Calculating Net Salary in Switzerland 2026 — OASI, LPP, LAA, Source Tax

Calculating a net salary in Switzerland: more complex than it looks

In Switzerland, moving from gross to net salary involves a series of mandatory deductions split between employer and employee. Between OASI, occupational pension (LPP), accident insurance (LAA), source tax and cantonal contributions, a single pay slip can involve a dozen different parameters. This guide explains each deduction, the order in which to apply them, and how Neoffice automates the entire process.

The main categories of deductions

The Swiss social security system is built on the three-pillar model. Salary deductions primarily concern the 1st pillar (OASI/DI/EO), the 2nd pillar (occupational pension / LPP) and mandatory insurance (LAA, maternity allowance).

1st pillar: OASI, DI, EO

The 1st pillar provides basic retirement cover, invalidity insurance and earnings-replacement allowances.

Contribution	Employee share	Employer share	Total
OASI (old-age and survivors insurance)	4.35%	4.35%	8.70%
DI (disability insurance)	0.70%	0.70%	1.40%
EO (earnings replacement / APG)	0.225%	0.225%	0.45%
1st pillar total	5.275%	5.275%	10.55%

OASI/DI/EO rates are set by the Federal Council and have been stable since 2020. There is no OASI salary ceiling (all remuneration is subject to it, unlike the LPP).

Unemployment insurance (UI)

The UI contribution is 1.1% for the employee and 1.1% for the employer, up to an annual salary of CHF 148,200 (2024 threshold). Above this, a solidarity surcharge of 0.5% (not shared with the employer) applies to the portion of salary exceeding that threshold.

2nd pillar: LPP (occupational pension)

The LPP (Federal Act on Occupational Retirement, Survivors' and Disability Pension Plans) is mandatory from an annual salary exceeding CHF 22,050 (2024 entry threshold). The coordinated salary is the portion between CHF 25,725 and CHF 88,200.

Age-based retirement credit rates vary as follows:

Age	Credit rate
25–34	7%
35–44	10%
45–54	15%
55–65	18%

The contribution is in principle shared 50/50 between employer and employee, but the employer may contribute more. Swiss pension funds often provide benefits above the statutory minimum (supra-mandatory LPP).

LAA and LAAC: accident insurance

LAA (Federal Act on Accident Insurance) is mandatory for all employees.

Occupational accidents (AP): borne entirely by the employer
Non-occupational accidents (ANP): borne by the employee; applicable only to employees working more than 8 hours per week with the same employer

The ANP rate varies by insurer and sector (typically between 1.0% and 2.5%). The insured salary is capped at CHF 148,200/year.

LAAC (supplementary accident insurance) is optional but is often included in collective employment agreements.

Maternity/paternity allowance (cantonal)

Some cantons levy a separate maternity allowance (AM) contribution. In French-speaking Switzerland, this is generally included within the EO contribution.

Full worked example

Take an employee aged 38, domiciled in the canton of Vaud, with a gross monthly salary of CHF 7,500, not subject to source tax (Swiss resident or holder of permit C or B with standard tax return).

Deduction	Calculation	Amount
OASI/DI/EO (5.275%)	7,500 × 5.275%	− CHF 395.65
UI (1.1%)	7,500 × 1.1%	− CHF 82.50
LPP (10% of coordinated portion)	(7,500 − 2,143.75) × 10% / 12	− CHF 446.35
LAA ANP (1.3%)	7,500 × 1.3%	− CHF 97.50
Total employee deductions		− CHF 1,022.00
Net salary	7,500 − 1,022	CHF 6,478.00

LPP amounts are indicative and depend on the pension fund regulations. The monthly coordinated salary 2024 = (88,200 − 25,725) / 12 = CHF 5,206.25; at age 38 (10%) → CHF 520.63 total, of which 50% is the employee's share = CHF 260.31. The table above illustrates a common supra-mandatory fund.

Source tax (withholding tax)

Foreign workers without a C permit, as well as certain cross-border workers, are subject to source tax. The employer deducts the source tax amount monthly, calculated according to cantonal scales (taking into account marital status, children, and religious affiliation), and remits it directly to the canton.

Since the 2021 source tax reform, Swiss tax residents holding a B permit may request a subsequent ordinary assessment (TOU) if they meet certain criteria.

The salary certificate (Appendix 1 LPP)

At the end of each calendar year, the employer is required to provide each employee with a salary certificate (form 11). This document summarises:

Gross salary (box 1)
Social insurance contributions (box 9)
Reimbursed expenses (boxes 13–14)
Benefits in kind (box 2)

The salary certificate serves as the basis for the employee's tax return. An error in this document can lead to tax assessments being reopened several years later.

SwissDec: unified electronic salary data transmission

SwissDec is the Swiss standard for the electronic exchange of salary data between employers and institutions (OASI, LPP, LAA insurers, cantonal source tax offices). Certified SwissDec software enables:

Automatic calculation of contributions according to the applicable parameters
Generation of monthly and annual statements
Transmission of data to all institutions in a single XML submission (ELM 4.0 standard)

SwissDec certification is granted following a rigorous compliance procedure. By using certified software, the employer delegates the responsibility for the calculation to the software vendor and reduces the risk of input errors.

How Neoffice automates Swiss payroll

Neoffice includes a SwissDec-certified payroll module directly integrated with the accounting module. In practice:

OASI, LPP, LAA and source tax scales are updated automatically with every legal change
Pay slips are generated with one click with a detailed breakdown of all deductions
ELM submission to OASI funds, insurers and source tax offices is done from the interface without re-entry
The salary certificate (form 11) is produced automatically at year-end

For SMEs managing between 2 and 100 employees, this saves several hours of monthly work — and, above all, eliminates the risk of parameter errors.

Discover Neoffice's payroll module on our Payroll & HR page, or consult our complete guide on HR management for SMEs.