Income taxes are levied in Switzerland, both by the federal government (federal tax) and cantons and municipalities (state and local taxes). As each of the 26 cantons has its own tax rate, taxation varies.
Compulsory insurances
The Swiss pension system is based on three pillars. All contributions are deducted directly from wages except Pillar 3. These additional private schemes are voluntary and are designed to close individual gaps in provision. The law promotes pension savings in Pillar 3 through tax incentives.
Compulsory accident insurance covers accidents at work, occupational sickness and non-occupational accidents; however, the latter are only covered if the employee is employed at least 8 hours per week.
Payroll deductions
| Old Age and Survivors‘ Insurance AHV/IV/EO |
5.125% |
| Unemployment Insurance ALV, up to CHF 126,000 |
1.10% |
| Solidarity surcharge from CHF 148,200 |
0.50% |
Non-occupational accident insurance, up to CHF 148,200
|
0.80% |
| Occupational pension (age-dependent) |
max. 10.84% |
Basic health insurance is obligatory for all persons residing in Switzerland and covers all basic healthcare services. Obtaining insurance is not the responsibility of the employer. Contact with an insurance company is individual and must be done by the person to be covered.