Net salary in Switzerland: what you'll actually take home
Most Swiss employees keep roughly 75-85% of gross salary after AHV/IV/EO (5.3%), 2nd-pillar pension (3.5-9% age-banded), unemployment (1.1% up to CHF 148,200), non-occupational accident insurance and - on a B/L permit - withholding tax. Higher earners in high-tax cantons land closer to 65-70%, as of 2025.
Overview
Swiss payslips look unfamiliar at first. There are no income-tax columns for permanent residents, but for B/L permit holders the employer withholds cantonal tax directly. Knowing which deductions apply lets you negotiate the offer and budget realistically.
Decoding your Swiss payslip
- 1
AHV/IV/EO - 5.3% employee share
Old-age, disability and income-compensation insurance. Mandatory from age 17 on employed income, 18 on self-employed income. No ceiling on the contribution base.
- 2
2nd pillar (BVG) - 3.5% to 9% by age
Mandatory occupational pension for employees earning above CHF 22,680. Rate steps up with age (7% from 25-34, up to 18% from 55-65, split with employer). Many funds offer richer 'super-mandatory' plans.
- 3
ALV - unemployment insurance
1.1% on the first CHF 148,200 of annual salary, then 0.5% on the excess (as of 2025). Employer matches it.
- 4
NBU - non-occupational accident
Typically 1-2%, paid by you. Covers accidents outside work; employer covers occupational accidents.
- 5
Withholding tax (Quellensteuer / impôt à la source)
Applies on B and L permits and to cross-border commuters. Rate depends on canton, marital status, children and church affiliation - typically 6-25% of gross.
- 6
Run a personalised calculation
Generic estimators miss canton, commune, age and tariff. Use a Swiss salary calculator that includes your real parameters to avoid a CHF 10,000+ surprise.
Frequently asked questions
How much tax do I pay on a CHF 120,000 salary in Switzerland?+
A single B-permit holder in Zurich on CHF 120,000 typically pays around 10-13% withholding tax (~CHF 13,000-15,500), plus social charges of roughly 10-12%, leaving CHF 92,000-95,000 net annually (as of 2025).
Does my employer pay the pension or do I?+
Both. BVG contributions are split at minimum 50/50; many employers pay 60-70% of the total. Your share is deducted from gross salary and appears on the payslip.
Is the 13th-month salary standard in Switzerland?+
Very common but not legally mandatory. When offered, gross annual salary is typically divided into 13 payments, with the 13th paid in November or split between June and December.
Why is my first payslip lower than expected?+
Three usual reasons: withholding tax is calculated on the annualised salary so a partial first month is taxed at a higher rate; pension contributions kick in immediately; and non-occupational accident insurance may be deducted retroactively.
Can I deduct anything from withholding tax automatically?+
Standard deductions (professional expenses, basic insurance, child allowances) are built into the tariff. For pillar 3a, large pension buy-ins or property purchases, file a tax adjustment (NOV) by 31 March of the following year.