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How to Read a Payslip? ๐Ÿงพ๐Ÿ’ฐ

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How to Read a Payslip? ๐Ÿงพ๐Ÿ’ฐ

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 (Old Age & Survivor's Insurance, Disability Insurance & Loss of Earnings) ๐Ÿ‘ด๐Ÿ‘ต๐Ÿฅ๐Ÿ“ˆ

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 (unemployment insurance) ๐Ÿ˜”๐Ÿ› ๏ธ๐Ÿ”

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 (supplementary unemployment insurance) ๐Ÿ“ˆ๐Ÿ›ก๏ธ

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 (Accident Insurance: Occupational & Non-Occupational Rates) ๐Ÿฅ๐Ÿš‘๐Ÿ”ง

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 (daily sickness insurance) ๐Ÿค’๐Ÿ›Œ๐Ÿ’ต

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 (Pension) ๐Ÿง“๐Ÿ‘ต๐Ÿ’ฐ

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.

Withholding Tax or "Tax at Source" ๐Ÿ“„๐Ÿ’ธ

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.

How Earny Can Help? ๐Ÿค๐Ÿ’ก๐Ÿš€

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:

  1. Clarity and simplicity: At Earny, we design payslips to be clear and easy to understand. We replace complex acronyms and jargon with simple terms, providing concise explanations so that you know exactly where your money is going each month. ๐Ÿ“ƒ๐Ÿ”
  2. Comprehensive Information: We ensure you are informed about all the elements on your payslip. Our software considers the complete picture, including all contributions, taxes, and insurances, providing a comprehensive view of your monthly earnings and deductions. ๐Ÿงฎ๐Ÿ’ผ
  3. Real-time updates : Any changes in contributions, be it taxes or insurances, are immediately reflected in our system. This guarantees accuracy and transparency, allowing you to stay informed and updated about any variations in your payslip. ๐Ÿ”„๐Ÿ””
  4. Accessible support: Our customer support is ready to assist with any questions or concerns you might have regarding your payslip. We're committed to making your payroll experience as smooth and comprehensible as possible. ๐Ÿ’ฌ๐Ÿ‘ฅ

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! ๐ŸŽฏ๐Ÿ’ก๐Ÿ“ˆ

Bassil Eid
Sales Director

Sales Director ofEarny and long-time CFO working with startups.

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