Working in Switzerland - Remuneration

Wages and salaries in Switzerland are currently still determined on the basis of seniority. However, employers in both the public and the private sector are increasingly adopting the system of performance-related pay. Women’s pay is in general lower than men’s, irrespective of qualifications, but both the politicians and the social partners are constantly working to eliminate this differential.

Social security contributions deducted at source by employers in Switzerland are generally lower than in the majority of European countries. Net pay (i.e. gross pay less social security contributions deducted for occupational benefit schemes, unemployment benefit, insurance, etc.) is therefore higher in Switzerland than in other European countries, although overall the cost of living in this country is also higher than in the rest of Europe. Social security deductions from pay total some 15%. Income tax, calculated on the basis of net pay, is also about 15%.

A standard pay certificate does not exist in Switzerland. The kind of certificate used varies according to canton of residence, the firm concerned, remuneration level, etc. However, certain items must always be included, such as gross pay, contributions to old age and survivors’ insurance (AHV/AVS), invalidity insurance (IV/AI), loss-of-earnings insurance (LAV/APG/IPG), unemployment insurance (ALV/AC/AD), accident insurance (UV/LAA/LAINF) and the ‘second-pillar’ benefit fund (BUV/LPP). See the Related Topics and links opposite for more information.

• Salary calculator
• Prices and Earnings 2006

Text last edited on: 04/2008

Source: European Union
© European Communities, 1995-2008
Reproduction is authorised.