The year 2025 marks a turning point for payroll management in Geneva and throughout French-speaking Switzerland, with significant reforms for employers and self-employed individuals concerned with compliance and tax optimization.
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New AVS/LPP/family allowance ceilings and rates From January 2025, the increase in the AVS ceiling, revaluation of family allowances (215 CHF per child, 268 CHF minimum for education), and the adjusted LPP affiliation threshold require immediate update of payroll bases and software. Employees reaching retirement age (women: 64 years and 3 months if born in 1961) must choose their contribution exemption before receiving their first 2025 salary.
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Electric vehicles and expense regulations Employers must now include the cost of home charging stations in the taxable and social security salary, excluding this amount from the 0.9% lump-sum reduction calculation. Mileage allowances for business expenses are still possible, with supporting documentation or approved internal policy, directly impacting tax returns and salary certificates.
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Cross-border remote work: transitional scheme 2025 The Switzerland-France transitional agreement on remote work is extended until December 31, 2025. For Geneva, up to 40% of annual activity can be performed remotely from France without tax impact for employer or employee: the salary is fully taxed in Geneva. The company must, however, provide an annual certificate and inform employees of the rules and rights (LPD, taxation, social security, A1). Above this threshold, the French system applies for the salary portion concerned: close attention is needed when planning activity.
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Profitability, salary negotiations, and trends for Q4 2025 Nominal salaries are rising (+1.4% on average, higher in high-demand sectors) but often do not offset inflation (health premiums +6% on average in Geneva). Adjustments are closely watched in healthcare, retail, and hospitality. Employers need to anticipate these constraints in their pay policy and update their 2026 social budget accordingly.
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2025 compliance checklist and best practices
- Check and update all payroll parameters from January (rates, ceilings, allowances)
- Inform and document AVS franchise choices, LPP, expense rules, cross-border certificates
- Monitor cross-border remote work (threshold monitoring, issuance of A1 certificates, tax transparency)
- Keep informed on cantonal developments (allowances, taxation)
- Consider outsourcing or digitization (Swissdec, Odoo payroll, etc.) to reduce risk of error and optimize compliance
For real-time updates and secure social management, support from a Geneva specialist or outsourcing via approved tools remains recommended.