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Old 01.02.2021, 12:37
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Lower netto salary due to higher taxes

Hi all,
This morning I have checked my bank account and I found out that for January my salary has been lowered of about 20CHF from the netto.
I know it doesn't sound much, but first, it's a matter of principle, second, we will not receive any raise this year due to corona.
We did not receive any previous warning from my employer (I don't know if it is his responsibility) and he justified so by saying that the taxes are higher this year. (I live and work in Zürich)
Unfortunately I have received the detailed pay slip yet, so I cannot exactly check what changed, but is it something allowed?

A colleague of mine will check with Unia as well, but i'm curious to hear other experiences.

Thanks
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Old 01.02.2021, 12:50
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Re: Lower netto salary due to higher taxes

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Hi all,
This morning I have checked my bank account and I found out that for January my salary has been lowered of about 20CHF from the netto.
I know it doesn't sound much, but first, it's a matter of principle, second, we will not receive any raise this year due to corona.
We did not receive any previous warning from my employer (I don't know if it is his responsibility) and he justified so by saying that the taxes are higher this year. (I live and work in Zürich)
Unfortunately I have received the detailed pay slip yet, so I cannot exactly check what changed, but is it something allowed?

A colleague of mine will check with Unia as well, but i'm curious to hear other experiences.

Thanks
You can compare the 2020 and 2021 ZH Quellensteuer tariffs. This is also what your payroll dept looks at.

"Is this allowed?" is a funny question. Unfortunately, the state considers the collection of taxes as a core competency and has a pretty solid legal basis for doing so.
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Old 01.02.2021, 12:52
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Re: Lower netto salary due to higher taxes

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Hi all,
This morning I have checked my bank account and I found out that for January my salary has been lowered of about 20CHF from the netto.
I know it doesn't sound much, but first, it's a matter of principle, second, we will not receive any raise this year due to corona.
We did not receive any previous warning from my employer (I don't know if it is his responsibility) and he justified so by saying that the taxes are higher this year. (I live and work in Zürich)
Unfortunately I have received the detailed pay slip yet, so I cannot exactly check what changed, but is it something allowed?

A colleague of mine will check with Unia as well, but i'm curious to hear other experiences.

Thanks
Happens often. when you slip from top of one tax-progression into the bottom of the next up. That's why sometimes payraise is not what you want (or a better one ).
No it's not the employer's job to inform you about that. In fact I'd say they don't think about that as to them you still cost quite a lot more (not only the higher salary but their part in the social costs rises too).
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Old 01.02.2021, 13:05
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Re: Lower netto salary due to higher taxes

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You can compare the 2020 and 2021 ZH Quellensteuer tariffs. This is also what your payroll dept looks at.

"Is this allowed?" is a funny question. Unfortunately, the state considers the collection of taxes as a core competency and has a pretty solid legal basis for doing so.
I just found this article and it seems there is an increase in the taxation
https://www.zh.ch/de/news-uebersicht...inkommens.html

Haven't received yet the detailed payroll by the employer

I was more wondering if that's okay that despite of agreeing on keeping the same salary of the previous year, I get in fact less
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Old 01.02.2021, 13:22
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Re: Lower netto salary due to higher taxes

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I just found this article and it seems there is an increase in the taxation
https://www.zh.ch/de/news-uebersicht...inkommens.html

Haven't received yet the detailed payroll by the employer

I was more wondering if that's okay that despite of agreeing on keeping the same salary of the previous year, I get in fact less
Sorry, but what you agree with your employer is the bruttolohn (income before taxes). What you see in your bank account is the nettolohn (income after taxes).

It's safe to assume you pay your taxes via Quellensteuer (withholding tax). So, you should have completed and signed a form where you wrote down single/married, number of children, religion, etc. Base on this info you employer looks for the tax rate at info provided by ZH canton to apply to your income. So, check that your employer is applying the right tax rate. Sometimes employers are a bit lazy and just use a higher tax rate....after all, it's not their money.
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Old 01.02.2021, 13:36
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Re: Lower netto salary due to higher taxes

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Happens often. when you slip from top of one tax-progression into the bottom of the next up.
Happens never. A pay rise will always result in a net gain after tax. To get less after a pay rise would mean the marginal tax rate is over 100% which is not case.
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Old 01.02.2021, 13:43
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Re: Lower netto salary due to higher taxes

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I just found this article and it seems there is an increase in the taxation
https://www.zh.ch/de/news-uebersicht...inkommens.html
The Bezugsprovision should not influence your taxation. This is just a reimbursement for the employer. One could also call it a kick back.
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Old 01.02.2021, 13:56
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Re: Lower netto salary due to higher taxes

I haven't checked ZH taxes but one small change that happened is that the deduction for AHV (first pillar) increased from 5.275% to 5.3% as of Jan 1. This will impact everyone but, of course, the difference is very small.
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Old 01.02.2021, 14:21
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Re: Lower netto salary due to higher taxes

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I haven't checked ZH taxes but one small change that happened is that the deduction for AHV (first pillar) increased from 5.275% to 5.3% as of Jan 1. This will impact everyone but, of course, the difference is very small.
It is the EO which changed (https://www.ahv-iv.ch/p/1.2021.d)
EO is used to pay for maternity leave and also for income during military service.

But CHF 20 on a change of 0.025% would mean an monthly (!) income of CHF 80'000
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Old 01.02.2021, 14:52
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Re: Lower netto salary due to higher taxes

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Happens never. A pay rise will always result in a net gain after tax. To get less after a pay rise would mean the marginal tax rate is over 100% which is not case.

It does happen. I had a small increase of CHF 110 and it translated into a net loss after tax.
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Old 01.02.2021, 14:58
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Re: Lower netto salary due to higher taxes

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It is the EO which changed (https://www.ahv-iv.ch/p/1.2021.d)
EO is used to pay for maternity leave and also for income during military service.

But CHF 20 on a change of 0.025% would mean an monthly (!) income of CHF 80'000
For sure it's not my case
Maybe there's something off
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Old 01.02.2021, 15:03
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Re: Lower netto salary due to higher taxes

Quellensteuer in ZH went up per 1 Jan 21, just had a quick look at Tarif A at least. At 9000 CHF per month tax rate goes from 10.57% to 10.90%, so 30 CHF per month in that case.

The daddy holiday thing would come on top and deducted per social insurance rather than tax.
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Old 01.02.2021, 15:08
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Re: Lower netto salary due to higher taxes

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It does happen. I had a small increase of CHF 110 and it translated into a net loss after tax.
That was with the same tax rates as in the previous year ?
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Old 01.02.2021, 15:18
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Re: Lower netto salary due to higher taxes

For me/us there was usually a difference in Pillar 2 pension and insurance premiums each year.
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Old 01.02.2021, 15:19
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Re: Lower netto salary due to higher taxes

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That was with the same tax rates as in the previous year ?
One of the problems with Quellensteur is that the tax rate changes depending on your earnings, so clearly if a small increase in earnings has triggered a higher rate, which is then applied to the whole salary, then it can lead to this absurd situation.

When I was first over here I was working on an hourly-rate contract, and sometimes varying worked hours significantly from one month to the next, so was very much aware of this. I recall taking three weeks holiday in one month but working up about 300 hours in the next, so the rate changed from around 10% to something like 25% across the two months (where a "normal" month might have been something like 15%). Totally confused me at the time, but then I went permie, so...
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Old 01.02.2021, 16:13
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Re: Lower netto salary due to higher taxes

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That was with the same tax rates as in the previous year ?
No I was refering to Curley's post regarding slipping between tax brackets. Mid last year I got a increase which translated into a net reduction of take home pay. (I'm taxed at source).
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Old 01.02.2021, 17:56
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Re: Lower netto salary due to higher taxes

Before checking with Unia and such, please please check your 2020 and your 2021 pay slips.

As somebody has mentioned, some deduction % have changed (yup, that "daddy paid holiday" isn't free ...).

It is quite common to have these changes in January. These changes are usually well explained by the Federal Governement (or it's mentioned in every newspaper): https://www.ahv-iv.ch/p/1.2021.f (sorry, didn't find the English version)

Let us know which % have changed and we will be able to help you better
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Old 01.02.2021, 18:08
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Re: Lower netto salary due to higher taxes

Where's Trump when you need him?
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Old 01.02.2021, 20:48
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Re: Lower netto salary due to higher taxes

Jein, there is a law that states how many hours is the maximum working week, no, it is not the same for everyone.
" The current labour law – with weekly maximums of 45 or 50 hours, depending on the sector – dates back to 1966. "
https://www.swissinfo.ch/eng/office-...week-/43716794

The law can be found here:
https://www.fedlex.admin.ch/eli/cc/1966/57_57_57/de
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Old 01.02.2021, 21:34
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Re: Lower netto salary due to higher taxes

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Is there a law that defines how many hours per week or per month a "100%" job is? Some employers have 38 hours, others 42, some 45... who's to say, when it's about a part-time job? Must the man now ask his employers who don't know any full-time working week, to define it, hypothetically? If so, would it to the employee's advantage or disadvantage if an employer were to declare their "100%" to be 38 hours, or 45 hours?

Can anyone shed any light on this, please?
It is once again in the Kreisschreiben 45 (Search for 045, there are 6 appendices)
It is explained in Section 6.4 and 6.5
It is either x% as defined by the employer or a base of 180 hours per month. A month has 4 1/3 week, accordingly it is around 41.54 hours/week.
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