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Old 05.01.2020, 13:59
seithat seithat is offline
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Re: Is my offer's pension contribution fair?

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This is not clear to me.

So you will be an employee of the Swiss payroll company, not your current employer.(?)
Correct.

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Payroll companies deal with contractors, who usually have their own pension arrangemenst and plans, so want the bare minimum deducted from their wages.
Makes sense. I was never a contractor though, I'm trying to understand if I should take care of my own pension now or just save by myself.

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Yes, they do, but you will be an employee of the payroll company.

Looks to me like you will legally be employed by the payroll company while supplying your services to your ex-employer.

Please double check what your legal situation is.

Is that 140k net or gross? You need to understand that the payroll company will not incure any costs itself, ALL costs of employing you come from the money your ex-employer pays.

eg, AHV is 5.15% for the employee and the same for the employer.
If that 140k is gross ( the overall mount paid be your ex to the payroll company) then the payroll company will deduct their PROFIT for running the payroll ( eg 10% ) and then both YOURS and THEIR AHV contributions.
So from that one 140k, you already have deductions of over 20%, then there are other deductions, like the pension etc, and eventually, depending on the local tax rate, you may be getting close to 60% of that 140k yourself.



Maybe your current employer has explained everything to you already and it's clear, the 140k is net, maybe it's not, in which case you need to clarify.
I would not be confident your employer would continue this situation/complication long term, so have a Plan B ready.
The 140k is my salary. They didn't tell me the cost of my employment through the payroll company, it's their business. My employer is a medium size international company and I have an EU citizenship.

Thanks a lot for your reply!
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