Switzerland Employee Cost Calculator
See the true cost of employing someone in Switzerland — gross salary plus an estimated 14.6% in employer social contributions.
Cost of an employee in Switzerland
Employer contribution breakdown
| Contribution | Rate | Annual amount |
|---|---|---|
| AHV/IV/EO (old-age, disability, loss of earnings) | 5.30% | — |
| Unemployment (ALV) | 1.10% | — |
| Family allowances (canton average) | 2.45% | — |
| Occupational pension (BVG, employer, typical) | 5.00% | — |
| Accident insurance (UVG) | 0.80% | — |
| Total employer contributions | 14.6% | — |
Employer costs in Switzerland
In Switzerland, statutory employer cost is roughly 13–19% on top of gross salary — AHV/IV/EO, unemployment, family allowances, the BVG occupational pension and UVG accident insurance.
- AHV/IV/EO is 5.3% (employer half) and unemployment (ALV) 1.1%, both shared with the employee.
- Family allowance contributions (employer-paid) average about 2.45%, varying by canton.
- The BVG occupational pension employer share rises with age (about 3.5% to 9% of insured salary), so the total employer rate is age-dependent.
This uses a typical mid-career BVG rate (~5%); younger workers cost less and older workers more. Family-allowance rates vary by canton. Use it for budgeting, not payroll.
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Frequently asked questions
On top of gross salary, an employer pays statutory social-security contributions — around 14.6% in Switzerland. The total employer cost is the gross salary plus those employer contributions. It does not include optional benefits, equipment, or recruitment costs.
Employers must pay mandatory social-security and payroll charges on top of the gross salary the employee sees. These fund pensions, healthcare, unemployment, and similar schemes, and they are a real, recurring cost of employment.
In most countries several contributions are calculated only up to a maximum income base, so the effective employer rate is lower for high salaries. Treat this calculator as a budgeting estimate rather than exact payroll.
Many companies use an Employer of Record (EOR) to hire compliantly in Switzerland without opening a local subsidiary. The EOR is the legal employer and handles payroll, contributions, and compliance for a monthly fee.