Unemployment insurance (ALV)
Unemployment insurance is financed by contributions on the determinant salary, borne half each by employer and employee; above the maximum insured salary only a reduced solidarity contribution is due.
Definition
Those two tiers are why payroll software has to know the annual limit: above the maximum salary the rate changes mid-year as soon as cumulative income crosses the threshold. Whoever calculates monthly with a single rate ends the year off target.
Not liable to contributions are people who have reached AHV retirement age and the self-employed — the latter are not insured against unemployment, which plays a part in choosing the legal form.
Where to read it
What the software must be able to do
The check is the annual cumulation: does the program calculate the switch to the solidarity contribution automatically, including for joiners and leavers mid-year and where there are several employers?
Checked Aug 2026
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