Understanding Your Payslip: Deductions, 13th Month Salary, Salary Certificate

Every payslip follows the same structure: gross salary minus social insurance deductions minus other deductions gives the net salary.

• AHV/IV/EO: 5.3 percent of gross salary, borne half by the employee and half by the employer.
• ALV: 1.1 percent up to the maximum salary of the unemployment insurance; the rate applies to the employee and employer share, each half.
• NBU: non-occupational accident insurance, premium depending on the company and insurer, usually borne by the employee.
• BVG: occupational pension, from the entry age and above the coordination deduction; the employee share is set out in the pension fund regulations.
• KTG: daily sickness benefit insurance, if the company has a collective solution.

These deductions are based on statute or contract – if one is missing, that points to an incomplete payslip.

The 13th month salary is not required by law but is widespread in Switzerland. What matters is how it is paid out.

• Pro rata: if you join or leave during the year, the 13th is calculated proportionally – usually on the basis of the months worked.
• Payout: at the end of the year, in two instalments or monthly as one twelfth – all common, but regulated in the contract.
• Holiday pay: only with an hourly wage or on leaving; with a monthly salary, holidays are included in the salary.
• Public holiday pay: common with an hourly wage, and it varies by canton and company.
• Supplements: night, Sunday and overtime supplements must be shown separately.

The salary certificate is the document that matters for tax – the monthly payslip is only the interim statement.

• Figure 1: gross salary including benefits in kind and participations.
• Figure 2: AHV/IV/EO and ALV contributions.
• Figure 3: BVG contributions (employee share).
• Figure 4: NBU premiums.
• Figure 5: expenses – only what is not recognised as an expense allowance counts as salary.

Check the salary certificate against the December payslip: the totals must match, otherwise one of the two is wrong.

The most common payroll errors are mechanical and repeat month after month.

• BVG deduction too early or too late: the deduction starts with the entry age under the pension fund regulations, not with the first day of work.
• Wrong AHV rate for apprentices: a reduced rate without ALV contribution applies to apprentices up to a wage threshold.
• Missing supplements: night and Sunday work require supplements where there is no equivalent compensation.
• Holiday deduction in the final month: with a monthly salary, holiday pay must not be deducted twice.
• Withholding tax: for people subject to withholding tax, the tariff code must match the current situation – marriage, change of job, residence status.

Proceed in four steps – and in writing:

1. Gather the documents: contract, recent payslips, any agreements on allowances.
2. Ask: a short email to HR with the exact difference and the calculation you expect.
3. Set a deadline: a reasonable deadline of two weeks helps to speed things up.
4. Escalate: if the difference remains, the cantonal labour courts are responsible or – for social insurance questions – the compensation office.

Important: salary claims are time-barred after five years, from the date on which the salary fell due. Do not wait too long.

Anyone who understands their own payslip negotiates more precisely. Three starting points:

• Gross is not net: for budget planning the net salary counts – reckon with 12 to 18 percent deductions.
• Assess supplements: a lower base salary with high supplements can bring in more net than a higher fixed salary.
• BVG benefits: a higher insured salary improves retirement benefits – relevant for long-term planning.

For the job interview it is enough to know your target gross salary and to have your own payslip as a reference.