How to Calculate Your Net Salary in Switzerland: Complete Guide 2026

You moved to Switzerland or you are thinking about it. You got a job offer with a gross salary of 80,000 CHF per year. Sounds like a lot, but after all deductions, how much actually lands in your account each month? The answer is not straightforward — it depends on your canton, age, marital status, and even your religion.

This guide walks you through every deduction on your payslip, how much each one costs, and how to calculate your net salary with a practical example. At the end, you will find the HelviNav salary calculator to run the numbers for your own situation.

What Is Gross Salary and Net Salary?

Gross salary (Bruttolohn / salaire brut) is the amount you agreed with your employer. Net salary (Nettolohn / salaire net) is what you receive after mandatory social contributions and taxes are deducted.

In Switzerland, deductions fall into three main groups:

Social security (AHV/IV/EO) — the first pillar, mandatory for everyone

Pension fund (BVG) — the second pillar, mandatory above a certain salary

Taxes — source tax for foreigners, or cantonal taxes for Swiss and C permit holders

On top of that, there is unemployment insurance (ALV), accident insurance (UVG/LAA), and possibly daily sickness benefit insurance (KTG) if your company has a collective plan.

AHV/IV/EO — The First Pillar (Social Security)

AHV (old-age and survivors insurance), IV (disability insurance) and EO (loss of earnings insurance) form the foundation of Swiss social security. They are mandatory for all employees, including foreigners with a B or L permit.

AHV (Old-age/Survivors): 4.35% employee + 4.35% employer

IV (Disability): 0.70% employee + 0.70% employer

EO (Loss of earnings): 0.25% employee + 0.25% employer

Total AHV/IV/EO: 5.30% employee + 5.30% employer = 10.60%

The total rate of 10.60% applies to the full gross salary with no upper cap since 2024 (the CHF 88,200 cap was abolished for AHV).

Official source: ahv-iv.ch — Beitragssätze | bsv.admin.ch

ALV — Unemployment Insurance

Unemployment insurance (Arbeitslosenversicherung / Assurance-chômage) covers you if you lose your job. The rate is the same for everyone:

Up to CHF 148,200/year: 1.10% employee + 1.10% employer = 2.20%

Above CHF 148,200/year: 0.50% employee + 0.50% employer = 1.00% (solidarity contribution on the excess)

The CHF 148,200 threshold (2024 value, adjusted periodically) defines the solidarity contribution for higher salaries. Below this, you pay 1.10%; above, you pay 0.50% on the excess.

Official source: seco.admin.ch — ALV

BVG — The Second Pillar (Pension Fund)

BVG (Berufliche Vorsorge / Prévoyance professionnelle) is mandatory retirement savings. It works like an account managed by a foundation or insurance company, where you and your employer deposit a percentage of your salary every month.

Not all of your salary counts for BVG. The contribution applies to the coordinated salary, which is your gross salary minus the coordination deduction (CHF 25,725 in 2024).

Coordination deduction: CHF 25,725

Minimum rates vary by age. The employer pays at least half:

Ages 25–34: 7% total (3.50% employee + 3.50% employer)

Ages 35–44: 10% total (5.00% employee + 5.00% employer)

Ages 45–54: 15% total (7.50% employee + 7.50% employer)

Ages 55–65/64: 18% total (9.00% employee + 9.00% employer)

Practical example: If you are 35 with a gross salary of CHF 80,000, the coordinated salary is 80,000 − 25,725 = CHF 54,275. The total BVG contribution is 10% of that, or CHF 5,427/year. Half (CHF 2,714) comes out of your salary.

Important note: Many companies have BVG plans above the legal minimum — higher rates, lower coordination deductions, or more generous employer contributions. Your employment contract or pension fund regulations will tell you exactly what applies.

Official source: bsv.admin.ch — BVG

Accident Insurance (UVG/LAA)

Accident insurance is mandatory for all employees in Switzerland. It has two parts:

Occupational accidents (including commuting): paid entirely by the employer

Non-occupational accidents: deducted from your salary, typically 1.0% to 1.5%

The employer pays the full premium for occupational accidents. For non-occupational coverage, the rate depends on the insurance company and your risk category. This is always listed on your payslip.

Official source: Suva | bsv.admin.ch — UVG

Sickness Daily Benefit Insurance (KTG)

Sickness daily benefit insurance (Krankentaggeld / Indemnités journalières) is not mandatory under federal law, but many cantons require companies to have collective coverage for sick days. When it exists, the cost is typically shared between employee and employer, with rates between 0.5% and 1.5%.

Source Tax (Quellensteuer)

If you hold a B or L permit and are not a Swiss citizen, tax is deducted directly from your salary — this is called source tax (Quellensteuer / Impot a la source).

The source tax rate depends on several factors:

Gross salary — the more you earn, the more you pay

Canton of residence — each canton has its own tax table

Marital status — single, married, divorced

Children — deductions per child

Religion — in Switzerland, the church also collects tax

Source tax already includes federal direct tax, cantonal tax and municipal tax. It replaces the annual tax return in most simple cases (single salary, no significant wealth).

Tip: You can simulate your source tax on your canton website. Some cantons offer free online simulators.

Official source: estv.admin.ch — Quellensteuer

Step-by-Step Practical Example

Let us calculate the net salary for an employee with these details:

Gross annual salary: CHF 80,000

Age: 35

Permit: B (source tax)

Canton: Vaud

Marital status: Single, no children

Religion: None (no church tax)

BVG: Legal minimum

Accident insurance (non-occupational): 1.0%

Step 1: AHV/IV/EO

80,000 CHF × 5.30% = 4,240 CHF/year (353 CHF/month)

Step 2: ALV (Unemployment)

80,000 CHF is below the 148,200 CHF threshold, so: 80,000 × 1.10% = 880 CHF/year (73 CHF/month)

Step 3: BVG (2nd Pillar)

Coordinated salary: 80,000 − 25,725 = 54,275 CHF. Rate (age 35): 10%. Total contribution: 54,275 × 10% = 5,428 CHF/year. Employee half: 2,714 CHF/year (226 CHF/month)

Step 4: Accident Insurance (non-occupational)

80,000 × 1.0% = 800 CHF/year (67 CHF/month)

Step 5: Total Social Deductions

AHV/IV/EO: 4,240 CHF/year (353 CHF/month)

ALV: 880 CHF/year (73 CHF/month)

BVG: 2,714 CHF/year (226 CHF/month)

Accident: 800 CHF/year (67 CHF/month)

Total social deductions: 8,634 CHF/year (719 CHF/month)

Step 6: Source Tax

For a salary of 80,000 CHF, single, no children, canton of Vaud, no religion, the source tax rate is approximately 12.8% (check the official table of your canton for the exact rate).

Source tax: (80,000 − 8,634) × 12.8% ≈ 9,135 CHF/year

Final Result:

Gross annual salary: 80,000 CHF

Social deductions: − 8,634 CHF

Source tax: − ~9,135 CHF

Net annual salary: ~62,231 CHF

Net monthly salary: ~5,186 CHF

So from a gross salary of 80,000 CHF, you take home about 5,186 CHF per month — a total retention rate of about 22%.

Use the HelviNav Salary Calculator

Running these calculations with the exact rates for your canton is much easier with a calculator. The HelviNav net salary calculator does the full calculation with:

Updated rates for your canton

BVG based on your age and plan

Source tax by canton and marital status

Comparison between cantons

Frequently Asked Questions

Is accident insurance always mandatory? Yes, for all employees in Switzerland. Occupational accidents are paid by the employer, non-occupational accidents are deducted from your salary.

What happens if I move to a different canton? Your source tax changes because each canton has its own tax rates. Your employer updates the rate automatically when you change your residence.

Do I need to file a tax return even with source tax? In most simple cases (single salary, no extra income), no. But if you have significant wealth, investment income, or a complex family situation, you may need to file. In some cantons, filing can help you get some tax back.

Is BVG portable? Yes. When you change jobs, your accumulated BVG capital is transferred to the new pension fund. If you leave Switzerland, you can withdraw the cash value (be aware of the tax implications).

What is the 13th salary? Many Swiss contracts include a 13th salary. It equals one month of gross salary and is subject to the same social deductions.

Official Sources

AHV/IV — Informationsstelle AHV/IV

BSV — Federal Social Insurance Office

SECO — State Secretariat for Economic Affairs

ESTV — Federal Tax Administration

Suva

HelviNav — Salary Calculator

The rates shown in this guide are the legal rates in force in 2026. Each individual case may vary depending on the canton, pension fund, and company collective insurance plans. Check the exact rates in your employment contract and the official sources listed above.