13th Month Salary in Switzerland: Who Gets It and How It Is Taxed

Who is entitled to a 13th month salary?

Switzerland does not have a single statute requiring all employers to pay a 13th month salary. The entitlement comes from one of two sources: a collective labour agreement (Gesamtarbeitsvertrag, GAV) that covers the industry, or an explicit clause in the individual employment contract. Because a large number of industries, including construction, hospitality, and retail, have codified it in their collective agreements, roughly two in three Swiss employees receive it in practice. If you are unsure whether your contract includes it, check your employment agreement or ask your HR department.

How the 13th month salary is paid

The most common practice is to pay the 13th month salary together with December wages. Some employers split it into two instalments, one in June or July and one in December, which can slightly reduce the January tax burden in cantons that use the current-year withholding basis. The exact timing is usually set by the collective agreement or company policy. From a tax standpoint, the timing affects which year the income falls into if you are close to a year end.

Tax treatment: ordinary income, no privilege

A common question from people moving to Switzerland from Austria is whether the 13th month salary benefits from a reduced tax rate. The answer is no. Unlike Austria, which taxes the 13th and 14th salary at a flat 6% after an allowance, Switzerland taxes the 13th month salary as ordinary income. It is simply added to your annual gross income, and the combined figure is taxed at the progressive rate that applies to your federal, cantonal, and communal income.

The practical effect is that the 13th month pushes you one step further up the progressive scale. At CHF 7,000 per month (annual gross without 13th: CHF 84,000, with 13th: CHF 91,000), the extra income tax in Zurich is approximately CHF 1,239. After deducting AHV/IV/EO at 5.3% and the additional income tax, you keep a meaningful proportion of the gross 13th month salary, but not as high a percentage as Austrian employees retain under their flat 6% scheme.

Social security on the 13th month

The 13th month salary is treated as ordinary employment income for AHV/IV/EO and ALV purposes. The AHV/IV/EO contribution of 5.3% applies to the full amount with no ceiling. The ALV contribution of 1.1% applies up to the annual insured salary ceiling of CHF 148,200. If your regular salary already exceeds CHF 148,200, the 13th month carries no additional ALV contribution. The same applies to the BVG pension contribution, where the coordinated salary is capped.

Pro-rata entitlement when joining or leaving mid-year

If you start or end a job part way through a year, the 13th month salary is normally pro-rated. Someone who works six months is entitled to half. The exact rule is set by the collective agreement or employment contract. On resignation the pro-rata 13th month is typically paid with the final salary. It is worth confirming this in the exit process to ensure it is not overlooked.

Comparing Switzerland and Austria

Both countries widely practice a 13th salary payment, but the tax treatment differs significantly. Austrian employees receive a 13th and 14th salary taxed at a flat 6% after a CHF 620 allowance, which keeps more of the gross amount net. Swiss employees have no such flat-rate privilege but benefit from lower overall income tax rates, especially in low-tax cantons. The net outcome depends heavily on the specific canton and income level; for some combinations the Swiss system produces higher net income overall despite the lack of a special-payment tax break.

Frequently asked questions

Tax example for Zurich 2026, single, no children. Computed with our tested engine. Last updated 2026-11-04.