SWITZERLAND Law and Practice Contributed by: Philippe Nordmann, Marion Bähler, Dario Glauser, Christian Hagen and Samuel Lieberherr, Walder Wyss Ltd
and municipality of residence, with top marginal wealth tax rates varying between approximately 0.1% and 1.0% above a certain threshold, which is usually tax-free. Levied on the gross income, the “state pension” covers old-age and survivors’ insurance, disabil - ity insurance, and loss of earnings compensation in case of (military or similar) service, maternity, parenthood, caring for a seriously ill child and adoption. Social security 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 indi - vidual 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 contribu - tions). Employees earning above a certain annual threshold (CHF22,680 from 2025) are required to join the employer′s pension scheme. Manda - tory pension schemes are limited to a maximum annual salary (CHF90,720 from 2025), above which the employer 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 employ - ee. 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-occu - pational accidents. 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. Daily sickness benefits insurance contributions For a limited period, the employer is obligated to continue 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, subject to the indi - vidual insurance contract. Social health insurance premiums Though mandatory for all Swiss residents, social health insurance is a private matter for each employee unrelated to the employment relationship. The employer is not obligated to contribute, nor is it customary that the employ - er 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 employees who are: • non-tax residents (in Switzerland); or
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