions: video
In this French-language video, Romain Prieur explains social security contributions and how they are shared between employer and employee. Use this article’s tables for the current rates and thresholds.
Visit Romain’s Entreprendre en Suisse YouTube channel (in French) →
Budget the full cost of hiring in Switzerland
Start with the annual gross salary, then add each employer contribution using the correct base and your actual insurance and pension terms. Keep employee deductions separate to avoid double counting. These costs also feed into your business profit calculation. Our payroll team can help you turn the budget into accurate payslips and declarations.
Frequently asked questions about Swiss social security contributions
What is the total Swiss social security contribution rate in 2026?
There is no single total rate. AHV/IV/EO is 5.3% for each party, plus 1.1% unemployment insurance on salary within the ceiling. Pension contributions, insurance premiums, family allowances and fund-specific or cantonal contributions must be added.
What is the difference between employer and employee contributions?
Employer contributions are added to gross salary and paid by the business. Employee contributions are deducted from that gross salary. The employer remits both amounts to the social insurance organisations.
What does an employee on CHF 6,000 gross cost?
In this article’s Geneva example, based on 12 salary payments, the budget is CHF 81,740.52 a year, or CHF 6,811.71 a month on average. It depends on the stated assumptions and excludes pension risk premiums and fees that have not been entered.
Are social security costs the same in every canton?
AHV/IV/EO and unemployment rates are national. Family allowance contributions and additional levies vary by fund and canton. Accident premiums, sickness benefits insurance and pension costs also depend on the policies and plan.
Why do pension contributions increase with age?
Statutory minimum retirement credits increase by age band: 7%, 10%, 15% and then 18% of coordinated salary. The actual contribution depends on the pension plan, risk cover, fees and financing arrangements.
Is unemployment insurance charged above CHF 148,200?
No unemployment contribution applies to annual salary above CHF 148,200. The solidarity contribution on higher salaries was abolished on 1 January 2023.
Is the thirteenth salary subject to social security contributions?
It normally forms part of assessable salary. When budgeting, multiply monthly pay by 13 if that payment is agreed, then apply each insurance scheme’s calculation base, ceilings and rules.
Does a self-employed person pay 10% of all revenue?
The 10% AHV/IV/EO rate applies to assessable income from CHF 60,500, not to business revenue. Lower income is subject to a sliding scale. Compensation office fees, family allowance contributions and additional insurance are separate.
Is an LLC owner-manager’s salary subject to contributions?
Yes. Their remuneration falls under the employee system. The company pays the employer share and deducts the employee share. Their management position can nevertheless restrict entitlement to unemployment benefits.
Is compulsory Swiss health insurance deducted from salary?
The insured person normally pays their health insurance premium separately. This differs from daily sickness benefits insurance, part of which may be deducted from payroll under the policy or collective agreement.
Does your employer cost calculator replace a payroll statement?
Our employer cost calculator (in French) helps prepare a full-year budget using the displayed items and assumptions. For actual payroll, use your fund’s rates, insurance policies and pension statement. Post-retirement, international and other special situations need an adapted calculation.
Need ongoing payroll support?
Payslips, social security contributions and annual declarations: explore the support our accounting team provides to Swiss employers.
Official sources and updates
References for the contribution rates, thresholds and rules presented:
- Federal Social Insurance Office: contribution overview for 2026 (in French).
- AHV/IV Information Centre: employee contributions.
- AHV/IV Information Centre: self-employed contributions.
- OCAS: key figures for 2026 and occupational pension parameters (in French).
- Vaud cantonal compensation fund: employer contribution rates (in French).
English edition and contribution figures reviewed on 21 September 2026. The examples are estimates based on the stated assumptions. Compensation office decisions, insurance policies and pension fund rules determine the amounts for your situation.
Romain Prieur is a Swiss certified public accountant and the founder of Entreprendre.ch. With over ten years of experience in auditing and advising businesses in Switzerland, he helps entrepreneurs with company formation, accounting and taxation.
