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Old 12.11.2019, 18:01
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Salary deductions based on employer benefits

Hello everyone,

Am new to the forum, have gone through the FAQs and other threads and am looking to find out if certain salary deductions are applicable if employer states he does cover that.

As a baseline, I have used lohncomputer calculator for a 32 y.o. single earner CFH 105k salary for the family of two without children, residing in Neuchatel. The figures given based on 13months salary were:
  • Total deductions (26.75%): 2'160.20 CHF
  • AHV/IV/EO contribution: 413.95 CHF
  • ALV contribution: 88.85 CHF
  • NBU contribution: 116.31 CHF
  • KTG contribution: 36.35 CHF
  • Pension Fund: 477.36 CHF
  • Withholding Tax: 1'027.39 CHF

Proposed contract states that the following are 100% covered by the employer: illness or work related injury and professional and unprofessional accident. Does this mean that NBU and KTG would not be deducted? In the same document, it was also stated that unemployment insurance, pension scheme and unemployment insurance are 50% covered by employer and 50% by employee - does that mean that only half of the AVL and pensions scheme as per illustration above is to be deducted?

Or is it just the general wording and the deductions from the salary as calculated by the online tool are more or less correct (based on the % for each individual deductible, obviously).

If the latter - would it mean that the 2nd pillar pension contribution would just be matched by the employer?

I have also seen in one of the threads, that based on the fact that the spouse does not work (would be the case for a certain period of time, so looking into the worst case scenario) - certain tax / contributions are to be made for her. The thread did say as follows:
Quote:
According to the Zurich tax authority, if you are married with 2 kids and wife doesn’t work you’ll pay about CHF 500 a month tax. On top of that you will have max 700 social contributions and will have to pay a company pension contribution of 500-1000.
Bearing in mind the figures are for Zurich and for a different income - was wondering I could be guided on the estimate what shall I pay on top after the net salary to cover her taxes/social contributions/etc. As I didn't quote understand if the ~CHF 500 tax is all that is required for her, or there are estimated 700 social contributions and pensions for her as well? (I understand that the health insurance is on top, which I will need to source for both of us).

The answers would help me to estimate the final take home amount, which I could use to assess myself whether such kind of offer is enough / comparable to the lifestyle here in the UK.

Many thanks in advance, should there be useful answers!
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Old 12.11.2019, 19:10
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Re: Salary deductions based on employer benefits

Employers part is always paid separately and not seen on your pay slip.

KTG is Krankentagegeld, not accident, so that is your part and you pay that.
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Old 12.11.2019, 20:33
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Re: Salary deductions based on employer benefits

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Employers part is always paid separately and not seen on your pay slip.

KTG is Krankentagegeld, not accident, so that is your part and you pay that.
Thanks for addressing this part. However, based on the contract/salary proposal - if they state that they fully cover the illness or work related injury and professional and unprofessional accident - would this actually mean that CHF amount deducted for these tax point as per online calculator - would not be deducted on my payslip, therefore the actual net pay that I get would be more by +- that CHF amount? Hope I did express myself clearly.

I hope other point will be addressed as well!
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Old 12.11.2019, 20:49
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Re: Salary deductions based on employer benefits

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Thanks for addressing this part. However, based on the contract/salary proposal - if they state that they fully cover the illness or work related injury and professional and unprofessional accident - would this actually mean that CHF amount deducted for these tax point as per online calculator - would not be deducted on my payslip, therefore the actual net pay that I get would be more by +- that CHF amount? Hope I did express myself clearly.

I hope other point will be addressed as well!

No, this is all what you pay
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Old 12.11.2019, 22:15
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Re: Salary deductions based on employer benefits

So generally speaking, its not actually a benefit provided by the employer, but rather a standard practice within Switzerland when calculating all deductibles from the salary and coming to the net amount.

Any suggestions on the contributions I would need to consider for a spouse who would not be working for a period of time, apart from a compulsory health insurance?
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Old 13.11.2019, 06:29
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Re: Salary deductions based on employer benefits

Accident insurance, can be added to the health insurance
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Old 13.11.2019, 06:45
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Re: Salary deductions based on employer benefits

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Accident insurance, can be added to the health insurance
Must be added to the health insurance
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