Employer’s payroll costs
Employer social costs are the costs the employer bears on top of gross pay: their shares of AHV, IV, EO and unemployment insurance, pension fund contributions, accident and sickness daily allowance premiums, and family allowance contributions.
Definition
For calculating an hourly rate this is the decisive figure: whoever works from gross pay significantly underestimates the cost of their workforce. Depending on industry, workforce age and pension plan, the uplift lies roughly between fifteen and twenty-five per cent.
Statutory contributions, identical everywhere, must be distinguished from contractual ones such as the pension plan or extra-mandatory cover, which the business designs itself.
Where to read it
- Old-Age and Survivors’ Insurance Act (SR 831.10)
- BVG Occupational Pensions Act (SR 831.40)
- Accident Insurance Act (SR 832.20)
What the software must be able to do
Whoever costs projects or jobs needs a cost rate per employee that includes these charges — not the gross salary. Check whether the software holds that rate and carries it into the project report.
Checked Aug 2026
More terms under Payroll, staff and expenses: Accident insurance (UVG) AHV contributions BVG and pension fund Collective agreement rules Construction agreement Coordination deduction Cross-border workers Expense flat rates Expense policy Extra-mandatory pension cover Family allowances Gross and net pay Holiday pay in cash Hospitality agreement Hospitality collective agreement IV and EO Maternity allowance Owner’s salary Payslip Pension (BVG) deductions Pillar 3a Private share Salary statement Secondary employment Sickness daily allowance (KTG) Staff meals Swissdec ELM Thirteenth month salary Unemployment insurance (ALV) Withholding tax Work permits Working-hours recording (ArG)