Line by line
AHV/IV/EO (5.3%): state pension and disability. ALV (1.1% up to a ceiling): unemployment. BVG/pension fund: age-tiered savings (7% at 25 → 18% at 55+, employer pays at least half). NBU: non-occupational accident, often ~1–2%. KTG: sick-pay insurance, employer-dependent.
Why net varies between jobs
Same gross, different net: pension fund plans differ enormously (mandatory-only vs. generous), KTG splits vary, and source tax applies for non-C-permit holders. When comparing offers, compare the PENSION PLAN too – it's deferred salary.
Budget from net
Build your budget on the real net figure and treat the 13th salary separately.
Track these costs in your own budget: create your free Swiss budget in BudgetHub – in English, with Swiss categories built in.
What comes off a Swiss salary, line by line
AHV/IV/EO is the state pension and disability contribution, split equally between employee and employer. Unemployment insurance (ALV) follows the same split up to an income ceiling. Occupational pension (BVG) contributions rise with age band, so the same salary produces a larger deduction at 55 than at 25 – a fact that surprises people whose net pay falls after a birthday.
Non-occupational accident insurance (NBU) is typically borne by the employee, while occupational accident cover is the employer's. Daily sickness benefits insurance (KTG) may be shared or employer-paid depending on the contract.
Together these commonly amount to roughly 12–18 % of gross pay before any income tax – which is why net salary expectations built on gross figures alone are consistently too optimistic for new arrivals.
Reading your payslip properly
Check three things every year, not every month: that the BVG deduction matches the age band shown on your pension certificate, that any child allowances (Kinderzulagen) you are entitled to actually appear, and that the source tax tariff code matches your civil status and children if you are taxed at source.
A wrong source tax tariff is the single most common payslip error affecting expats – for example a single tariff applied to someone married with children. It is correctable, and the difference over a year can be substantial.
The annual salary statement (Lohnausweis) is what the tax office sees. Keep it: it is required for the tax return, for reclaiming source tax and, years later, for reconstructing contribution records.
Gross to net, and why comparing offers is harder than it looks
Two offers with identical gross salaries can produce noticeably different net amounts, because pension plans differ: a generous employer pension contribution reduces your visible net pay while increasing your retirement capital. The apparently lower offer may be the better one.
Ask specifically about the pension plan's contribution split and insured salary, whether a thirteenth salary is included, and how accident and daily-sickness insurance are allocated. These three questions explain most of the gap between comparable-looking offers.
Then run the cantonal tax calculator for the actual commune of residence – not the workplace. In a country where communal multipliers differ substantially, the same offer is worth different amounts depending on where you live.