AHV. BVG. Quellensteuer. Swiss payroll, owned.
Swiss payroll demands three-pillar social insurance architecture with AHV/IV/EO first pillar at 10.6%, BVG second-pillar occupational pension managed per-fund, and Quellensteuer withholding tax engine handling 26-canton rate tables for B, L, and G permit holders, plus ALV unemployment insurance, NBUV accident premium, annual Lohnausweis salary certificate, and cross-border Grenzgänger compliance. Most providers handle AHV. Mercans handles all three pillars — on a single proprietary stack with no intermediaries.
native payroll
vs nearest peer
since inception
- Federal Income Tax top
- 11.5% federal + cantonal
- AHV/IV/EO (ER)
- 5.3% of gross salary
- AHV/IV/EO (EE)
- 5.3% of gross salary
- BVG/LPP (ER, typical)
- ~7.5% of coordinated salary
- ALV Unemployment ER
- 1.1% (cap CHF 12,350/mo)
- Quellensteuer (expats)
- Source tax at cantonal rates
- 13th Month Salary
- Common; contractual
- AHV Deadline
- Monthly (by end of month)
- Annual Leave
- 4 weeks minimum (5 if <20)
- Minimum Wage
- Cantonal (Geneva CHF 24.32/hr)
Getting Switzerland payroll “mostly right” is the most expensive mistake
Quellensteuer Tariff Code Errors
Quellensteuer (source tax) withholding depends on the correct tariff code combining civil status (single/married), number of dependent children, dual-earner status (both spouses working), and church membership. An incorrectly assigned tariff code results in systematic under- or over-withholding.
BVG Under-Insurance — Coordinated Salary Errors
The BVG (Berufliche Vorsorge) coordinated salary is gross annual salary − CHF 25,725 coordination deduction, capped at CHF 62,475/year. Employers who apply the wrong coordination deduction — or use gross salary without the deduction — generate incorrect BVG contribution.
Grenzgänger Permit — Cross-Border Notification Failures
Cross-border workers (Grenzgänger) resident in Germany, France, Austria, or Italy and working in Switzerland hold a G permit and are subject to specific bilateral treaty rules. German-resident Grenzgänger: 80% of Quellensteuer receipts are transferred to Germany under the DBA (Doppelbesteuerungsabkommen.
Lohnausweis — Annual Salary Certificate Errors
The Lohnausweis (salary certificate, Form 11) must be completed for every employee annually, covering all salary components, BIK benefits, expense reimbursements, and share-based income. Cantonal tax authorities use the Lohnausweis as the primary income verification document.
The three types of providers who struggle with Switzerland
Route through local Swiss payroll bureaus. No native Quellensteuer engine — cantonal tables applied by local partner. BVG management typically requires separate pension fund provider coordination. Lohnausweis via local tool.
- ×Partner Quellensteuer
- ×Manual BVG coord.
- ×Bureau Lohnausweis
Abacus, Sage 200, Crésus: robust Quellensteuer and AHV/ALV integration. Limited multi-country or multi-canton centralisation for large employers. BVG managed separately with pension fund. No global payroll consolidation.
- ×Quellensteuer native
- ×AHV/ALV automated
- ×BVG separate system
Fully managed Swiss payroll with native 26-canton Quellensteuer engine, AHV/IV/EO + ALV on every run, BVG coordinated salary calculation, NBUV premium management, and annual Lohnausweis — all in-platform with global consolidation.
- ×Native Quellensteuer
- ×BVG managed
- ×Lohnausweis auto
The only provider that closes every gap
From 26-canton Quellensteuer to BVG second-pillar management, AHV/IV/EO first pillar, Grenzgänger treaty handling, and Lohnausweis generation — Mercans owns every layer of Swiss payroll on a single contract.
G2N Nova™ — Native 26-Canton Quellensteuer Engine
Mercans’ proprietary G2N Nova™ engine applies the correct cantonal Quellensteuer rate table per employee, including tariff code (civil status + children + dual-earner + church), municipality supplement, and canton-specific filing format. AHV/IV/EO at 5.3%/5.3% applied on gross with no ceiling. BVG coordinated salary calculated with age-band rate and employer ≥50% co-financing verified.
Switzerland-based payroll specialists
Mercans operates a Switzerland-resident payroll team of AHV-certified specialists with expertise in cantonal Quellensteuer, BVG pension fund coordination, Grenzgänger treaty compliance, and Swissdec/EDIA NG Lohnausweis filing. German- and French-speaking account managers with direct cantonal authority relationships.
DSG & nDSG data compliance
Swiss payroll data is governed by the revised Federal Act on Data Protection (nDSG), in force since September 2023, which aligns Swiss data protection with GDPR standards. AHV social insurance numbers and cantonal tax data require strict handling under nDSG. Mercans holds BCR approval, ISO 27701, SOC 1 & 2, and ISO 27017/27018. Zero security breaches since inception.
Where Mercans wins on every Switzerland-specific capability
Each row is a Swiss payroll capability. Each cell shows native coverage as a fill bar — full = native in-platform, half = partial / manual workaround, empty = gap.
Switzerland Capability Coverage · 10 dimensions
Tariff code · monthly withholding · annual reconciliation
Coordinated salary · age-band rates · ≥50% ER rule
No ceiling AHV · ALV cap CHF 148,200
DE/FR/AT/IT · border canton vs non-border
EDIA NG format · cantonal submission · 31 Jan
B-permit · annual NOV trigger · Quellensteuer credit
≥8h/week threshold · SUVA · premium deduction
Civil status change · children · dual earner updates
Monthly accrual · AHV + BVG impact · December payment
DPA · AHV number handling · RPA
Every rate. Every cap. Every obligation.
Switzerland’s 2025–26 payroll framework combines AHV/IV/EO first-pillar at 10.6%, mandatory BVG occupational pension with coordinated salary calculation, ALV unemployment insurance up to CHF 148,200, NBUV accident premium, and Quellensteuer withholding across 26 cantonal rate tables. Mercans tracks every ESTV, AHV, and cantonal update without manual reconfiguration.
Switzerland · Rate & Compliance Dashboard
Live 2025–26BVG Coordinated Salary — Mandatory vs Super-Mandatory
BVG mandatory coverage applies to gross salaries CHF 22,050–88,200/yr. Coordinated salary = gross − CHF 25,725 coordination deduction (minimum CHF 3,675/yr). Pension funds (Pensionskassen-Reglement) typically set rates above BVG minimums. Employers must contribute ≥50% of total premium; most funds split 60% ER / 40% EE. BVG minimum interest rate on retirement assets (2025): 1.25%.
→ BVG min CHF 22,050/yr → CHF 88,200/yr · employer ≥50% · 1.25% minimum interestQuellensteuer — Tariff Codes & Annual Rectification
Quellensteuer tariff codes encode civil status (A = single, B = married single earner, C = married dual earner, H = single with children), dependent children, and church membership. Communal supplement cantons need the employee’s municipality.
→ Tariff code: civil status + children + church · NOV mandatory above CHF 120k/yrGrenzgänger — Franco-Swiss Agreement
Under the 1983 Franco-Swiss Grenzgänger Agreement, employees resident in France working in border cantons (AG, BL, BS, BE, JU, NE, SO, VD, VS) are taxed only in France; employers must hold a valid French Frontalier certificate. Workers in non-border cantons (ZH, ZG, LU) face Swiss Quellensteuer. German-resident Grenzgänger: 80% of receipts transferred to Germany.
→ Franco-Swiss: border cantons tax in France only · non-border cantons: CH QuellensteuernDSG — Revised Swiss Data Protection Act
The revised nDSG (Federal Act on Data Protection), in force 1 September 2023, requires a Record of Processing Activities (RPA) for payroll. AHV numbers and health data are sensitive personal data. Processors need a Data Processing Agreement under nDSG Art. 9. Non-compliance carries penalties up to CHF 250,000 targeting the responsible individual, not the company.
→ nDSG September 2023 · DPA required · CHF 250k individual penalty · RPA mandatorySee your real Swiss payroll cost in real time
AHV/IV/EO, ALV, BVG second pillar, NBUV, and Quellensteuer (or ordinary assessment) — calculated live as you move the slider.
Switzerland Payroll Cost Calculator
LIVEWhat only Switzerland experts know to handle
These are the compliance details that don’t appear in standard payroll setup guides — but appear in every audit and labour inspection we’ve encountered in Switzerland over 20 years.
Quellensteuer — 26 Canton Tables
Monthly source tax withheld using the correct cantonal rate table and tariff code per employee. Tariff code determined by civil status, number of qualifying children, dual-earner household indicator, and church membership. Annual rectification (NOV) managed for eligible high-income B-permit holders. Swissdec EDIA NG format for electronic cantonal submission.
AHV / IV / EO & ALV
First-pillar contributions: AHV (state pension) + IV (disability) + EO (earnings replacement) combined at 10.6%, split 5.3% EE / 5.3% ER on gross earnings with no salary ceiling. ALV (unemployment insurance) at 2.2% (1.1% each) up to CHF 148,200/year. Monthly remittance to Ausgleichskasse. AHV individual account (IK) kept current.
BVG / LPP 2nd Pillar
Occupational pension contribution on coordinated salary (gross minus CHF 25,725 coordination deduction). Age-band rates applied: 7% at 25–34, 10% at 35–44, 15% at 45–54, 18% at 55–64 (indicative BVG minimums). Employer must contribute 50%+ of total BVG amount. Super-mandatory contributions above CHF 88,200/yr tracked per fund rules.
Lohnausweis & Swissdec
Annual salary certificate (Lohnausweis, Form 11) generated per employee covering all income components, BIK benefits, expense allowances, company car private use, and share-based income. Filed with cantonal tax authority by 31 January. Swissdec EDIA NG electronic format for direct tax authority submission.
One workforce. Two entirely different compliance tracks.
Swiss payroll splits into two primary tax tracks: Swiss nationals and C-permit holders subject to ordinary cantonal and federal tax assessment (Ordentliche Veranlagung), and B, L, and G permit holders subject to Quellensteuer withholding at source. Both tracks share identical AHV/BVG/ALV social insurance obligations but the income tax mechanism — and the associated compliance process — is completely different.
Parallel Compliance Engines
(Ordinary Assessment)
AHV/IV/EO: 5.3% EE + 5.3% ER applied on full gross salary with no ceiling. Monthly remittance to the employer’s Ausgleichskasse. No income tax withheld from salary by employer — employee files cantonal + federal tax return directly.
BVG 2nd pillar (occupational pension) mandatory for employees earning ≥CHF 22,050/year. Contributions on coordinated salary at age-band rates. Employer funds ≥50% of total premium. Pension fund year-end certificate (Vorsorgeausweis) issued.
ALV 1.1% EE + 1.1% ER on insured salary up to CHF 148,200/year. Employer submits annual ALV declaration to Ausgleichskasse alongside AHV.
Lohnausweis (Form 11) annual salary certificate filed with cantonal tax authority by 31 January. Covers all salary, BIK, expense allowances, and share-based income. Employee uses it for cantonal + federal tax return.
NBUV + KTG insurance NBUV non-occupational accident premium deducted for workers ≥8h/week. Employer pays BU (occupational accident) premium. KTG sickness daily allowance coverage typically via employer group policy.
(Quellensteuer)
Quellensteuer monthly withholding employer withholds cantonal + federal income tax at source using the canton’s published rate table and employee’s tariff code. Rate includes federal + cantonal + communal taxes in a single combined percentage.
Tariff code management tariff code must be updated when civil status, number of children, dual-earner status, or church membership changes. Employer is responsible for obtaining updated personal information from employee annually.
Annual cantonal Quellensteuer filing employer files monthly Quellensteuer returns and an annual reconciliation with the cantonal tax authority. Format varies by canton; Swissdec EDIA NG standard applies in most cantons.
NOV for B-permit earning ≥CHF 120k/yr since 2021, B-permit holders earning ≥CHF 120,000/year must complete an ordinary tax assessment (NOV). Quellensteuer withheld through the year is credited against the assessed liability. Employer continues to withhold.
Grenzgänger treaty overlay G-permit holders (cross-border workers): Franco-Swiss agreement may eliminate Quellensteuer in border cantons. German DBA Grenzgänger: 80% of Quellensteuer transferred to Germany. Employer must verify and apply correct treatment.
Switzerland payroll compliance calendar
Key AHV, cantonal tax, BVG, and ESTV deadlines for 2025–26.
2026
Lohnausweis Submission Deadline
Annual salary certificates (Lohnausweis, Form 11) for all employees must be filed with the relevant cantonal tax authorities by 31 January 2026. Covers tax year 2025 salary, BIK benefits, expense allowances, company car usage, and share-based income.
month
AHV / ALV Monthly Remittance
Monthly AHV/IV/EO and ALV contributions (employer + employee) must be remitted to the employer's Ausgleichskasse by the 10th of the following month. AHV employer declaration (Lohnbescheinigung) filed annually; provisional monthly payments made on estimated basis and reconciled at year-end. Late AHV payments incur default interest.
2026
Quellensteuer Annual Reconciliation
Annual Quellensteuer reconciliation filed with each canton for all source-tax employees. Corrects any under- or over-withholding from monthly payments. Format and deadline vary by canton: most cantons require submission in January or February.
2025
13th Month Salary Payment
Switzerland has no statutory 13th month salary nationally, but most collective labour agreements (GAV/CCT) and employment contracts specify a 13th month payment in December (or split June/December).
Switzerland is one market.
Mercans covers all of Central Europe on one platform.
From Switzerland to Germany, Austria, France, and the broader EU — Mercans delivers native payroll across every major Central European jurisdiction on a single contract, with consolidated multi-country reporting and a single point of contact.
covered
1 contract
consolidation
Central Europe
Every filing. Every format. Submission-ready.
Mercans generates the exact file types that ESTV, AHV/IV, SUVA, cantonal authorities expect to receive.
