New social security rates announced
Social security contribution rates are generally adjusted every other year in line with the economic situation and salary trends. The latest amendments came into force on 1 January 2013.
Social insurance contributions 2013
|Social insurance sector||Contributions as percentage of earned income||Contributions by insured not in gainful employment|
|Contributions in favour of the employee||Contributions by the self-employed||in CHF per year|
|OASI||4.20%||4.20%||8.40%||4.200% – 7.800%1||392||19,350|
|IV||0.70%||0.70%||1.40%||0.754% – 1.400%1||65||3,250|
|EO||0.25%||0.25%||0.50%||0.269% – 0.500%1||23||1,150|
|FZ6||–7||between 0.1% and 4.0%6||between 0.1% and 4.0%6||6||–||–|
- The contribution rate depends on the level of earned income. The first rate applies to an income level up to and including CHF 9,400, the second for an income of at least CHF 56,200 (a “degressive contribution scale” is applied to intermediate income levels).
- Max. insured income: CHF 126,000 per annum. UI: A UI contribution of 1.0% is applied to salary incomes between CHF 126,000 and CHF 315,000. OA; NOA: average gross premium rate (2010). Premiums calculated acco rding to the risk. Separate rules apply to part-time workers.
- The self-employed may also contribute to this voluntary insurance scheme.
- Individuals who are employed for less than 8 hours per week are not insured against non-occupational accidents. For the unemployed, the contribution rate is 2.63%.
- Estimated (pension fund statistics, 2010) in % of the insured salary (max. CHF 835,200). Contributions are set by the insurance funds.
- Regulations vary across cantons.
- Valais is the only canton where it is compulsory for employees to pay 0.3% (since 1st January 2002).
Source: Federal Social Insurance Office
Mandatory Social Security Contributions
Employers are subject to the following mandatory social security contributions:
1. Old-age and surviving dependents, disability and loss of income fund and maternity insurance (OASI, DI and EO)
10.3% of employment income (salary and other payments and benefits).
2. Unemployment insurance (UI)
The employer must pay into the mandatory unemployment insurance (ALV) for each employee, 2.2% of employment income up to a maximum of CHF 126’000 per annum and 1% of employment income between CHF 126’000 and CHF 315’000
3. Mandatory accident insurance (OA and NOA)
The employer is solely liable for the insurance premiums covering occupational accidents and diseases and cannot make any deductions from the employees’ salaries to cover these. The premiums covering non-occupational accidents are paid by the employee. The maximum amount of income that can be insured is CHF 126’000 per annum.
4. Family allowances (FA)
The employer is required to pay between 0.1 and 4% of employment income in respect of family allowance (FZ). Again, the employer cannot make any deductions from employees’ salaries.
5. Occupational benefit plan (PP)
Both the employer and the employee contribute to the occupational benefit plan (pension scheme). The employer’s contribution must at least equal the contribution paid by the employee. All employees with an annual salary in excess of CHF 21’060 must be insured under the occupational benefit plan. The amount of annual salary between CHF 24’570 and CHF 84’240 must be insured. This part of the salary is referred to as the “coordinated salary”. The minimum coordinated salary is CHF 3’510. The employer must be affiliated to an approved pensions provider. Each provider sets its own contribution rates.
The employer is required to register newly hired employees with the cantonal Compensation Office within one month of their start date. Where it is unclear whether a contractual relationship is based on self-employment or employment, the employer should contact the local Compensation Office for clarification.
Federal Social Insurance Office
For further information or to discuss any of the issues raised, please contact Stefanie Monge or Eva Scheifele on +41 44 220 12 12 at Poledna Boss Kurer, Zurich.
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