Social Security Contributions – Switzerland

AHV (old-age pension) 8.7%, IV (disability) 1.4%, EO (income compensation for military/maternity) 0.5%. Split equally: employee 5.3%, employer 5.3%. No income ceiling - applies to all salary. Self-employed pay 10.0% (sliding scale for income below CHF 60,500).

Starting 2026, pensioners receive 13th monthly AHV payment (paid in December). Approved by popular vote. Increases retirement income by ~8.3%. Funded by same contribution rates - no increase for workers.

Women's retirement age gradually increasing to match men's 65 by 2028. Currently 64.5 in 2026. Flexible retirement possible: early from age 63 (reduced benefits) or delayed to 70 (increased benefits).

1.1% employee, 1.1% employer. Applies up to CHF 148,200 annual salary (CHF 12,350/month). Income above this threshold not subject to ALV contributions. Covers unemployment benefits up to ~70-80% of insured salary for eligible workers.

For salary portion between CHF 148,200 and CHF 315,000: additional 1% ALV contribution (0.5% employee, 0.5% employer). Solidarity contribution without additional benefits. Creates small marginal increase for high earners.

25-34 years: 7% total. 35-44 years: 10% total. 45-54 years: 15% total. 55-65 years: 18% total. Typically split 50/50 or more by employer (e.g., 60% employer, 40% employee). Mandatory for salaries above CHF 22,680.

Minimum interest rate on BVG pension capital 1.25% in 2026. Unchanged from 2025. Conservative rate reflecting low interest environment. Actual pension funds may pay higher voluntary rates on 'extra-mandatory' portion.

All BVG contributions deductible from taxable income. Reduces tax burden significantly. At withdrawal (retirement/emigration), special reduced tax rate applies. Creates powerful retirement savings incentive.

Fully paid by employer. Rate varies by industry risk level. Office jobs ~0.1%, construction ~2%. Mandatory for all employees. Covers work-related accidents and occupational illnesses.

Paid by employee via payroll deduction. Covers non-work accidents (sports, home, etc.). Rate varies by insurance provider. Mandatory for employees working 8+ hours/week with same employer.

Fully employer-paid. Rate varies by canton (Geneva 2.22%, Vaud varies, etc.). Funds child allowances (CHF 200-300/month per child) and education allowances (CHF 250-400/month). Families receive benefits from canton automatically.