Swiss gross-to-net salary in 2026: AHV, ALV, BVG and taxes explained
Updated · 2 sources
Direct answer
In 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).
Key facts
- AHV / IV / EO employee share: 5.30% (uncapped)
- ALV unemployment insurance: 1.10% up to CHF 148,200/yr
- BVG entry threshold: CHF 22,680; coordination deduction: CHF 26,460
- BVG age-tiered savings rates: 7% (25–34), 10% (35–44), 15% (45–54), 18% (55–65) split 50/50
1st Pillar: AHV, IV, EO and ALV
Every employee working in Switzerland contributes 5.30% of their entire gross salary toward Old-Age and Survivors' Insurance (AHV, 4.35%), Disability Insurance (IV, 0.70%), and Income Compensation (EO, 0.25%). Your employer pays an identical 5.30% on top.
Unemployment Insurance (ALV) is 1.10% for the employee and 1.10% for the employer on annual salary up to CHF 148,200. The solidarity surcharge of 0.5% on salary above CHF 148,200 was abolished on 1 January 2023.
2nd Pillar: BVG / LPP occupational pension
Occupational pension contributions start from 1 January following your 17th birthday for risk cover and following your 24th birthday for retirement savings, provided your annual salary with one employer exceeds CHF 22,680 (the 2026 BVG entry threshold).
Under statutory BVG minimums, the pension fund deducts the CHF 26,460 coordination deduction from your gross annual salary to determine your insured (coordinated) salary, which is capped at CHF 64,260 (corresponding to a CHF 90,720 gross salary). Total statutory retirement credits are 7% (ages 25–34), 10% (ages 35–44), 15% (ages 45–54), and 18% (ages 55–65), with the employer required by law to pay at least 50%.
Taxes and health insurance are separate
Swiss residents with a C permit or Swiss citizenship receive their net salary before income tax and pay federal, cantonal, and municipal taxes via an annual tax bill. Foreign nationals on an L or B permit have withholding tax (Quellensteuer) deducted directly from their monthly payslip.
Mandatory basic health insurance (KVG/LAMal) is never deducted from your payslip in Switzerland; every resident contracts and pays a health insurer directly per person.
FAQ
- How much is deducted from a gross salary in Switzerland?
- Mandatory social security and statutory BVG pension deductions typically total 10% to 16% of gross salary, depending on your age (which drives BVG rates) and whether your pension plan insures salary above the CHF 90,720 statutory ceiling.
- Is income tax deducted from my monthly salary in Switzerland?
- Only if you are subject to withholding tax (Quellensteuer), which applies to foreign employees on Permit L, B, or G. Swiss citizens and C-permit holders pay taxes separately via annual invoices.
- What is the BVG coordination deduction in 2026?
- CHF 26,460 per year. It represents the portion of income already insured by the 1st pillar (AHV).
- How is a 13th month salary taxed and deducted?
- The 13th month salary is subject to the exact same AHV/IV/EO, ALV, and tax rules as regular monthly salary payments.
Related guides
- BVG coordination deduction explained: why part-time pay is under-insuredThe coordination deduction (Koordinationsabzug, CHF 26,460 in 2026) is the part of your salary the 2nd pillar does not insure, because the 1st pillar (AHV) already covers it. Your pension fund insures only the salary between CHF 26,460 and CHF 90,720, the 'coordinated salary'. The catch: the full deduction also applies to part-time salaries unless your plan scales it, which is why an 80% or 60% Pensum can be insured on a fraction of its pay.
- 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 to read a Swiss payslip (Lohnabrechnung), line by lineA 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.