Swiss Payslip Explained
All payslip positions explained with clear examples—so you understand every deduction and why your net salary differs from gross.
- Decode every line – salary, allowances, deductions, and employer contributions.
- Swiss terms explained – AHV/IV/EO, ALV, BVG/LPP, NBU/BU, Quellensteuer.
- Use it in real life – check if your payslip matches your contract and avoid budgeting mistakes.
A Swiss payslip (Lohnabrechnung) can look intimidating—especially if you’re new to Switzerland or receiving your first job offer. But once you know the structure, it’s straightforward: gross salary plus/minus items, then deductions, and finally net salary. This page explains the most common positions you’ll see and what they mean.
Related: Start with Gross vs Net Salary Switzerland if you want the big picture first.
1. The 5 blocks of a Swiss payslip
- Employee & employer details (name, address, AHV number, company, payroll period)
- Earnings (base salary, hourly salary, overtime, bonuses, 13th salary, allowances)
- Deductions (AHV/IV/EO, ALV, BVG/LPP, accident insurance, withholding tax)
- Employer contributions (employer share of social insurance/pension—often shown separately)
- Net salary & payment (net amount, IBAN, payment date)
If you want the deductions overview in one place, use: Salary Deductions (CH) – Overview.
2. Payslip positions (line-by-line glossary)
Not every employer uses the same labels, but the meaning is usually identical. Below is a practical glossary of the most common lines.
| Payslip position | What it means | Why it matters |
|---|---|---|
| Base salary / Monatslohn | Your fixed monthly salary (or hourly salary converted to month). | Should match your contract (incl. % workload such as 80%, 100%). |
| Hourly wage / Stundenlohn | Pay based on hours worked (common in retail, hospitality, temp work). | Overtime and holiday pay may be handled differently than monthly salary. |
| Overtime / Überstunden | Additional pay for extra hours (or time compensation depending on contract). | Check rate/multiplier and whether it’s paid out or credited as time off. |
| Bonus | Variable payment (performance, company results). | Can change withholding tax and deductions in that month. |
| 13th salary / 13. Monatslohn | Extra salary installment (often paid in December or split monthly). | Important for budgeting—treat as yearly income, not monthly spending. |
| Allowances / Zulagen | Payments like shift/night allowance, travel allowance, meal allowance. | Some allowances are taxable; some may be reimbursed expenses. |
| Expense reimbursement / Spesen | Refund for work-related expenses (travel, meals, client costs). | Usually not “income” in a budget—don’t treat it like salary. |
| AHV/IV/EO | Swiss social security: old-age (AHV), disability (IV), income compensation (EO). | Mandatory payroll deduction for employees. |
| ALV | Unemployment insurance. | Mandatory payroll deduction; appears on most payslips. |
| BVG / LPP (2nd pillar) | Occupational pension contribution (employee share). | Often one of the biggest deductions; can increase with age. |
| Accident insurance (BU/NBU) | Work (BU) and non-work (NBU) accident coverage; employee share depends on employer setup. | Explains why two people with same gross can have different net salary. |
| Withholding tax / Quellensteuer | Tax deducted directly from salary for many foreign residents. | Rate depends on canton and tax category; affects net pay directly. |
| Other deductions | Possible items: cafeteria, parking, union fees, loan repayments, etc. | Check if these were agreed or optional. |
| Gross salary / Bruttolohn | Total earnings before deductions. | The number people usually negotiate—but not what you receive. |
| Net salary / Nettolohn | Amount paid out after deductions. | This is the number your budget should be based on. |
For a detailed explanation of how net salary is calculated, see: Gross vs Net Salary Switzerland.
3. How to verify your payslip matches your contract
- Workload: Does your base salary reflect your % (e.g., 80%)?
- 13th salary: Is it paid monthly or once per year—and is it stated in your contract?
- Allowances & expenses: Are reimbursements separated from taxable allowances?
- BVG/LPP: Do pension deductions look consistent across months?
- Tax status: If you have withholding tax, is the canton/category correct?
- Net pay timing: Is the payment date and IBAN correct?
If you’re taxed at source, these pages help: Withholding Tax (CH) – Guide and PIT vs WHT Switzerland – Explained.
4. Common questions & red flags
4.1 “My net pay is lower than expected”
Most often the reason is BVG (pension) or withholding tax. Compare your payslip to your contract and check whether 13th salary is included as a monthly portion or paid separately.
4.2 “Why are employer contributions shown?”
Many payslips show the employer’s share of AHV/ALV/BVG for transparency. These usually do not reduce your net salary.
4.3 “I see ‘Spesen’—is that income?”
Typically no. Expense reimbursements are refunds for work expenses. Don’t budget them like salary.
5. FAQ: Swiss payslip explained
Is a Swiss payslip the same everywhere?
The layout differs by employer and payroll provider, but the core items are usually the same: base salary, allowances, mandatory deductions (AHV/ALV/BVG), and net salary.
What does AHV/IV/EO mean on my payslip?
These are mandatory Swiss social security contributions: old-age (AHV), disability (IV), and income compensation (EO). They reduce your gross salary to net salary.
Why is BVG/LPP sometimes a big deduction?
BVG/LPP is the occupational pension (2nd pillar). Contribution rates can increase with age and depend on your employer’s pension plan.
What is Quellensteuer on a Swiss payslip?
Quellensteuer is withholding tax—income tax deducted directly from your salary for many foreign residents. See: Withholding Tax (CH) – Guide.
How long should I keep my payslips?
Keep them at least for several years (practically: as long as you may need them for tax filings, permits, loans, or disputes). A safe habit is to store them digitally each month.
Make your payslip useful (not confusing)
Track your real net income, plan taxes monthly, and keep your budget aligned with what actually hits your bank account.
Start with BudgetHub