Payroll &
HR Administration

Last updated: April 2026 · Mueller Stöckli Treuhand AG

Swiss payroll is more complex than it looks

Every Swiss employer must withhold social insurance, remit to the correct compensation offices, manage pension fund enrolment, handle accident insurance, and produce compliant salary statements. For foreign employees, there is withholding tax (Quellensteuer). We handle all of this.

Social contributions breakdown (2025)

Contribution	Employee	Employer	Total
AHV (Old-age)	4.35%	4.35%	8.70%
IV (Disability)	0.70%	0.70%	1.40%
EO (Income replacement)	0.25%	0.25%	0.50%
ALV (Unemployment)	1.10%	1.10%	2.20%
BVG (Pension, approx.)	~7%	~7%	~14%
UVG non-occupational	~1.5%	—	~1.5%
Total employer cost above gross	—	—	~13–16%

What we provide

• Monthly payroll processing for all employee types
• Social insurance declarations (AHV/IV/EO/ALV)
• Pension fund (BVG) coordination
• Accident insurance (UVG) management
• Withholding tax (Quellensteuer) for foreign employees
• Annual Lohnausweis (salary certificates)
• ELM electronic wage reporting
• Expense management
• Payroll for family offices and domestic staff

Pricing

From CHF 50 per employee per month, minimum CHF 200/month. Fixed monthly fee regardless of complexity.

Swiss social insurance contributions (2025 rates)

Swiss payroll involves mandatory contributions to several social insurance schemes. Employers and employees each pay their share, with the employer remitting the combined amount to the relevant authorities. The figures below reflect the 2025 rates.

Insurance	Employee	Employer	Total	Notes
AHV/IV/EO (old age, disability, maternity)	5.3%	5.3%	10.6%	Split equally; no ceiling
ALV (unemployment)	1.1%	1.1%	2.2%	On wages up to CHF 148,200; solidarity surcharge above
BVG (2nd pillar pension)	varies	at least equal to employee	7–18%+	Depends on age bracket and coordinated salary
UVG non-occupational accident	~1.5% (industry-dependent)	—	~1.5%	Employer pays occupational accident; employee pays non-occupational
KTG (daily sickness benefit)	~0.5–1.5%	~0.5–1.5%	~1–3%	Statutory minimum; employer may offer more generous plan

Total employer social charges typically add 15–20% on top of gross salary, depending on the pension fund plan and industry accident insurance rates.

Quellensteuer — withholding tax for foreign employees

Foreign employees who do not hold a C residence permit and are not married to a Swiss or C-permit holder are taxed at source (Quellensteuer). The employer deducts the tax directly from the monthly salary and remits it to the cantonal tax authority — the employee receives a net salary with tax already withheld.

The withholding tax rate is set by the canton of residence and varies by gross income, civil status, and number of dependants. Canton Zug applies some of the most favourable rates in Switzerland. From 2021, employees earning more than CHF 120,000 annually may be subject to an obligatory subsequent ordinary assessment (nachträgliche ordentliche Veranlagung), and lower earners can request a voluntary correction assessment.

We calculate the correct Quellensteuer code for each employee, produce the monthly deductions, and remit to the Zug cantonal tax authority on schedule.

Payroll cycle in Switzerland

Swiss payroll runs on a monthly basis. The standard practice is to credit salaries by the 25th of each month, though the exact date is specified in the employment contract. Key year-end obligations include:

• Lohnausweis (salary certificate) issued to every employee by 31 January of the following year
• AHV/ALV contributions remitted quarterly to the cantonal compensation office (Ausgleichskasse)
• BVG premiums remitted monthly to the pension fund (Pensionskasse)
• UVG premiums remitted to the accident insurer, typically quarterly or annually
• ELM electronic wage reporting submitted to the AHV compensation office

Errors in payroll timing or coding attract interest charges and, in persistent cases, penalties from the compensation offices. Outsourcing removes this risk.

What we handle

• Monthly payroll runs and payslip generation for all employee types
• New employee registration with the AHV/IV compensation office (Ausgleichskasse)
• BVG enrolment and coordination with the pension fund
• Quellensteuer calculation, coding, and remittance to the cantonal authority
• Lohnausweis preparation and distribution by 31 January
• Family allowance (Familienzulagen) administration
• HR reporting: headcount, FTE, social charge summaries
• ELM electronic wage reporting
• Payroll for domestic staff and family offices

All payroll engagements are supervised by EXPERTsuisse certified fiduciaries.

For companies new to Switzerland, we also handle the initial registration with the cantonal compensation office before the first salary is paid — a legal requirement that applies even for a single employee. See our bookkeeping services for ongoing accounting support, or review our VAT compliance services if your business is also registered for MWST. Transparent pricing is available on our pricing page.

Frequently asked questions

What are the mandatory employer contributions in Switzerland?

Swiss employers must contribute to AHV/IV/EO (5.3%), ALV (1.1%), BVG (pension fund — varies by age and plan), UVG (occupational accident insurance), and KTG (daily sickness allowance). Total employer social charges typically add 15–20% on top of gross salary.

Do I need to register with a Swiss compensation office (Ausgleichskasse)?

Yes. Every employer in Switzerland must register with the cantonal AHV compensation office (Ausgleichskasse) before paying the first salary. Registration is required even for a single employee. We handle the registration as part of our payroll onboarding.

How does Quellensteuer work for foreign employees?

Employees without a C residence permit or a Swiss spouse are taxed at source. The employer deducts Quellensteuer from the monthly salary and remits it directly to the cantonal tax authority. The rate is set by canton and varies by income bracket, civil status, and number of dependants. The employer bears administrative responsibility for correct coding and timely remittance.