Payslips in Switzerland: which deductions apply and how to calculate your net salary
A Swiss payslip shows how the agreed gross salary is reduced by statutory social security deductions until you're left with the net salary that's actually paid out. Depending on your age and pension fund, you typically keep 85 to 90 percent of your gross salary.
With the gross-to-net calculator, you can calculate the impact of salary deductions on your net salary.
What do gross and net mean on a pay slip?
On a Swiss pay slip, the gross salary appears at the top and the net salary at the bottom, and in between lies what you can trace step by step in this article. The gross salary is the agreed salary before any deductions. The net salary is what ends up in your account after social security deductions, embedded in the Swiss 3-pillar system comprising state pensions (AHV), occupational pensions, and private pensions.
Two items on the pay slip often cause confusion because they are not deductions: expenses are reimbursements of out-of-pocket costs and not salary. They are only added to the net salary after the deductions, but appear on the pay slip as a separate line. Family allowances are also processed via the pay slip and are paid out, not deducted. Furthermore, they are not part of the relevant salary, as long as they remain within standard local or industry norms, and therefore do not increase social security deductions.
The employer is obliged to provide the pay slip in writing so that you can understand all deductions. The Code of Obligations (CO) forms the basis of this obligation to provide proof.
What is deducted from salary? An overview of deductions in 2026
Four deductions appear on almost every pay slip in Switzerland, and each follows its own logic.
Deduction | Employee rate 2026 | Calculation base | Who pays it |
|---|---|---|---|
AHV/IV/EO | 5.3% | Total gross salary, no upper limit | 50/50 employee and employer |
ALV | 1.1% | Up to CHF 148,200 annual salary | 50/50 employee and employer |
BVG | 3.5 to 9.0% with a 50/50 split (age-dependent, according to pension fund regulations) | Co-ordinated salary (from CHF 22,680 entry threshold) | Employer pays at least half (Art. 66 BVG) |
NBU | Industry-dependent (example ~1.3%) | Total gross salary | Usually employee |
KTG | Typically 0.5 to 1.5% | Total gross salary | According to employment contract or CLA |
AHV/IV/EO is the largest single deduction. In 2026, the total contribution remains unchanged at 10.6%, split equally at 5.30% each for employee and employer. The compensation fund receives these contributions; the employer transfers both halves directly. There is no upper salary limit, so the rate applies to every franc of gross salary. The AHV/IV Information Centre publishes the applicable rates annually.
ALV totals 2.2% in 2026, split equally, meaning 1.1% for you as an employee. The contribution applies to salary portions up to CHF 148,200 annual salary. Since 2023, no ALV contribution is charged on salary portions above this amount.
BVG follows the most complex logic. The Federal Social Insurance Office (FSIO) sets the decisive threshold amounts: The entry threshold in 2026 is CHF 22,680 annual salary; below this, there is no BVG obligation. A co-ordination deduction of CHF 26,460 is subtracted from the annual salary to determine the co-ordinated salary. This amounts to a minimum of CHF 3,780 and a maximum of CHF 64,260 (upper salary limit of CHF 90,720 minus the co-ordination deduction). The law does not set contribution rates, but rather retirement credits that must be credited to the retirement savings account (Art. 16 BVG): 7% (ages 25 to 34), 10% (ages 35 to 44), 15% (ages 45 to 54), and 18% (age 55 to reference age) of the co-ordinated salary. Employers must contribute at least as much in total as all employees combined (Art. 66 BVG). With an equal split, this results in 3.5%, 5.0%, 7.5%, and 9.0% respectively for employees. The actual deduction depends on the regulations of the pension fund and is usually higher, as risk contributions (death, disability) and administrative costs are also financed. To learn more about how the calculation works in detail, read the article «How the BVG deduction and the co-ordination deduction are calculated».
NBU stands for non-occupational accident insurance and is borne entirely by you, provided you work at least 8 hours per week for the same employer. Suva or a private insurer covers the risk; the rate depends on the company and industry and is specified in the insurance policy. The premium for occupational accidents and occupational diseases is paid entirely by the employer; it never appears as a salary deduction.
KTG (daily sickness allowance insurance) is not mandatory by law. Whether insurance exists and how the premium is split depends on the employment contract or a collective labour agreement (CLA).
The gross-to-net difference on the pay slip can thus be summed up in a simple formula: Gross salary minus the sum of these social security deductions equals net salary. Anyone who understands Swiss salary deductions can interpret every line on the pay slip without relying on an external tool.
How do I calculate my net salary? Step by step
Anyone who knows the six steps can understand any pay slip without a calculator app.
Step: Determine gross salary
What happens: Use the agreed monthly salary as the starting point. The 13th month salary is part of the gross salary subject to AHV; allowances, commissions, and bonuses also count towards the contributory gross salary.
Rate/base: Full gross salary incl. any allowances.
Step: Deduct AHV/IV/EO
What happens: The compensation fund receives the combined contribution; you bear half. The employee share is 5.30% of the gross salary with no salary cap.
Rate/base: 5.30% of gross salary, no upper limit.
Step: Deduct ALV
What happens: The contribution only applies up to the monthly equivalent of CHF 148,200 annual salary (CHF 12,350/month).
Rate/base: 1.1% of the contributory salary portion.
Step: Deduct BVG on the co-ordinated salary
What happens: Subtract the co-ordination deduction of CHF 26,460 from the annual salary to determine the co-ordinated salary. Multiply this amount by the employee rate specified in your pension fund regulations and divide by 12. If you work on an hourly wage basis, you can find a dedicated sample calculation in «Calculating hourly wage».
Rate/base: With an equal split of the statutory retirement credits (Art. 16 BVG), 3.5% (25 to 34 yrs) / 5.0% (35 to 44 yrs) / 7.5% (45 to 54 yrs) / 9.0% (55 to reference age) of the co-ordinated salary. The applicable regulations are decisive and are usually higher.
Step: Deduct NBU
What happens: Take the rate from the employer's insurance policy. The Federal Social Insurance Office (FSIO) sets the framework conditions; the specific rate varies depending on the industry and insurer.
Rate/base: Industry-dependent; typical example approx. 1.3% of gross salary.
Step: Read net salary before taxes
What happens: The result is the net salary before income tax. Employees with a Swiss passport or C permit pay income tax separately via their tax return. Anyone without a permanent residence permit C also pays withholding tax directly via the pay slip.
Rate/base: No further deductions in standard cases.
Sample calculation: How much net remains from CHF 6,000 gross?
With CHF 6,000 gross, around CHF 5,375 net remains before income tax, because social security deductions account for approximately 10% in total.
Parameters: 30-year-old person, CHF 6,000 gross salary per month, Canton of Zurich.
Item | Rate or basis | Amount |
|---|---|---|
Gross salary | CHF 6,000 | |
AHV/IV/EO | 5.3% of gross salary | CHF 318 |
ALV | 1.1% of gross salary | CHF 66 |
BVG | Annual salary CHF 72,000 minus CHF 26,460 = CHF 45,540; employee share 3.5% / 12 | CHF 133 |
NBU | approx. 1.3% (example rate) | CHF 78 |
KTG | 0.5% (if contractually agreed) | CHF 30 |
Total deductions | approx. CHF 625 | |
Net salary before taxes | approx. CHF 5,375 |
The co-ordinated salary for the BVG calculation is CHF 45,540 per year (annual salary CHF 72,000 minus co-ordination deduction CHF 26,460). The minimum co-ordinated salary is CHF 3,780, and the maximum is CHF 64,260. At age 50, the BVG share would be noticeably higher: The employee rate increases to 7.5%, which results in around CHF 284 per month instead of CHF 133 based on the same calculation base.
Anyone holding a B permit pays withholding tax directly via the pay slip in addition. Swiss citizens and holders of a C permit pay income tax separately via the annual tax return.
What is withholding tax, and who is affected by it?
Subject to withholding tax are foreign employees without a permanent residence permit C (except when married to a person holding a Swiss passport or C permit) as well as cross-border commuters; the employer deducts the tax directly from the salary. The tariff codes (A for single persons, B for married couples with one income, C for dual-income couples, H for single parents, and others) are standardised across Switzerland, but the underlying tax rates are determined by each canton individually. For gross salaries of CHF 120,000 per year or more, a subsequent ordinary assessment with a full tax return applies. Tariffs, payroll accounting, and special cases for cross-border commuters are explained in the article «Withholding tax in Switzerland».
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