Understanding a payslip can be a bit of a puzzle, especially when you're dealing with unfamiliar acronyms. If you're in Switzerland, these acronyms change based on whether you're in the French, German, or Italian part of the country. Let's demystify your Swiss payslip, diving into each acronym, its meaning, and how it affects your salary.
AHV (German), AVS (French and Italian), is a compulsory contribution deducted from your salary.
Rate: The employee and the company each pay 5.3% of the monthly salary.
Example: If your monthly salary is CHF 10,000, you and your company each pay CHF 530.
ALV (German), AC (French), AD (Italian), is an insurance you pay into that helps if you ever face unemployment.
Rate: You and your company both contribute 1.1% of your monthly salary.
Example: For a monthly salary of CHF 10,000, you and your company each pay CHF 110.
ALVZ (German), Compl. AC (French), Compl. AD (Italian), applies only to salaries that are above 148,200 CHF per year.
Rate: Both you and your company contribute 0.5% of the salary portion above the 148,200 CHF threshold.
NBUV (German), AANP (French), AINP (Italian), provides financial protection in case of occupational and non-occupational accidents.
Rates: For Occupational Accident Insurance, the company pays 0.081%. For Non-Occupational Accident Insurance, the rate is 1.168%, and the company can choose to share the cost with you.
KTG (German), IJM (French), IGM (Italian), covers a portion of your salary should you fall sick.
Rate: The rate is 1.14%, covered entirely by the company, but the company can assign a share of up to 50% to the employee.
BVG (German), LPP (French and Italian), is the pension contribution. The amount deducted for the pension is dependent on your age and salary.
Example: If the determined Pension Contribution is 597.50 CHF, both you and your company contribute half, unless your company chooses to pay more.
For employees who are not Swiss citizens or don't hold a C Permit, Withholding Tax is deducted from your salary to cover your local and Cantonal taxes.
In conclusion, payslips are more than just a note of your salary; they're a breakdown of your contributions towards taxes, insurances, and pension.
Understanding the intricacies of a payslip might seem challenging, but Earny is here to change that! As a dedicated payroll provider, we are committed to demystifying payslips and enhancing your financial awareness. Here's how Earny can assist:
At Earny, we believe your payslip is not just a document but a critical tool for financial understanding. We're here to simplify the process and help you navigate your payslip with ease and confidence! 🎯💡📈