Understanding your Swiss pay slip and taxes

If you are working in Switzerland, your monthly salary might look quite different on paper than what you expected. Between deductions, insurances and taxes, it is not always obvious where your money is going. This guide breaks down the key elements of a typical Swiss pay slip and provides an overview of how income tax works depending on your status.

Note: this article applies to private sector employees and most public sector roles in Switzerland. If you work for an international organization as an international civil servant, your payroll and tax conditions are governed by the rules of that organization. Swiss social security and tax regulations generally do not apply.

What is on a Swiss pay slip?

Swiss pay slips can vary depending on your employer and canton, but they usually follow a similar structure. Below are the most common components.

• Salaire brut: your gross salary, meaning the total amount agreed upon in your contract before any deductions.
• Cotisations sociales (social security contributions): mandatory deductions that cover various insurances. They include:
  • AVS (assurance vieillesse et survivants): the state pension system
  • AI (assurance invalidité): disability insurance
  • APG (allocations pour perte de gain): compensation for maternity or paternity leave, and civil or military service
  • AC (assurance chômage): unemployment insurance
• LPP (prévoyance professionnelle): your occupational pension, also known as the second pillar. It is based on your salary and age bracket and is a key part of the Swiss retirement system.
• Assurance indemnité journalière en cas de maladie: daily sickness allowance insurance. Not required by law, but often included in employment contracts. If offered, your share of the premium is typically deducted here.
• AANP (assurance accident non professionnel): covers accidents outside of work. It is mandatory if you work more than 8 hours per week and is usually paid by the employee.
• Salaire net: your net salary, meaning the amount transferred to your bank account after deductions.

Other common line items may include:

• Allocations ou remboursements: contributions toward meals, public transport or professional expenses.
• Indemnités ou primes: bonuses, overtime or other forms of compensation above base salary.
• Taux d’activité: your employment percentage, for example 100 percent or 80 percent.

How Swiss income tax works

Switzerland has a multi-level tax system, and your obligations depend on your residence status and type of employment.

Taxed at source (imposition à la source)

If you are a foreign national without a C permit, your employer usually deducts income tax from your salary every month. This is called taxation at source. The amount depends on your marital status, number of children, gross income and canton of residence.

In most cases, no additional tax declaration is required. However, if your income is above a certain threshold or you want to claim deductions, you may be asked (or allowed) to file a full tax return.

Standard tax declaration

Swiss citizens and C permit holders are required to file a tax declaration every year. You declare your total income and assets, both in Switzerland and abroad, and receive a tax bill based on the assessment.

Each canton has its own deadlines and online platforms for filing tax returns.

Special case: legitimation card holders

If you work for an international organization and hold a legitimation card, your tax situation depends on your card type:

• Category B, C, D, E, L: usually exempt from Swiss income tax. No tax return is required unless you have other taxable income in Switzerland, such as rental income or side jobs. You will not be sent a tax form unless you voluntarily register with the tax office (e.g. for property ownership or tax on Swiss income from a secondary activity).
• Category S (Swiss nationals): required to file a full Swiss tax return, even if your income from the international organization is not taxed.
• Category H: must register with the cantonal tax office. You are usually subject to standard Swiss tax rules and may need to file a yearly declaration.

Common questions

Do I need to file a tax return if I am taxed at source?
Not always. For most foreign employees taxed at source, the deduction is final. But you may need to file if your income is above a set threshold or if you want to claim deductions such as childcare or third pillar pension contributions.

Can I reduce my tax burden by filing a declaration?
Yes. Depending on your situation, you may be eligible for deductions that reduce your tax bill. These can include health insurance premiums, commuting costs, childcare expenses or contributions to retirement plans.

What if I work for an international organization and also earn other income in Switzerland?
You may need to register with the tax office and file a declaration. The exemption applies only to income from international civil service. Other Swiss income is generally taxable.

Need help with taxes?

Swiss tax rules can be complex, especially if you have just moved, are taxed at source but want to claim deductions, or have special circumstances such as income from an international organization and other sources in Switzerland. In these cases, it is often worth contacting a fiduciaire (a licensed tax advisor or accounting firm) to help you understand your obligations and prepare your tax return. Many offer fixed prices for standard declarations.