Old Age and Survivors' Insurance (AHV) contributions: employers, employees, self-employed people
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AHV contributions: How much do employers, employees, and self-employed people pay?

For employees, the employer pays half of the AHV contributions. Self-employed people have to dig deeper into their pockets, since they have to pay the full contributions themselves. How high are the different salary deductions? 

Overview of AHV contributions

Employers and employees

Total contributions for people with an annual salary of up to CHF 148,200:

Old Age and Survivors' Insurance (AHV)

8,40 %

Federal Disability Insurance (IV)

1,40 %

Income replacement (EO)

0,45 %

Unemployment insurance (ALV)

2,20 %

Total

12,45 %

   
From an annual salary of over CHF 148,200, the unemployment insurance rate for the amount of the salary above CHF 148,200 is only 1.00% instead of 2.20%.

Who pays how much?

Employers and employees each pay half of the contributions.

  • Up to an income of CHF 148,200, they each pay 6.225%.
  • For the amount of the salary above CHF 148,200, the employee's and employer's shares are 5.625% each.

The employer deducts the percentage from the employee's salary and transfers it together with its own half directly to the relevant compensation office or the unemployment insurance. Any additional administrative costs are covered by the employer. These rules also apply for owners of their own joint-stock company or limited liability company, since they are considered employees in their own company in this case.

Simplified payroll accounting

The simplified payroll accounting approach was introduced to combat illicit work. It is used in particular for simplified payroll accounting of employees who only work a few hours per month for an employer; for example, cleaning staff in private homes. The following requirements must be met:

  • The employees' salary must not exceed CHF 21,330 per year.
  • The total payroll of the company must not exceed CHF 56,900.
  • The salaries of all employees must be calculated using the simplified approach.
  • The company must not be a corporation (joint-stock company, limited liability company).
  • Spouses and children of the employer are excluded.

Self-employed people

Total contributions for people with an annual salary of over CHF 56,900:

Old Age and Survivors' Insurance (AHV)

7,80 %

Federal Disability Insurance (IV)

1,40 %

Income replacement (EO)

0,45 %

Total

9,65 %

   
Self-employed people have to pay the full contributions themselves. They also cannot take out unemployment insurance (ALV).

Total contributions for people with an annual salary of up to CHF 56,900:

  • Old Age and Survivors' Insurance (AHV) contributions for an annual income below CHF 56,900 are calculated on a sliding contribution scale. The scale consists of 18 levels and begins at an annual income of CHF 9,500 with a contribution rate of 5.196%. It ends at the regular rate of 9.65% for an annual income of at least CHF 56,900. 
  • For annual incomes of less than CHF 9,500, the minimum AHV contribution of CHF 482 must be paid. 
  • For annual incomes of CHF 2,300 or less, the payment of AHV contributions is voluntary. 
  • The compensation offices also charge administrative cost contributions of a maximum of 5% of the contributions on gainful employment income.

How settlement works for self-employed people:

  • Settlement takes place according to net income of the tax assessment for the relevant contribution year.
  • For the current year, provisional partial invoices (payments on account) are determined every quarter, based on an assumption of predicted income. The compensation office must be informed if the income changes significantly or if the contributions paid are found to be too low when the financial statements are produced. Otherwise, interest on arrears may be charged.
  • Once the definitive tax assessment and therefore the definitive net income for a year is available, the final settlement of the AHV contributions takes place.

Do you have any questions?

Arrange a personal consultation
If you have any questions about your AHV retirement pension or the three-pillar system, we will be happy to help. Please call us at 0844 200 114 or arrange a personal consultation.