Source tax for foreign employees
Foreign workers without a C settlement permit pay income tax via source tax (Quellensteuer/impôt à la source), withheld monthly by the employer using cantonal tariff tables. The tariff depends on marital status (A: single, B: married single earner, C: married dual earner, H: single parent), number of children and gross salary.
For salaries above CHF 120,000/year, an annual tax return (TOU — taxation ordinaire ultérieure) is mandatory and can result in additional tax due or a refund. From 2021, employees below that threshold can also opt for ordinary taxation if it's beneficial — usually the case for high pension contributions, alimony or major medical expenses.
Employer's total cost: more than just the gross
For every CHF 100 of gross salary, the employer pays roughly CHF 115–118 fully loaded: matching social charges (~6%), pension contribution (~6–10%), occupational accident insurance (BU, 0.1–1.5% depending on industry), family allowance contribution (1.2–3.5% by canton), and continued-pay insurance (KTG) commonly 0.5–1.0%.
Add holiday pay accrual (8.33% of gross for 4 weeks' leave) and a 13th-month salary (8.33% if granted), and the true budgeted cost of a CHF 100,000/year hire in Switzerland is CHF 130,000–138,000. The EuroCalc employee cost calculator builds this stack canton by canton.
Calculate your net salary
Enter gross, canton, age and family status to see your full Swiss payslip breakdown for 2026 — gross to net, plus the employer's loaded cost.
Open the payroll calculator →Frequently asked questions
Why does my net salary differ from my colleague's at the same gross?+
Pension fund age band (younger = lower contribution), canton of residence (different source tax tariffs and NBU rates), and family situation (married/children adjust tariff and AHV) all change the net.
What's the difference between AHV and pension fund?+
AHV (1st pillar) is the state pay-as-you-go pension, capped at modest benefit levels. The pension fund (2nd pillar / LPP/BVG) is mandatory occupational savings funded by employee and employer contributions, individual to your account. Together they target ~60% income replacement; Pillar 3a tops up to 75–80%.
Is the 13th-month salary taxed at a higher rate?+
No, it's added to your annual gross and taxed on the cumulative annual amount. Source tax tariffs are pre-calculated to spread the 13th-month evenly across 12 monthly deductions.
How do I check my employer's payroll is correct?+
Each payslip should show year-to-date totals for AHV, ALV (capped), pension fund and source tax. At year-end you receive a Lohnausweis (salary certificate) — verify the totals match. Errors are most common around bonuses, expatriate allowances and unpaid leave.
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The social-insurance stack
Five federal social insurances are deducted from every Swiss salary: AHV (state pension, 4.35% employee + 4.35% employer = 8.7% total), IV (disability, 0.7% each), EO (loss-of-earnings, 0.25% each), ALV (unemployment, 1.1% each up to CHF 148,200/year), and NBU (non-occupational accident, fully employee-paid, typically 0.8–1.4%).
Add pension fund contributions (LPP/BVG): the legal minimum is age-banded, from 7% (age 25–34) to 18% (age 55–65) of the 'coordinated salary' (salary between CHF 22,680 and CHF 90,720 in 2026, split 50/50 employer/employee). Most employers offer better-than-minimum schemes, with total contributions of 14–22% of coordinated salary.