AHV contributions on salaries in 2026: what employers and employees pay

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Anyone who employs staff in Switzerland, including an entrepreneur who draws a salary from his own company, has to deal with contributions to the first pillar from the first salary payment onwards. In 2026 the combined rate for old-age and survivors' insurance (AHV), disability insurance (IV) and income compensation (EO) is 10.6 % of salary, split equally between employer and employee and levied without any upper limit. This article explains the rates, the employer's duties to deduct and remit, the payment deadlines and the special rules for small salaries, working pensioners, owner-managers and foreign employers. Further articles in this series deal with secondments and with the personal liability of directors.

The contribution rates for 2026

The Federal Act on Old-Age and Survivors' Insurance (OASIA; German: AHVG) sets the contributions of employees and employers as a percentage of salary, and because the employer pays the same share as the employee, the total burden is shared equally (Art. 5 para. 1 and Art. 13 OASIA). Unemployment insurance (ALV) is a separate branch of social insurance, but it is collected through the same payroll process and is therefore shown here for context.

Up to the ALV ceiling, the total payroll burden for these branches therefore amounts to 12.8 %. The ALV ceiling of CHF 148,200 per year is taken from the official leaflet as of 1 January 2025 and, like the other figures in this article, is adjusted periodically. On top of the contributions themselves, the compensation office charges administrative cost contributions, which may not exceed 5 % of the contributions.

No ceiling for AHV/IV/EO

Whereas the ALV contribution stops at the ceiling, the AHV/IV/EO contributions of 10.6 % are levied on the entire salary, however high it may be. Executives and owner-managers with large salaries are often surprised by this, since the old-age pension itself is capped at a maximum amount; the contributions above the level needed for the maximum pension therefore serve the solidarity of the system and do not increase the individual's pension. The pension amounts are explained in the article on the AHV old-age pension in 2026.

What counts as salary

Contributions are due on salary in the broad sense, which covers salary and other remuneration paid for work performed as an employee. The label the parties give to a payment is therefore of limited relevance, because what matters is whether it remunerates work. Where an employer intends to pay components that do not fit the usual pattern of a monthly salary, it is advisable to clarify their treatment with the compensation office before payment, since corrections at a later audit lead to back-payments together with interest.

Joining a compensation office

Every employer with an establishment in Switzerland is obliged to pay contributions (Art. 12 OASIA) and must join a compensation office (Ausgleichskasse). This is either the cantonal compensation office or, where the employer is a member of a trade or industry association that runs its own office, the compensation office of that association. Newly founded companies should register as soon as they employ their first staff, including a director who receives a salary.

Deduction and remittance

The employer deducts the employee's share from every salary payment and remits it to the compensation office together with its own employer share (Art. 14 para. 1 OASIA). The employer thus acts as a collecting agent for the employee's contributions, which explains why the law treats a failure to remit them with particular severity. The Federal Act makes it a criminal offence, among other things, to deduct employee contributions from wages and use them for other purposes (Art. 87 OASIA), and the employer as well as, for companies, the members of the board and the persons involved in management may be held personally liable for unpaid contributions (Art. 52 OASIA). This liability is explained in detail in the article on the personal liability of directors and managers.

Payment periods, deadlines and interest

Contributions are paid monthly as a rule. Employers whose annual payroll does not exceed CHF 200,000 may pay quarterly (Art. 34 para. 1 lit. a Ordinance on Old-Age and Survivors' Insurance, OASIO; German: AHVV). In either case the contributions are due within 10 days after the end of the payment period (Art. 34 para. 3 OASIO). If payment is late, the compensation office charges late-payment interest of 5 % per year, and it does so regardless of whether the employer is at fault. For a company whose cash flow fluctuates, it is therefore sensible to treat AHV contributions as a priority liability.

Small salaries up to CHF 2,500

Where an employee earns no more than CHF 2,500 per year from a particular employer, contributions on that salary are levied only if the employee requests it (Art. 34d OASIO). This exception does not apply to household staff and to employees in the arts and media, for whom contributions are always due. The rule simplifies administration for occasional small engagements, but an employee who wants to avoid gaps in his contribution record may ask for contributions to be paid.

Employees past the reference age

Gainfully active persons continue to pay contributions as long as they work, even after reaching the reference age of 65 (Art. 3 para. 1 OASIA). For these employees, however, an allowance applies, so that contributions are levied only on the part of the salary exceeding CHF 16,800 per year or CHF 1,400 per month per employer (Art. 4 para. 2 lit. b OASIA, Art. 6quater OASIO). The employee may waive the allowance in order to improve his pension (Art. 6quater para. 5 OASIO), which can be worthwhile where earlier contribution years are missing.

The owner-manager on his own payroll

An entrepreneur who runs his business through his own company limited by shares (AG) or limited liability company (GmbH) and pays himself a salary is, for AHV purposes, an employee of that company. The company is the employer, deducts his share and remits both shares in the same way as for any other employee. Owner-managers frequently consider how to divide their income between salary and dividend, since contributions are levied on salary while dividends are a return on the capital invested. This choice has consequences in several areas at once, including taxation, the second pillar and the future AHV pension, and should therefore be made deliberately and documented. In the "AHV 2030" consultation, which ran from 20 May to 11 September 2026, the Federal Council proposed that dividends above a 15 % return on invested capital should be treated as salary for contribution purposes. This is a proposal only and not law; the Federal Council's dispatch to Parliament is still pending.

Foreign employers without a Swiss establishment

The duty to pay contributions under Art. 12 OASIA attaches to employers with an establishment in Switzerland. Employees of an employer without a Swiss establishment are exempt from Swiss insurance if their work in Switzerland does not exceed three consecutive months per calendar year (Art. 1a para. 2 lit. c OASIA with Art. 2 OASIO). Where the work lasts longer, the employee is in principle insured in Switzerland, and the arrangements for paying the contributions should be clarified with the competent compensation office at an early stage. Social security agreements may lead to a different result, in particular where an employee is seconded to Switzerland for a limited period while remaining insured in his home country. These situations are covered in the article on social security agreements and secondments.

Practical checklist

• Register with the cantonal or an association compensation office before the first salary payment.
• Deduct 5.3 % AHV/IV/EO and 1.1 % ALV (up to the ceiling) from every salary and add the employer's matching share.
• Remit monthly, or quarterly where annual payroll does not exceed CHF 200,000, within 10 days after the end of the period.
• Apply the CHF 16,800 allowance for employees past the reference age unless they waive it.
• For owner-managers, decide the salary and dividend split deliberately and keep an eye on the AHV 2030 reform.
• For staff of foreign employers, check the three-month rule and any applicable social security agreement.

How Ressos Legal helps

I advise foreign entrepreneurs and companies on their obligations as employers in Switzerland, including registration with a compensation office, the structuring of owner-manager remuneration and cross-border employment, and I work alongside their advisers in their home countries. Contact me for an initial assessment of your situation.

Sources: Federal Act on Old-Age and Survivors' Insurance (SR 831.10) and Ordinance (SR 831.101), as of 1 January 2026; information leaflets of the AHV/IV Information Centre (ahv-iv.ch), as of 1 January 2026, and leaflet 2.08 on unemployment insurance contributions, as of 1 January 2025; Federal Social Insurance Office (bsv.admin.ch), consultation on AHV 2030. Figures as of October 2026.

For general information only. This article does not constitute legal or tax advice, does not replace advice on an individual case and creates no lawyer-client relationship. It reflects the legal position as of October 2026.