Optimizing Social Security Contributions in French-speaking Switzerland: Practical Guide for SMEs and the Self-Employed (2025)

Social security contributions are a significant cost item for SMEs and the self-employed. Between the LPP, AVS/AI/APG, unemployment insurance, LAA, or family allowances, understanding the rates and optimizing your salary structure are essential for controlling expenses. This 2025 guide offers practical advice, updated comparisons by canton and activity, and the traps to watch out for.

1. Overview of Mandatory Social Security Contributions in Switzerland (2025 Update)

For an SME or self-employed person, social security contributions include:

• AVS/AI/APG (1st pillar)
• LPP (2nd pillar, occupational pension plan)
• Accident insurance (LAA)
• Unemployment insurance (AC)
• Family allowances

NOTE: Rates may vary depending on canton, activity, and status (employee, self-employed, main or secondary activity, etc.).

2. 2025 Social Security Contribution Rates by Canton and Activity

AVS/AI/APG Rates (Employers and Self-Employed)

• Employers/Employees: 10.6% (split equally, 5.3% each in 2025)
• Self-employed: progressive rate from 5.371% to 10.6% (depending on income)

Unemployment Insurance (AC)

• Employers/Employees: 2.2% up to CHF 148,200/year, then 1%
• Self-employed: not subject (no mandatory AC)

LAA (Accident Insurance)

• About 0.7% to 2% (occupational accidents, employer-paid)
• 0.9% to 2% (non-occupational accidents, employee-paid)
• Self-employed: private subscription strongly recommended

Family Allowances (cantonal values)

• Geneva 2025: minimum CHF 300.–/month/child
• Vaud 2025: minimum CHF 260.–/month/child

For specialized and updated rates, consult the CSL and cantonal offices

3. Practical Tips to Manage and Optimize Social Security Contributions

Smart Salary Structuring

• Dividend vs. salary: for shareholder-managers, arbitrating judiciously while remaining legal.
• Secondary activities: official multiple employer form, risks of under-reporting.

Correct Declaration of Calculation Bases

• Common errors: forgotten bonuses, undeclared expenses, mistakes on LPP payroll or incorrect enrollments.
• Best practices: use the cantonal funds' contribution simulator at the beginning of each year.

Adapting Choice of Institutions

• Compare LPP costs by provider (conversion rates, management fees, and risk coverage).
• Pool affiliations if multiple sites or presence in several cantons.

Specific Measures for the Self-employed

• Optional LPP pension: often overlooked, but offers targeted tax benefits according to article 319 CO.
• Take out loss-of-earnings and disability insurance to maintain business plan viability.

Concrete Example: Geneva SME

• SME with 10 employees, payroll CHF 800,000
• Combined mandatory contributions (AVS/AI/APG, AC, maternity, LAA, minimum LPP): around 20–22% of annual total depending on fund and profiles, excluding allowances.
• Optimization: by selecting an LPP provider with superior coverage but low admin fees (CHF 750 saved/year), and by reclassifying meal allowances as actual expenses, the SME saves about CHF 5,000/year.

4. Pitfalls to Avoid and Checks to Make (2025)

• Incorrect declaration of a family beneficiary or employee with dual activity (risk of adjustment by Suva).
• Failure to take out a more comprehensive or appropriate LAA policy for actual risks (e.g., construction occupations).
• Not including all components of the determining salary (overtime, bonuses, etc.).

5. Best Practices for Internal Audit and Ongoing Optimization

• Schedule an annual audit with your fiduciary (structure check, LPP affiliation, annual certificates, retroactive corrections).
• Keep documents up to date: payslips, insurance contracts, cantonal forms.
• Tools to try: official social security simulator, online LPP rate comparator, information on bsv.admin.ch and ch.ch

For any questions or a personalized audit, contact Ark Fiduciaire. Master your social security contributions, gain insight into your costs, and ensure compliance for fiscal year 2025.