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Old 26.03.2010, 15:35
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Salary breakdown for Expat-trying to find what net take home is

Hi guys and girls, I have a potential offer to work in Zurich and haven't received compensation details yet...To assist my decision making process, I made a model in Excel that takes into account salary, Canton Tax/Federal Tax, and US Federal Tax. From what I have read on the forum it sounds like there are a couple more things taken out of your monthly paycheck in Zurich than just canton/federal tax. For this exercise I assume the salary is around CHF140k: yield 14.95% canton tax and 5.36% federal tax.

I can't believe that is the only thing deducted from my paycheck. What am I missing and what are the amounts as they relate to % of salary? From reading on the forums I think I am missing pension and insurance. What else?

Thanks!
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Old 26.03.2010, 15:42
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Re: Salary breakdown for Expat-trying to find what net take home is

Hi,

I assure you that 140k makes for a perfectly comfortable life here - at least without kids. I know plenty of people not earning that amount whom have kids and it works fine for them.

health insurance is a cost you should factor in, although it doesn't come out of your salary - it is completely compulsory.

Here's my deduction headings from my payslip - but I dont pay taxes at source .......

Salary xxxxxx
KV:Contribution xxxxx
KV:Contrib.suppl.insuran. xxxxx
GROSS xxxxxx
AHV contribution xxxxxxx 5.05 % xxxxx-
UI contribution xxxxxxx 1.00 % xxxxxx-
Pension Fund Contribution xxxxxxx-
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Old 26.03.2010, 15:43
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Re: Salary breakdown for Expat-trying to find what net take home is

Deductions and taxes
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Old 26.03.2010, 15:44
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Re: Salary breakdown for Expat-trying to find what net take home is

On 140K, you will get about CHF 9100 which includes taxes, First Pillar (5.05%) and IInd pillar (varies but about same or bit lower as Ist). This is when considering 12 monthly installment. For 13 payments in a year, it should be about CHF 8500.
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Old 26.03.2010, 15:49
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Re: Salary breakdown for Expat-trying to find what net take home is

Your taxes will depend on the community in which you live.

If you go to www.homegate.ch, there is a tax calculator, "Steuerrechner"
in German.

Unfortunately, I think it is only in German. You can enter two communities: Horgen and Thalwil for example. You will then get
an approximation of your take home.
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Old 26.03.2010, 15:54
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Re: Salary breakdown for Expat-trying to find what net take home is

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Hi,

I assure you that 140k makes for a perfectly comfortable life here - at least without kids. I know plenty of people not earning that amount whom have kids and it works fine for them.

health insurance is a cost you should factor in, although it doesn't come out of your salary - it is completely compulsory.

Here's my deduction headings from my payslip - but I dont pay taxes at source .......

Salary xxxxxx
KV:Contribution xxxxx
KV:Contrib.suppl.insuran. xxxxx
GROSS xxxxxx
AHV contribution xxxxxxx 5.05 % xxxxx-
UI contribution xxxxxxx 1.00 % xxxxxx-
Pension Fund Contribution xxxxxxx-

I'm pretty sure that health insurance is compulsory within 3 months of arriving.
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Old 26.03.2010, 15:57
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Re: Salary breakdown for Expat-trying to find what net take home is

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I'm pretty sure that health insurance is compulsory within 3 months of arriving.
It's compulsory from the moment you arrive, but you have three months to purchase it . . . payments will then be backdated.
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Old 26.03.2010, 16:02
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Re: Salary breakdown for Expat-trying to find what net take home is

So should I assume the first and second pillar pension are each 5% of my taxable income? Can someone explain there:

KV:Contribution xxxxx
KV:Contrib.suppl.insuran. xxxxx
GROSS xxxxxx
AHV contribution xxxxxxx 5.05 % xxxxx-
UI contribution xxxxxxx 1.00 % xxxxxx-
Pension Fund Contribution xxxxxxx-

Trying to make sense of this from a personal P&L POV. Is insurance taken out pre/post taxable income? Any idea of the monthly range this will be in?Thanks again for the quick responses!
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Old 26.03.2010, 16:07
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Re: Salary breakdown for Expat-trying to find what net take home is

health insurance is post-tax, completely independent from whatever salary package you are offered. the premiums depend on the insurance you choose and the excess you pick, a 500fr excess has premiums of about 300fr per month
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Old 26.03.2010, 16:14
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Re: Salary breakdown for Expat-trying to find what net take home is

wow 300 a month...I guess that's why the Zurich website says it has one of the best health care systems in the world. Here is how my model looks from the P&L POV:

Monthly Annual Pre- Tax Monthly income CHF 11,666.67 CHF 140,000.00 Pillar 3 Pension CHF 530.42 CHF 6,365.00 Taxable Income CHF 11,136.25 CHF 133,635.00 Pillar 1 Pension CHF 556.81 CHF 6,681.75 Pillar 2 Pension CHF 556.81 CHF 6,681.75 Canton Tax CHF 1,744.17 CHF 20,930.00 Swiss Federal Tax CHF 625.33 CHF 7,504.00 Health Insurance CHF 300.00 CHF 3,600.00 US Taxes CHF 1,357.50 CHF 16,290.00
Also, does the swiss system have a deduction approach so you can max deductions and increase your take home pay instead of getting a check back from the govt at the end of the year?
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Old 26.03.2010, 16:20
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Re: Salary breakdown for Expat-trying to find what net take home is

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On 140K, you will get about CHF 9100 which includes taxes, First Pillar (5.05%) and IInd pillar (varies but about same or bit lower as Ist). This is when considering 12 monthly installment. For 13 payments in a year, it should be about CHF 8500.
Two words of warning on this.

My pillar II contribs are 7.5% of my salary above the state pension and will increase with age. I'm currently 29.

Although your monthy take home may be 9100, you will be required to file a tax return, although probably only in your first full calendar year here, as you will earn under 120k this calendar year. You will then be assessed to have under or over paid your taxes and will need to make a payment or receive a refund. How much and in which direction will depend on the community you live in - Zurich city is much more expensive than Thalwil for example, and what deductions you claim for, such as pension contribs, interest on debt, travel to work, training etc.
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Old 26.03.2010, 16:25
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Re: Salary breakdown for Expat-trying to find what net take home is

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... will need to make a payment or receive a refund. ....
which, according to stories I've heard (haven't done one myself yet...) may take a couple of years...
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