SWITZERLAND Law and Practice Contributed by: Philippe Nordmann, Marion Bähler, Christian Hagen, Samuel Lieberherr and Dario Glauser, Walder Wyss Ltd
Daily sickness benefits insurance contributions For a limited period, the employer is obligated to con - tinue paying the salary if an employee is prevented from working due to illness. The employer may take out insurance to cover this risk and agree with the employee to bear up to 50% of the contributions, sub - ject to the individual insurance contract. Social health insurance premiums Though mandatory for all Swiss residents, social health insurance is a private matter for each employee unre - lated to the employment relationship. The employer is not obligated to contribute, nor is it customary that the employer contributes, to its employees′ social health insurance premiums. Taxes Applicable to the Employer With regard to general taxation, please see 5.2 Taxes Applicable to Businesses . In addition, a wage source tax in the amount of the income tax owed is levied and withheld by the employer from the salary of employ - ees who are: • non-tax residents (in Switzerland); or • neither Swiss citizens nor holders of a permanent residency permit nor married to a Swiss citizen. Social security contributions The employer′s portion of 5.3% is to be paid directly by the employer in addition to the gross salary (from which the employee′s portion of an additional 5.3% is deducted and directly paid to the social security authority by the employer). Occupational pension contributions As with employees, these contributions are usually split 50:50, with at least 50% being borne by the employer. Unemployment insurance contributions As with employees, these contributions are usually split 50:50, with at least 50% being borne by the employer. Occupational and non-occupational accident insurance contributions Occupational accident insurance is mandatory for all employees working in Switzerland and must be borne
Levied on the gross income, the “state pension” cov - ers old-age and survivors’ insurance, disability insur - ance, and loss of earnings compensation in case of (military or similar) service, maternity, parenthood, car - ing for a seriously ill child and adoption. Social secu - rity contributions are split 50:50 between employee and employer, with the employee’s portion amounting to 5.3% of the gross salary and being deducted and directly paid by the employer. Occupational pension contributions Contributions to the occupational pension scheme(s), to be established or acceded to by the employer for its employees, are determined by the specific pension scheme based on individual factors (such as age and insured salary) and are usually split 50:50 between employee and employer (the employee′s portion may in any case not exceed 50% of the total contributions). Employees earning above a certain annual thresh - old (CHF22,680 from 2025) are required to join the employer′s pension scheme. Mandatory pension schemes are limited to a maximum annual salary (CHF90,720 from 2025), above which the employ - er may establish or accede to a voluntary pension scheme. Unemployment insurance contributions Providing certain compensation for a limited period in case of unemployment, weather-induced loss of working hours, short-time work and non-payment in case of the employer′s insolvency, the contributions amount to 2.2% of the gross salary not exceeding CHF148,200 and are split 50:50 between employer and employee. No contributions are due for a gross salary above CHF148,200. Non-occupational accident insurance contributions Employees working at least eight hours per week are mandatorily insured against non-occupational acci - dents. The contributions depend on the individual insurance contract and are usually borne entirely by the employee, deducted from the employee’s gross salary and directly paid to the insurance by the employer.
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