Decoding your payslip: what deductions for AHV, pension fund and withholding tax mean
AVS, ALV, LPP, NBU, withholding tax – the Swiss payslip is packed with abbreviations. We break down each line to show where your money goes.
Redaktion swissexpat · 2 July 2026 · 5 min
The first Swiss payslip can feel like a cultural shock: a proud gross salary at the top, followed by a parade of abbreviations at the bottom. The good news? Each line represents insurance or provision – in other words, your own safety net.
Line by line
AHV/IV/EO (5.3%) is the state old-age, disability and loss-of-earnings insurance – the first pillar. ALV (1.1%) covers unemployment. NBU insures against accidents outside work. And the largest entry, the pension fund (BVG), isn’t lost money; it’s your personal retirement capital – your employer contributes at least the same amount.
Rules of thumb
- After tax, you typically keep around 78–85% of your gross salary, depending on canton, age and income
- Check your withholding tax code: A (single), B (married, one income), C (married, two incomes), H (single parent)
- Wrong code = overpaid tax – ask your employer to correct it
- 13th-month salary: usually paid in December, or proportionally if you join part-way through the year
Understanding your payslip helps you negotiate better – and avoids leaving refunds unclaimed.
In your first few months, double-check your withholding tax code and the pension fund’s coordination deduction. These are the most common – and costly – sources of error for newcomers.
Source: AHVG, AVIG, BVG, UVG, cantonal withholding tax tariffs. Status: July 2026.
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