Gross vs net salary in Switzerland: how the math really works

A Swiss offer of CHF 8,000 a month looks impressive. But the amount that lands in your account is noticeably lower, and the gap catches almost every newcomer off guard. Here is what gets deducted, in what order, and why your net pay still hides a cost that never shows up on your payslip.

Social contributions, taken straight off the gross

Three mandatory deductions leave before you ever see your salary. They are the same across all of Switzerland.

• AVS / AI / APG: roughly 6.25% of gross on the employee side. This covers old-age, disability and loss-of-income insurance. Your employer matches it.
• Unemployment insurance (AC): 1.1% up to around CHF 148,000 of annual salary.
• LPP, the second pillar: occupational pension. The rate depends on your age and fund, usually 7 to 9% of the so-called coordinated salary. The employer pays at least half. On a gross of CHF 8,000, these three lines already remove several hundred francs each month.

Withholding tax, if you do not hold a C permit

If you are a foreigner without a settlement permit (C permit) and without a Swiss spouse, your employer deducts tax directly from your pay. The rate depends on your canton of residence and your family situation, sorted into tariff codes: A for a single person, B for a single-income couple, C when both partners work. One thing to know: above roughly CHF 120,000 in annual income, you automatically switch to an ordinary tax return the following year. The amount withheld then becomes a down payment, not a final settlement.

The real trap: the LAMal premium is not on your payslip

Here is what no one explains clearly enough. Basic health insurance is mandatory in Switzerland, but its premium does not appear on your payslip. It is a separate monthly bill from your health fund, between CHF 300 and 500 per adult depending on the canton and the deductible you choose. The consequence is direct: your stated net salary overstates the money you can actually spend. A net of CHF 6,500 quickly drops to CHF 6,000 once the premium is paid, and far lower once rent is gone.

A worked example, in rough figures

Take a gross of CHF 8,000 a month, single, taxed at source.

1. Gross: CHF 8,000
2. Less AVS/AC: about CHF 590
3. Less LPP: about CHF 500
4. Less withholding tax: variable, say CHF 700
5. Net on the payslip: about CHF 6,200
6. Less LAMal premium (off-payslip): about CHF 400 That leaves around CHF 5,800 before rent. These are orders of magnitude. Your exact figures depend on your canton, age and fund, to be checked on estv.admin.ch and priminfo.admin.ch.

From net salary to what you actually keep

What really matters is not the net on the payslip. It is your disposable income: what stays once rent, the LAMal premium, transport and taxes are paid. Two offers at the same gross can leave you with very different amounts depending on the town you live in. That is exactly what our questionnaire calculates: from your gross, your situation and your town, it estimates what truly stays in your budget each month. 👉 Estimate your real disposable income in a few minutes.