Swiss Salary Deductions 2026: What Comes Off Your Pay
AHV, unemployment insurance and pension fund: we walk you through exactly what gets deducted from your Swiss gross salary in 2026, and how much actually reaches your account.
The first paycheck after an apprenticeship, university or a new job is a big moment. You have a number in your head, maybe CHF 4,800 or CHF 6,200, and you've already worked out how much should be left at the end of the month for rent, saving and fun. Then the payslip arrives and the amount that actually lands in your account is noticeably lower. Where did the money go?
The short answer: almost nowhere. Most of your salary deductions don't disappear. They land in accounts that belong to you or protect you later: AHV contribution years, your pension fund balance, or cover in case of unemployment and accidents. You simply don't see this money again until years or decades later.
In this guide we go through every deduction on a Swiss payslip: how big a share it takes, what it's for, and what actually happens to each franc. At the end we run through a concrete example so you can understand your own payslip with confidence.
Gross and net: the difference in short
Your gross salary is the number in your employment contract. Your net salary is what lands in your account. In between sit four deductions required by law that affect practically every employee in Switzerland:
| Deduction | Your share | Applies up to |
|---|---|---|
| AHV / IV / EO | 5.3 % | No limit |
| ALV (unemployment) | 1.1 % | CHF 148,200 per year |
| NBU (non-occupational accident) | Depends on employer | No limit |
| BVG (pension fund) | Depends on age | Coordinated salary |
On top of that, some employees also have withholding tax (Quellensteuer) taken directly off their payslip. Let's go through each item.
AHV, IV and EO: your basic old-age pension
AHV, IV and EO together form Switzerland's first pillar and usually appear as a single line on your payslip. The total contribution in 2026 is 10.6 percent of your gross salary (AHV 8.7 %, IV 1.4 %, EO 0.5 %), split equally between you and your employer. Your share: 5.3 percent.
What makes this deduction special: it has no salary ceiling. Whether you earn CHF 50,000 or CHF 500,000 a year, you always pay 5.3 percent. In return, your contribution years and average income later determine the size of your AHV pension. Every year without contributions can create a gap in your future pension (1/44, or about 2.27 %, per missing contribution year), which matters especially if you spend time abroad or take longer career breaks. See exactly how your future pension is calculated in our AHV pension guide.
ALV: your protection against unemployment
Unemployment insurance costs you 1.1 percent of your gross salary, and your employer contributes the same share. Unlike the AHV, there's a ceiling here: the contribution only applies to salary up to CHF 148,200 per year. Earn more, and the portion above that stays completely deduction-free. The former "solidarity percent" on high salaries was abolished in 2023.
Unlike the AHV or BVG, the ALV is pure insurance with no personal savings account behind it. The money funds unemployment benefits for everyone currently claiming them. Lose your job, and in return you're entitled to daily allowances, provided you meet the minimum contribution period, usually 12 months within the last two years.
Accident insurance: BU is on your employer, NBU often on you
Accident insurance (UVG) splits into two cases. Occupational accident insurance (BU) covers accidents at work and is always paid entirely by your employer. This item never appears on your payslip at all.
Non-occupational accident insurance (NBU) covers accidents in your free time, from a skiing fall to a bike crash on your commute. If you work at least 8 hours a week for one employer, NBU is mandatory and is usually paid entirely by you. The rate depends on your employer's occupational risk category and often lands somewhere between 0.5 and 2.5 percent of your gross salary. Work fewer than 8 hours a week, and you're covered for free-time accidents through your health insurance instead.
The pension fund (BVG): the biggest chunk
For most employees, the BVG is the largest deduction on the payslip. At the same time, it's the part that's least "lost": every franc lands in your personal retirement account and belongs to you.
A few benchmark figures for 2026: the entry threshold is CHF 22,680 in annual salary. Only above this income are you mandatorily insured under the BVG with a given employer. From your gross salary, a coordination deduction of CHF 26,460 is subtracted. What's left is called the coordinated salary and ranges from a minimum of CHF 3,780 to a maximum of CHF 64,260. Your contribution is calculated on this coordinated salary, staggered by age:
| Age | Retirement credit (legal minimum) |
|---|---|
| 25–34 | 7 % of coordinated salary |
| 35–44 | 10 % of coordinated salary |
| 45–54 | 15 % of coordinated salary |
| 55 to reference age | 18 % of coordinated salary |
These percentages are the legal minimum and are split at least equally between you and your employer. Many pension funds are more generous. Your advantage: unlike the AHV or ALV, this money is your property. Change jobs, and it automatically transfers as a vested benefit, either into your new pension fund or, if you take a break, into a vested benefits account. More on the pension fund during your career-building years in our BVG guide.
Withholding tax: when tax comes straight off your salary
If you don't hold a C permit and live in Switzerland, or if you commute across the border as a cross-border worker, your income tax is usually withheld directly by your employer and paid to the tax office. This withholding tax (Quellensteuer) replaces the ordinary tax return for most people it applies to. How much is deducted depends on your canton, your gross salary, your marital status and the number of children you have. Rates differ noticeably from canton to canton. It's worth checking your canton of residence's withholding tax calculator to find your exact rate. If you're taxed the ordinary way instead, our step-by-step tax return guide walks you through it.
What does NOT come off your salary
Two items get mixed up with payroll deductions all the time, even though they run entirely separately:
Health insurance. Your mandatory basic health insurance is a private policy that you pay directly and monthly to your health insurer, independent of your employer. It never appears on a payslip and isn't income-dependent, which is exactly why it needs deliberate space in your budget. We show you how to bring the premium down in this guide.
Pillar 3a. Contributions to the voluntary third pillar are entirely your own decision. Some employers offer an automatic payroll deduction as a convenience, but it's never mandatory. Whether and how much you contribute is up to you, ideally with an eye on the maximum annual contribution – all the details in our pillar 3a guide.
How to read your payslip from top to bottom
Most Swiss payslips follow the same order, even though layout and software differ from company to company. At the top sits your gross salary, often split into base salary and any allowances such as shift or child allowances. Next come the statutory deductions in the same order we've covered them here: first AHV/IV/EO, then ALV, then NBU and BVG. If you're subject to withholding tax, it usually appears as the last deduction before your net salary.
At the bottom, or listed separately, you'll often find expense reimbursements, for commuting or working from home, for example. These aren't part of your salary and aren't taxed, as long as they cover real costs and aren't inflated flat rates. Don't confuse them with your net salary. They're listed separately and usually sit right at the bottom.
Worked example: CHF 6,500 gross salary in detail
To make the percentages concrete, here's an illustrative example for a 39-year-old with ordinary taxation, a CHF 6,500 monthly gross salary and a pension fund at the legal minimum:
| Item | Amount | Share |
|---|---|---|
| Gross salary | CHF 6,500.00 | 100 % |
| AHV/IV/EO (5.3 %) | – CHF 344.50 | 5.3 % |
| ALV (1.1 %) | – CHF 71.50 | 1.1 % |
| NBU (example 1.0 %) | – CHF 65.00 | 1.0 % |
| BVG (example, age 39) | – CHF 214.75 | 3.3 % |
| Net salary (before tax) | CHF 5,804.25 | 89.3 % |
Important: the NBU rate and BVG contribution here are example values. Your actual payslip depends on your pension fund's regulations and your employer's risk category. And note the phrase "before tax": if you're taxed the ordinary way, income tax isn't included in that CHF 5,804.25 yet. You pay that separately through provisional tax bills or at year-end.
The 13th monthly salary: a budgeting trap for beginners
Most Swiss employment contracts pay out 13 monthly salaries instead of 12. The 13th salary is often paid in November or December, sometimes split evenly between June and December. In those months your payslip is correspondingly higher, and the deductions rise proportionally with it.
For your budget, that means: if you simply divide your annual salary by twelve, you'll slightly overestimate your monthly income in eleven months and badly underestimate it in one or two months. Ask HR for the exact payout schedule and build your budget around that, not around the average.
Practical tip: your wage statement and pension certificate
At year-end you receive two important documents: the wage statement (Lohnausweis) for your tax return, and, usually separately from your employer, the pension certificate (Vorsorgeausweis) from your pension fund. The latter shows your current retirement savings, your projected BVG pension and whether a voluntary buy-in would be possible. Once a year, in January for example, take ten minutes for both documents. That way you catch early whether your pension planning is on track, instead of getting a surprise right before retirement.
Frequently Asked Questions
Why is my net salary so much lower than the gross salary in my contract?
Social insurance contributions (AHV/IV/EO, ALV, NBU, BVG) often add up to between 10 and 15 percent of your gross salary, depending on your age and pension fund. If you're subject to withholding tax, income tax comes straight off your payslip too, which makes the gap even bigger.
Is health insurance deducted from my salary?
No. Basic health insurance is a private mandatory policy that you pay separately and directly to your insurer. It never appears on a payslip.
What happens to my pension fund money if I change jobs?
It stays your property. It automatically transfers as a vested benefit into your new employer's pension fund. If you take a break or become self-employed, it lands in a vested benefits account or a vested benefits policy until it moves on.
From what salary do I stop paying ALV contributions?
On salary portions above CHF 148,200 per year, no ALV contribution applies anymore, since the former solidarity percent was abolished in 2023. AHV/IV/EO contributions, by contrast, have no ceiling and are levied on your entire salary.
Conclusion: most of your salary deduction is still your money
The number in the bottom corner of your payslip often feels like a loss. Mostly, it isn't: AHV contribution years secure your future pension. Your BVG balance belongs to you and keeps growing with every job. ALV and NBU kick in exactly when you need them most. Only health insurance and pillar 3a run deliberately separate from your payslip.
Take ten minutes this week for your latest payslip and match each line to the categories in this guide. If you then want to know how much of your net salary realistically fits your next savings goal, our savings goal calculator can help you run the numbers.