Payslip in Switzerland

If you are working full- or part-time in Switzerland, you will receive a regular monthly payslip from your employer, which will break down your net salary and mandatory social security contributions for that month. Here’s what you need to know about receiving and reading your payslip in Switzerland. 

When will I receive my payslip? 

If you have just started a new job, you can expect to receive a payslip the first time you receive your salary.  

Interestingly, the Swiss Code of Obligations does not explicitly require employers to provide their employees with payslips - only that they must pay the agreed wages - but in practice most employers do issue their staff with payslips each month to enable them to check how much they have been paid, and how much they have contributed to various mandatory insurance schemes. 

Details included on a payslip

Your payslips will include the following details:

• Your full name
• Your date of birth
• Your address
• Your AHV number
• The period covered by the payslips
• Details of the different types of income you received
• Details of any deductions made from your salary

The Swiss payslip explained

To provide so much information on a small slip of paper, payroll departments use a lot of acronyms and abbreviations on payslips. If you’re not familiar with all of the terms, and especially if you don’t speak German, French or Italian, all of those numbers and letters can quickly become confusing. 

Here’s a breakdown of the different terms you’re likely to see on your payslip: 

Top section: Personal information

Typically, the top of a Swiss payslip will detail personal information related to your employment. Many of the common details are:

• Your name and home address
• The address of your employer
• The canton where your employer is based
• Your social security number, the number that governments and insurance firms use to calculate your social security benefits
• Date of the start of your employment
• Date of the settlement of payroll; for most Swiss companies this is around the 23rd to the 25th of each month

Middle section: Deduction breakdown

The middle section of the payslip will consist of a breakdown of your gross salary and the various social security contributions that have to be paid from it. These are:

• Your standard gross monthly wage
• Any declared overtime
• Your total gross salary for the month
• OASI/AHV – This is your contribution to the mandatory first pillar pension scheme
• BVG – This is a payment that you make toward your second pillar pension
• IV – This is your contribution to disability insurance
• UI/ALV – This is your contribution to unemployment benefits
• SUVA – This is your contribution to the Swiss National Accident Insurance Fund (SUVA), which delivers accident and occupational disease insurance

Final section: Additional information 

The final part of a payslip in Switzerland typically contains personal data about where your payslip is being paid to. Most companies now pay employees through online methods, so you will automatically receive your payment through your bank account and will receive the payslip in order to keep it on record for when you need to pay your taxes. 

Some of the things that can be found in this section are your full banking details or details of a fund that you are paying your salary to. 

Annual salary certificate in Switzerland

On top of your monthly payslips, your employer will also issue you with an annual salary certificate once per year (usually sometime between January and March). The salary certificate is a single document that summarises all of the income you have received over the past tax year, as well as all your contributions to social security. 

You may need your salary certificate to:

• Complete your tax return
• Buy a property
• Get a loan

The salary certificate is divided into two parts, the first with sections identified with the letters A through to H, and the second with the numbers 1 through to 15, as follows: 

First section of the salary certificate

The first section of the salary certificate details some important information: 

• A or B: The cross shows whether the income was from a salary (A) or a pension (B)
• C to E: The next fields show who the salary certificate has been issued to, listing your social security number and your date of birth (C), the year the certificate was issued (D), and the period of the year the certificate applies to (E) - usually January 1 to December 31, unless you switched employers during the year. 
• F: This field indicates whether your employer contributes to your commuting costs. If they do, you will not be able to claim a deduction for the cost of travel in some cantons on your tax return.
• G: This box indicates whether your employer contributes towards your meal expenses. If they do, you will not be able to claim a deduction for meal expenses on your tax return.
• H: Your personal details like your name and address. 

Second section of the Swiss salary certificate

The next section of a Swiss salary certificate provides information about your earnings and salary deductions:

1. The basic annual salary or pension you received - essentially your gross salary not including any benefits in kind or other income listed in points 2 through 7
2. The annual value of any benefits in kind you received, such as a company car, or contributions to your health insurance
3. The total sum of any bonuses you received
4. Any capital benefits you received, such as severance pay
5. The value of any shares in the company you hold 
6. Any compensation you received as a board member for a company
7. Any other income not detailed in points 1 to 6, such as tips or unemployment benefit
8. The annual (gross) salary you received 
9. Your total contributions to pension insurance, disability insurance, unemployment insurance, and other social security schemes 
10. Contributions to a 2nd pillar pension
11. The annual (net) salary you received
12. Tax deducted at source - people who are not Swiss or don’t have a type C residence permit have a portion of their salary deducted by their employer
13. Any cost allowances received
14. Any cost allowances received
15. Any final information not included in points 1 through 15