What social security contributions must I pay in Switzerland?

How much of my salary is deducted towards social security contributions and what do I get for my money?

In Switzerland, you can expect to spend 6.25 % of your salary on social security contributions. Actual contributions are close to double that percentage, but your employer covers half of most premiums. Typically, social security contributions are deducted from your salary and forwarded to a social security office by your employer.

The biggest premium is deducted for old-age and survivors insurance (AHV/AVS). This premium is equivalent to 8.4% of your salary, but half of it (4.2%) is covered by your employer so only 4.2% of your salary is deducted to cover your share of the premium. Old-age and survivors insurance provides you with a basic pension as well as possible supplementary benefits after you reach retirement age.

Disability insurance (IV/AI) premiums are equal to 1.4% of your salary. You and your employer each pay half, so 0.7% of your salary is deducted to cover your share of the premium. Disability insurance provides you with a pension if you become disabled.

The equivalent of 0.5% of your salary is charged in premiums for loss of earnings insurance (EO/APG). You pay half of this (0.25% of your salary) and your employer pays the remaining 0.25%. This insurance compensates you for income lost due to military service obligations or maternity leave.

Unemployment insurance (ALV/AC) commands a premium equal to 2.2% of your salary. You pay a premium equal to 1.1% of your salary, while your employer pays a premium equal to 1.1% of your salary. A lower 1% premium applies to the portion of your salary which exceeds a certain limit (this cap varies between cantonal social security offices). Unemployment insurance pays out a benefit equal to 70% of your salary. The term over which you receive unemployment benefits depends on the length of time over which you contributed to social security.

If you live in the Canton of Valais, a contribution to the child benefits scheme equal to 0.3% of your income will be deducted from your salary. In the rest of Switzerland this premium is covered by your employer or, if you are self-employed, directly by you. If you ever have one or more children, this scheme pays out a monthly subsidy for each child.