Swiss Salary 2025: Calculate Gross-Net Salary + Social Charges

The Swiss salary system is unique in the world: 13th salary, shared social charges, mandatory LPP from CHF 22,050. Here's the complete guide for employers and employees.

Difference Gross Salary vs Net Salary

Gross Salary

Agreed amount in employment contract, before deductions.

Example: CHF 6,000/month gross.

Net Salary

Amount actually paid to bank account, after mandatory deductions.

Example: CHF 6,000 gross → ~CHF 5,100 net (depending on canton and personal situation).

Mandatory Deductions (deducted from gross)

1. AVS/AI/APG (old age, disability, maternity insurance): 5.30%
2. AC (unemployment insurance): 1.10% (up to CHF 148,200/year)
3. LPP (occupational pension 2nd pillar): 7-18% depending on age
4. LAA (non-occupational accident insurance): ~1-2%
5. Withholding tax (foreigners without C permit): 0-25% depending on canton and salary

Employer Charges (in addition to gross salary)

Employer pays on top of gross:

• AVS/AI/APG: 5.30%
• AC: 1.10%
• Occupational LAA: 0.5-2%
• LPP: employer share (equal or greater than employee)
• Family allowances: 1-3% depending on canton

Real employer cost: ~120-130% of gross salary.

Example Calculation CHF 6,000/Month Salary

Employee (single, 30 years old, Vaud)

Monthly gross salary      : CHF 6,000

Employee deductions:
- AVS/AI/APG (5.30%)      : - CHF 318
- AC (1.10%)              : - CHF 66
- LPP (10%)               : - CHF 600
- LAA (1.4%)              : - CHF 84

Net salary paid          : CHF 4,932

Employer Charges (additional)

Gross salary paid        : CHF 6,000

Employer charges:
- AVS/AI/APG (5.30%)      : + CHF 318
- AC (1.10%)              : + CHF 66
- Occup. LAA (1%)         : + CHF 60
- LPP (10%)               : + CHF 600
- Family allow. (2%)      : + CHF 120

Total employer cost      : CHF 7,164

Total cost: CHF 7,164 for employer, CHF 4,932 received by employee.
Difference: CHF 2,232 in charges (31% of gross).

Detail of Swiss Social Charges 2025

1. AVS/AI/APG (Social Insurance)

Rate: 10.60% total (5.30% employee + 5.30% employer)

Coverage:

• Old age pension (AVS)
• Disability insurance (AI)
• Maternity/military service (APG)

Maximum contribution: no ceiling (unlike most countries).

2. AC (Unemployment Insurance)

Rate: 2.20% total (1.10% employee + 1.10% employer) Ceiling: on first CHF 148,200/year Additional rate: +1% on salary > CHF 148,200 (employee only)

3. LPP (2nd Pillar)

Mandatory: from CHF 22,050/year Rate: 7-18% depending on age

• 25-34 years: 7%
• 35-44 years: 10%
• 45-54 years: 15%
• 55-65 years: 18%

Shared: employer pays at least 50%.

4. LAA (Accident Insurance)

Occupational (100% employer): 0.5-2% Non-occupational (100% employee): 1-2%

5. Family Allowances

100% employer: 1-3% depending on canton Amount: CHF 200-300/child/month

13th Salary: How It Works

Principle

Extra month of salary paid once a year (usually December).

Calculation

If monthly salary = CHF 6,000 13th salary = CHF 6,000 (one additional month)

Is It Mandatory?

Not by law, but:

• 85% of Swiss employment contracts include it
• Standard in most sectors
• Often in collective agreements

Payment

• Most common: December (Christmas bonus)
• Or monthly (1/12 each month)
• Or mid-year + end of year (50/50)

How ToBill Helps Employers

Salary Management:

• Automatic social charge calculation
• Payslip generation
• Declaration export (AVS, LPP)
• Compliance with Swiss rates

Result: no calculation errors, guaranteed compliance.