Salary Slips in Switzerland

Key Components of a Swiss Salary Slip

1. Employee Information

Salary slips typically include the following employee details:

• Full name
• Employee number
• Position or title
• Employment start date
• Social security number (AHV number)

2. Gross Salary

The gross salary represents the total earnings before any deductions. It includes base salary, bonuses, overtime, and any other additional payments such as allowances for travel or housing.

3. Deductions

Swiss salary slips list mandatory deductions, which can include:

• Social security contributions (AHV, IV, ALV, BVG)
• Income tax (withheld at source, depending on the canton)
• Pension plan contributions (BVG)
• Health insurance premiums (if applicable)

4. Net Salary

The net salary is the amount the employee receives after all deductions. This is the take-home pay after taxes and social security contributions have been subtracted from the gross salary.

5. Employer Contributions

Some salary slips also show the employer’s contributions to social security and pension plans. These contributions are typically paid in addition to the employee’s salary and can be significant.

6. Additional Benefits

If applicable, salary slips may also display additional benefits, such as:

• Meal allowances
• Travel reimbursements
• Childcare benefits
• Bonuses or commissions

7. Period of Payment

Salary slips clearly specify the payment period, typically monthly, and include the start and end dates of the period for which the salary is paid.

Legal Requirements for Salary Slips in Switzerland

Swiss law mandates that employers provide salary slips for every payment, ensuring transparency and helping employees understand their earnings and deductions. Salary slips must be delivered at regular intervals, generally every month. Although there is no specific format mandated by law, the information provided must be accurate and clear.

Common Payroll Deductions in Switzerland

• AHV (Old Age and Survivors’ Insurance): A mandatory contribution to the social security system, covering pensions for retirees and survivors.
• IV (Disability Insurance): Provides income for employees who are unable to work due to illness or disability.
• ALV (Unemployment Insurance): Covers unemployment benefits for workers who lose their jobs.
• BVG (Occupational Pension Plan): A mandatory employer-based pension plan that supplements the AHV.
• Taxes: Employees in Switzerland are subject to federal, cantonal, and municipal taxes, which are usually deducted at source.

How to Read a Salary Slip

• Start by reviewing the gross salary to understand the full compensation.
• Check the deductions, ensuring all mandatory contributions (taxes, social security) are correct.
• Compare the net salary to ensure it matches the take-home amount after deductions.
• If applicable, verify any additional allowances or benefits.

Why Salary Slips Are Important

• Transparency: They provide employees with a clear breakdown of their earnings and deductions.
• Tax Filing: Salary slips are used for annual tax filings, as they contain crucial information on income and deductions.
• Record Keeping: Both employers and employees should keep salary slips as records for accounting, legal, and tax purposes.
• Proof of Income: Salary slips serve as official proof of income for loans, mortgages, or visa applications.