How to read a Swiss payslip (Lohnabrechnung), line by line
Updated · 2 sources
Direct answer
A Swiss payslip deducts, in order: AHV/IV/EO at 5.30%, ALV at 1.10% (up to CHF 148,200 a year), NBU accident insurance at roughly 1–1.5% if you work 8+ hours a week, and your BVG pension share on the coordinated salary (CHF 26,460 to 90,720). Income tax only appears on the payslip as withholding tax (Quellensteuer) if you hold a Permit B, L or G; everyone else pays tax later by invoice.
Key facts
- AHV/IV/EO: 5.30% of gross, no cap; ALV: 1.10% up to CHF 148,200/yr
- BVG is charged on the coordinated salary only (gross capped at CHF 90,720 minus CHF 26,460)
- Health insurance (KVG) never appears on a Swiss payslip; you pay the insurer yourself
- Worked example below: CHF 7,500 gross becomes CHF 6,658 before tax at age 35–44
Check your payslip in this order
Work top to bottom. Each line has a legal basis and a rate you can verify in under a minute; errors are usually a wrong BVG age bracket, a stale withholding-tax tariff, or a workload percentage that was never updated.
- 1Gross salary (Bruttolohn): monthly salary, plus 13th salary instalment, allowances and any bonus. This is the base for AHV.
- 2AHV/IV/EO: exactly 5.30% of the full gross amount. There is no upper limit.
- 3ALV: 1.10%, but only on the part of annual salary up to CHF 148,200. High earners see this line drop to zero late in the year.
- 4NBU (non-occupational accident): only if you work at least 8 hours per week for this employer; typically 1.0–1.5%. KTG (daily sickness allowance) is optional and set by your contract, often split 50/50.
- 5BVG pension: your plan insures the coordinated salary, not the full salary. Your share is at least half of the age-bracket credit (3.5% at 25–34, 5% at 35–44, 7.5% at 45–54, 9% at 55–65 of coordinated salary at the statutory minimum).
- 6Quellensteuer (only Permit B, L or G without a C permit): the tariff letter encodes canton, marital status, church tax and number of children. A wrong letter is the most common payslip error.
- 7Net pay (Nettolohn): what reaches your account. Compare it with the annual salary certificate (Lohnausweis) you receive each January for your tax return.
Worked example: CHF 7,500 a month, age 40
Annual gross is CHF 90,000. AHV/IV/EO takes CHF 397.50 a month and ALV CHF 82.50. The coordinated salary is CHF 90,000 − 26,460 = CHF 63,540 a year, so at the 35–44 bracket your BVG share is 5% of that, CHF 264.75 a month. With NBU at 1.3% (CHF 97.50), total deductions are CHF 842.25 and net pay before tax is CHF 6,657.75.
Two things surprise newcomers: your employer pays at least the same again on top (another 5.30% AHV, 1.10% ALV and at least half the BVG), and none of this includes health insurance, which you contract and pay yourself.
| Line | Rate | Per month |
|---|---|---|
| Gross salary | — | CHF 7,500.00 |
| AHV/IV/EO | 5.30% of gross | − CHF 397.50 |
| ALV | 1.10% of gross | − CHF 82.50 |
| BVG (age 35–44) | 5% of CHF 5,295 coordinated | − CHF 264.75 |
| NBU | 1.3% (plan rate) | − CHF 97.50 |
| Net before tax | — | CHF 6,657.75 |
The three errors worth querying with HR
First, a BVG bracket that does not match your age on 1 January. Second, ALV still being charged after your cumulative salary passes CHF 148,200. Third, a Quellensteuer tariff that ignores a marriage, a child or a church exit. All three are corrected retroactively if you raise them in writing; keep every payslip until the Lohnausweis has been checked against them.
FAQ
- Why is there no income tax on my Swiss payslip?
- Swiss citizens and Permit C holders are taxed by annual invoice after filing a tax return. Only foreign employees on Permit B, L or G have withholding tax (Quellensteuer) deducted monthly.
- Why is my BVG deduction lower than 5% of my salary?
- BVG is charged on the coordinated salary: gross salary capped at CHF 90,720 minus the CHF 26,460 coordination deduction. On CHF 90,000 that leaves CHF 63,540 insured, so the deduction looks small relative to gross pay.
- Is health insurance deducted from salary in Switzerland?
- No. Mandatory basic insurance (KVG/LAMal) is a private contract between you and an insurer and never passes through payroll.
- What should I do if a payslip line is wrong?
- Ask HR in writing, naming the line and the correct rate or tariff. Employers must correct social-security lines retroactively; keep payslips until you have reconciled them with the January Lohnausweis.
Related guides
- Swiss gross-to-net salary in 2026: AHV, ALV, BVG and taxes explainedIn Switzerland, mandatory employee social security and pension deductions reduce gross salary by roughly 10% to 16% before income tax: 5.30% for AHV/IV/EO, 1.10% for ALV (up to CHF 148,200), ~1.3% for NBU/KTG, and 3.5% to 9.0% of coordinated salary for the 2nd-pillar pension (BVG/LPP).
- 13th salary vs bonus in Switzerland: what is owed when you leaveA 13th month salary is fixed pay paid in instalments: it is owed pro rata for every month worked, including when you resign mid-year. A bonus (Gratifikation) is a voluntary special payment that is only owed if contractually promised, and a discretionary bonus is generally not owed pro rata on exit. Both are fully subject to AHV/IV/EO and ALV contributions.
- How much does an employee really cost a Swiss employer in 2026?Budget roughly 12–15% on top of gross salary for a typical Swiss office employee: the employer matches AHV/IV/EO at 5.30% and ALV at 1.10%, pays at least half the BVG pension (5% of the coordinated salary at age 35–44), plus cantonal family-allowance contributions and employer-paid occupational accident insurance. On a CHF 90,000 salary that is about CHF 11,200 of employer charges, a total cost near CHF 101,200 before daily-sickness cover or extras.