Motivated by the recent UK government budget in which employer payroll taxes are being increased, I realise I have no idea how things work here in Switzerland.
Does anyone have a good understanding of all the different taxes/insurances that employers have to pay? I’m interested in the full package, i.e. if I am being employed and paid X CHF, how much on top of X is my employer paying without me realising it?
In Switzerland there are no taxes withheld on your salary(**), apart from that the company has to pay different social taxes, as do you [1]:
Here is an example calculation:
** Except if you are taxed at source.
[1] You employ a domestic help: Do you know these abbreviations? AHV, IV, EO, ALV, FAK and VK - quitt.
Thank you, that answers my question perfectly!
Rule of thumb salary ranges for salary ranges that qualify for 2nd pillar:
Your cost to the employer is whatever you get paid out as salary plus 30 %.
If i did my maths right, the example above has the additional employer costs, excluding Pensionskasse, summing to 8.7325%
Minimal pensionskasse contributions by the employer range from 3.5% to 9% depending on age.
So range would be roughly 12.2% to 17.7%
Where do you get 30% from?
My employer pays (according to them, so take it with a grain of salt) about 17.5%.
I think what’s missing up there is Krankentaggeld.
The employer doesn’t have to provide it because it’s optional. That’s why it’s not in there.
Oh really! I had no idea! Thank you!
I calculated what I said, but apparently it was ambiguous.
What I meant was: Your cost to the employer is: Amount that lands in your bank account + 30 %. It’s a rule of thumb.
In the example above it would be roughly 31 %.
It of course depends on how generous your 2nd pillar is and on the presence of a KTG.
