Swiss salary deductions: every payslip line explained (2026)
The social insurance lines
| Deduction | 2026 rate | At CHF 90,000 |
|---|---|---|
| AHV/IV/EO (state pension, disability) | 5.3%, no ceiling | CHF 4'770 |
| ALV (unemployment) | 1.1% to 148'200 | CHF 990 |
| NBU (non-occupational accident) | assumed 1%, varies by insurer and risk class | CHF 900 |
| BVG (pension fund) | age-band credit, your half | CHF 3'177 |
Your employer pays the same again for AHV/IV/EO and ALV and at least half of the pension credits. The old solidarity percent on very high salaries stays abolished in 2026.
Why the pension deduction grows with age
Statutory pension credits are 7% of the coordinated salary at age 25 to 34, then 10%, 15%, and 18% from 55. The coordinated salary is your pay minus the CHF 26'460 coordination deduction, within statutory bounds. Many funds insure more than the legal minimum and add risk and administration premiums, so real payslips often deduct more than the statutory half our calculator shows, which is stated on every result.
Where income tax fits
Swiss citizens, C-permit holders and people married to either pay income tax by invoice after filing, not through payroll, so wise budgeting sets aside a monthly slice. Other foreign employees without a C permit are taxed at source directly in the payslip; above CHF 120,000 tax is still withheld at source, and a mandatory subsequent ordinary assessment then follows. Tax levels differ widely between cantons: among the cantonal capitals, Neuchâtel charges about 4.7 times the tax of Zug at CHF 60,000 and about 3.4 times at CHF 100,000 (Neuchâtel vs Zug), ranked in our canton comparison.
The missing line: health insurance
Mandatory health insurance never appears on a Swiss payslip. You pay the premium directly to your chosen insurer, typically several hundred francs a month, which is the single biggest surprise for newcomers comparing Swiss net pay with countries where health insurance is a payroll deduction.
The 13th salary
Common in Switzerland, but unlike Austria's it enjoys no special tax rate: it is ordinary salary paid in a 13th installment. Divide an "including 13th" annual package by 13, not 12, for the real monthly figure.
Frequently asked questions
What is KTG on my payslip?
Sickness daily-allowance insurance, a contractual benefit many employers carry. Employees usually pay half of the premium; that employee share is typically roughly 0.3 to 1% of salary, set in your contract or policy.
Does the 5.3% AHV stop at high salaries?
No, AHV/IV/EO has no earnings ceiling. Unemployment and accident insurance stop at CHF 148'200 of insured salary, and the statutory pension (BVG) salary is capped at CHF 90'720 (coordinated salary at most CHF 64'260), although many funds insure more.
Is my bonus deducted the same way?
Yes. Bonuses are ordinary AHV-liable salary, with pension treatment depending on your fund's rules.
2026 rates per the AHV/IV leaflets and BVG key figures; example computed with our tested engine. Last updated 2026-11-04.