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What’s new in the Swiss Wages?

What's new in the Swiss withholding tax in 2021?

What’s new in the Swiss Wages? 

In our previous blog Swiss Employment withholding tax: are you ready for the changes in 2021? We indicated what would change for Swiss taxpayers and employers in 2021 and how to prepare for that. As the new regulation brings important changes for companies as well as employees, we would like to provide additional information on the main changes in Swiss wages.

The specific regulations per canton

Geneva: The maternity insurance rate used to be 0.92, 0.46% employee share and 0.46% employer share. This decreases to 0.86, 0.43% employee share and 0.43% employer share.

Solothurn: Implementation of the PC Family contribution which will be deducted from the family allowance rate at a rate of 1.55%.

Ticino: Establishment of a parental allowance deducted from the family allowance at a rate of 2.48%.

Valais: Creation of a new cantonal fund for continuous education for adults, which will be deducted from family allowances at a rate of 3.196%.

New paternity leave

All fathers active since 2021 will benefit from a paternity leave of 10 working days for the birth of their child. Each block of five days entitles the father to two additional daily allowances, making the total two weeks. The new father can take this leave continuously or discontinuously within 6 months after the birth of the child. Note: This is additional to holiday leave.

This resulted in a minimal increase of the APG share from 0.45% to 0.50%, 0.25% employer’s share, 0.25% employee’s share.

The total share of deductions AVS / AI / APG on salaries will therefore be 10.6%, 5.3% employee share compared to the new rate of 5.3% employer share.

In order to enjoy this leave, it will resemble the rules for maternity leave and the employee must therefore:

  • Be active.
  • Have a child. The partner has actually given birth.
  • Insured with AVS for more than 9 months.
  • Have been working for more than 5 months.

As for the payment of the benefit, if the employee receives the salary from the employer, it will be paid to the employer, otherwise it will be paid directly to the employee.

Family Allowances

Some cantons have changed the amounts of family allowances as follows:

Family allowances Swiss employment tax 2021
For the other cantons, the amounts remain unchanged.

The contribution rate for family allowances for those working in the canton of Valais increases from 0.30% in 2020 to 0.301% in 2021.

BVG amounts

The BVG-amounts have changed slightly:

BVG amounts Swiss employment tax 2021

The amounts may also differ depending on the contract you have with your pension fund.

This article was originally posted on Wilfrid Dusseaux’s linkedin page. You can read the French version of this blog on  Changements sur les Salaires Suisses en 2021.

Keep an eye on our blogs and subscribe to receive notifications. As Wilfrid’s next blog will cover the changes made to withholding tax in Switzerland since January 1, 2021 for employers.

Post by Wilfrid Dusseaux – SAP SuccessFactors Consultant at Adessa


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