Introduction to Social Contributions for Swiss Employers
In Switzerland, social contributions are a fundamental pillar of the social security system. For employers, proper management of these contributions is not only a legal obligation but also a sign of good human resources management. This practical guide helps you understand and apply the rules in force for 2026, detailing rates, elements subject to contributions, management tools, and best practices to adopt.
What are the employer's obligations regarding social contributions?
The employer must:
- Declare all employees to the AVS (Old Age and Survivors Insurance), AI (Disability Insurance), APG (Loss of Earnings Allowances), unemployment insurance (AC), LPP (occupational pension), and accident insurance (LAA).
- Deduct the employee's share from the gross salary and pay the employer's share.
- Pay the contributions within the deadlines to the various funds.
- Keep payroll, deductions, and payment documents up to date.
- Provide an annual salary certificate to each employee.
Checklist of main obligations:
- Affiliation to all mandatory social insurances
- Correct salary declaration
- Timely payment of contributions
- Retention of supporting documents
- Issuance of salary certificates
(source: Employer obligations - Social insurance law)
Overview of Social Contribution Rates by Canton (2026)
Social contribution rates vary by sector and canton. Here is a summary table of the main rates applicable in 2026 for the cantons of Geneva, Vaud, and Zurich (indicative values, excluding special cases).
| Contribution Type | Geneva | Vaud | Zurich |
|---|---|---|---|
| AVS/AI/APG | 10.60% | 10.60% | 10.60% |
| Unemployment insurance (AC) | 2.20% | 2.20% | 2.20% |
| LPP (pension) | 7-18%* | 7-18%* | 7-18%* |
| Accident insurance (LAA) | 1-3%** | 1-3%** | 1-3%** |
| Family allowances | 2.45% | 2.10% | 1.60% |
| Administration fees | 0.10% | 0.10% | 0.10% |
*Depending on age and chosen plan. **Depending on sector and risk.
(source: Overview of social insurance contributions)
AVS/AI/APG Contribution
The AVS/AI/APG contribution is mandatory from the first franc of salary. It is split equally between employer and employee (5.3% each for 2026).
Unemployment Insurance (AC) Contribution
The standard rate is 2.2% (1.1% employer, 1.1% employee) up to CHF 148,200 annual salary. An additional solidarity rate applies above this threshold.
LPP and Occupational Pension Contribution
The LPP contribution rate varies depending on the employee's age and the fund's regulations. It applies to the coordinated salary (portion between CHF 25,725 and CHF 88,200 in 2026).
Mandatory Accident Insurance (LAA)
Professional accident insurance is paid by the employer. Non-professional accident insurance is usually deducted from the employee's salary if they work more than 8 hours/week.
Family Allowances, APG, and Administration Fees by Canton
Each canton sets the rate for family allowances. APG and administration fee rates are harmonized at the federal level.
| Family allowance (2026) | Minimum monthly amount |
|---|---|
| Geneva | CHF 300 |
| Vaud | CHF 250 |
| Zurich | CHF 200 |
(source: Overview of social insurance contributions)
How to Calculate Social Contributions for Your Employees?
The calculation of social contributions is based on the gross salary subject to contributions and the applicable rates. It is important to distinguish between salary elements subject to contributions and those that are not.
Salary Elements Subject to Contributions
Subject to contributions:
- Base salary
- Bonuses, gratuities
- Vacation allowances
- Benefits in kind (housing, vehicle, meals)
- Overtime
Not subject to contributions:
- Reimbursement of actual expenses
- Insurance allowances
- Family allowances
Checklist of elements to verify:
- Have all salary elements been included?
- Have benefits in kind been correctly valued?
- Are expense reimbursements excluded from the calculation?
Use of Tools like Swissdec and Other Software
Tools like Swissdec standardize salary declarations and automate contribution calculations. These software solutions facilitate multi-cantonal management and reduce the risk of errors.
Advantages:
- Automatic rate calculation
- Generation of salary certificates
- Electronic transmission to funds
(source: Swissdec – Salary declaration standards)
What are the Penalties for Non-Compliance with Social Obligations?
Non-compliance exposes the employer to:
- Contribution reminders with late interest
- Administrative fines up to CHF 30,000
- Criminal prosecution in case of fraud
- Exclusion from public contracts
In case of error, it is imperative to quickly correct declarations and regularize payments.
Best Practices for Employers
Concrete Examples of Optimizing Contribution Management
- Centralize payroll management: Use Swissdec-certified software to avoid omissions and harmonize processes.
- Regularly check rates: Verify cantonal rates and LPP thresholds annually.
- Train HR staff: Ensure employees know the rules and deadlines.
- Outsource management: Use a fiduciary to save time and reduce risks.
Practical Case (CHF)
Situation:
- Employee in Geneva
- Gross monthly salary: CHF 6,000
- Age: 35 years
- Dependent child
Calculation of monthly social contributions (2026):
| Contribution | Employee rate | Employer rate | Employee amount (CHF) | Employer amount (CHF) |
|---|---|---|---|---|
| AVS/AI/APG | 5.3% | 5.3% | 318 | 318 |
| AC | 1.1% | 1.1% | 66 | 66 |
| LPP (avg. 10%) | 5% | 5% | 300 | 300 |
| LAA (prof., 1.5%) | 0% | 1.5% | 0 | 90 |
| LAA (non-prof., 1%) | 1% | 0% | 60 | 0 |
| Family allowances | 0% | 2.45% | 0 | 147 |
| Administration fees | 0% | 0.1% | 0 | 6 |
| Total | 744 | 927 |
Net salary paid to employee: CHF 6,000 – 744 = CHF 5,256
Total employer cost: CHF 6,000 + 927 = CHF 6,927
Steps for Proper Management of Social Contributions
- Identify mandatory insurances according to activity and canton
- Affiliate with the relevant funds (AVS, LPP, LAA, AC)
- Declare employees from the first day of work
- Calculate contributions based on gross salary and current rates
- Deduct the employee's share from the salary
- Pay the total contributions (employer + employee share) to the funds
- Keep payroll records up to date
- Prepare and issue salary certificates at year-end
Common Errors and How to Correct Them
| Common error | Consequence | Recommended correction |
|---|---|---|
| Omission of a salary element subject to contributions | Contribution reminder | Check the exhaustive list of elements |
| Incorrect application of cantonal rates | Over- or under-contribution | Update rates annually |
| Late payment of contributions | Interest and fines | Set up follow-up alerts |
| Non-declaration of an employee | Criminal sanctions | Declare immediately and regularize |
| Use of non-certified software | Calculation errors | Choose Swissdec software |
Correction checklist:
- Annual review of rates and thresholds
- Payroll slip control
- Verification of fund affiliations
- Payroll software updates
FAQ Frequently Asked Questions about Social Contributions in Switzerland
1. Which salaries are subject to AVS contributions? All salary elements, including bonuses and benefits in kind, are subject to AVS contributions, except for reimbursement of actual expenses.
2. How to choose the AVS compensation fund? The employer must affiliate with the compensation fund of the canton where they are domiciled or conduct their main activity.
3. Are interns and apprentices subject to the same contributions? Yes, from age 17, they are subject to the same contributions as other employees, except for legal exceptions.
4. What to do in case of a change of canton of activity? Check the applicable rates in the new canton and inform all relevant funds to adapt affiliations and declarations.
5. Can a contribution declaration error be corrected? Yes, it is possible to correct a declaration by contacting the relevant fund and providing the necessary supporting documents.
6. What are the benefits of outsourcing contribution management? Outsourcing ensures compliance, optimizes administrative management, and provides specialized advice.