You got your first Swiss payslip. It's one page of numbers, acronyms, and percentages that look nothing like the Italian busta paga you're used to. AVS, AD, AINP, LPP, QST — what do they all mean, and why is so much money disappearing before it reaches your bank account?
Here's the truth: your Swiss payslip is actually simpler than the Italian one. There are fewer lines, the logic is straightforward, and once you understand each deduction, you'll never be confused again.
The Structure: From Top to Bottom
Every Swiss payslip follows the same basic structure:
GROSS SALARY (what you earn before anything is taken out) - Social contributions (AVS, AD, AINP) - Pension (LPP) - Source tax (Quellensteuer) = NET SALARY (what hits your bank account)
Five categories of deductions between gross and net. Let's break each one down.
Line 1: Gross Salary (Salario Lordo)
Your total salary before deductions. If your contract says CHF 65,000/year with 13 months, your monthly gross is CHF 5,000 (65,000 ÷ 13).
Watch for: 12 vs 13 months (13th paid in December), overtime, bonuses, and holiday pay (8.33% for hourly contracts).
Line 2: AVS / AI / IPG — 5.3%
AVS = Old Age and Survivors Insurance. AI = Disability Insurance. IPG = Loss of Earnings Compensation.
You pay: 5.3% of gross. Employer pays: another 5.3% (invisible to you). Total: 10.6%.
What you get: A Swiss state pension (AVS) when you retire, proportional to your years of contribution. Even 5 years give a partial pension. Maximum: ~CHF 2,450/month (requires 44 full years).
Example on CHF 5,000/month: CHF 5,000 × 5.3% = CHF 265 deducted.
This is your first pillar — the foundation of Swiss retirement.
Line 3: AD — 1.1%
AD = Unemployment Insurance (Assicurazione contro la Disoccupazione).
You pay: 1.1%. Employer pays: another 1.1%.
The irony for frontaliers: You pay into Swiss unemployment insurance, but if you lose your job, your benefits come from Italy (NASpI via INPS). However, the NASpI is calculated on your Swiss salary level, so the benefit is typically much higher than for Italian-employed workers.
Example: CHF 5,000 × 1.1% = CHF 55
Line 4: AINP — ~1.0-2.0%
AINP = Non-Occupational Accident Insurance. Covers accidents outside of work (skiing, cycling, falling at home).
You pay: 1.0-2.0% (varies by sector). Entirely on you.
Your employer pays separately: Occupational accident insurance (SUVA) for work accidents — doesn't appear on your payslip.
What you get: Medical treatment + 80% of salary if you have a non-work accident. Genuinely valuable insurance.
Example at 1.46%: CHF 5,000 × 1.46% = CHF 73
Line 5: LPP / BVG — 3.5% to 9.0%
LPP = Occupational Pension (second pillar). The rate increases with age:
| Age | Total Rate | Your Share | Employer Match |
|---|---|---|---|
| 25-34 | 7% | 3.5% | 3.5% |
| 35-44 | 10% | 5.0% | 5.0% |
| 45-54 | 15% | 7.5% | 7.5% |
| 55-65 | 18% | 9.0% | 9.0% |
Calculated on the “coordinated salary” — your gross minus CHF 25,725 (2026). Not the full salary.
Your employer matches 1:1. This is free money going into YOUR retirement account.
Example, age 38, CHF 5,000/month:
Coordinated: (CHF 60,000 - 25,725) ÷ 12 = CHF 2,856/mo
Your deduction: CHF 2,856 × 5.0% = CHF 143
Employer also pays: CHF 143
Total into your pension monthly: CHF 286
Line 6: Source Tax (Quellensteuer) — Variable
Your Swiss income tax, withheld directly by your employer. Rate depends on your tariff code:
- A = Single, no children
- B = Married, single income
- C = Married, dual income
- H = Single parent
- Number = dependent children (A0, B1, C2, etc.)
The tariff matters enormously. Same CHF 5,000/month:
| Tariff | Effective Rate | Tax/Month |
|---|---|---|
| A0 (single) | ~10% | CHF 500 |
| B1 (married, 1 child) | ~5% | CHF 250 |
CHF 250/month difference — CHF 3,000/year — just from the tariff code. If you married or had a child, tell HR immediately.
The Result: Your Net Salary
CHF 5,000/month, age 38, single (A0), Ticino:
Gross monthly salary CHF 5,000.00
- AVS / AI / IPG (5.30%) -CHF 265.00
- AD Unemployment (1.10%) -CHF 55.00
- AINP Accident (1.46%) -CHF 73.00
- LPP Pension (5.00% coord.) -CHF 142.88
- Source tax A0 (~10%) -CHF 500.00
────────────
Net salary CHF 3,964.12
Total deductions: CHF 1,036 (20.7% of gross). Same person, married with 1 child (B1): net CHF 4,214 — CHF 250/month more.
What You Don't See (But Should Know About)
| Employer Cost | Rate | On CHF 5,000/mo |
|---|---|---|
| AVS/AI/IPG (employer) | 5.3% | CHF 265 |
| AD (employer) | 1.1% | CHF 55 |
| SUVA occupational | ~0.8% | CHF 40 |
| LPP (employer) | 5.0% | CHF 143 |
| Family allowances | ~1.6% | CHF 80 |
| Total | ~14.1% | CHF 598 |
In Italy, employer costs are ~41% on top of gross. In Switzerland, ~12-15%. This is why Swiss salaries can be higher.
The Year-End Correction (Conguaglio)
In December, your employer recalculates source tax for the entire year. If your situation changed (marriage, child, salary increase), the monthly withholdings may have been off.
Overpaid: refund in December. Underpaid: extra deduction in December. Normal — not an error.
How to Check If Your Payslip Is Correct
1. Is your tariff code correct? Check the letter-number (A0, B1, etc.). Changed situation = changed code. Contact HR if wrong.
2. Is your LPP rate correct for your age? Crosses a bracket (25, 35, 45, 55) = rate increase from next January.
3. Does gross match your contract? 13-month contract = annual ÷ 13, not 12.
New agreement note: If you started after July 2023, your Swiss payslip isn't the full picture — you also owe Italian IRPEF (via annual tax return), with a credit for Swiss tax already paid.
Last updated: June 2026. Rates based on 2026 federal and cantonal parameters. Actual deductions may vary based on employer's pension plan and canton. This does not constitute tax or financial advice.
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