The Swiss Federal Council (executive branch) has recently rolled out a series of extraordinary measures to help improve the liquidity position of Swiss companies during the COVID-19 epidemic. These measures include notably the possibility to defer the payment of social security contributions and an extended use of employer pension reserves.

To help Swiss employers during the COVID-19 pandemic, the Swiss federal council has decided on various measures, highlights of which you will find below.

Swiss social security payments

We have listed below possible options for employers who would like to either stop or change their AHV/AVS payments:

• Interest-free deferral of payment of contributions
  As of 19 March 2020, the social security authorities have waived the calculation of interest on partial payments for 6 months. This applies to contributions to AHV/IV/EO and family allowances. Until the end of June 2020, the social security authorities will also stop sending reminders for unpaid contributions. The freeze on official debt recovery proceedings from 19 March to and including 19 April 2020 also applies to the debts to the Swiss social security administration.
• Instalment plan
  Employers have the possibility of putting into place payment plan to pay past contributions in instalments.
• Adjustment of pre-payments
  In cases, where the total wage is reduced due to hiring freezes or dismissals, the new estimated total annual wage can be communicated to the social security authority to adjust the amount of pre-payments

Swiss pension contributions

Starting 26 March, employers may temporarily use the employer contribution reserves they have set up to pay employee contributions to Swiss occupational pensions (2nd pillar) for a period of 6 months.

Swiss pension law provides the possibility to Swiss employers pay-in tax deductible reserves to the pension fund. These reserves can be used in times when money is tight in order to cover the payment of employer contributions. Exceptionally, during this period, employers can also use these reserves to cover employee contributions.

In order to take advantage of this possibility, an employer must inform their pension fund in writing of their intent.

Deloitte's view

These measures are part of a wider stimulus package that the Swiss Federal Council has taken to help companies with their liquidity position to enable them to navigate the crisis. Their impact and usefulness will likely vary depending on the size and scale of organisations.

Please contact our key contacts below if you would like to know more about these measures and if support is needed to benefit from them.

Explore our collection of Swiss COVID- Tax & Legal insights designed to help companies in Switzerland to better navigate the COVID-19 crisis.

Join our series of COVID-19 virtual events to stay up to date on the developments and resources at your disposal to manage and mitigate the challenges stemming from COVID-19.

Key contacts

Renaat Van den Eeckhaut – Partner, Global Employer Services Leader Switzerland and EMEA

Renaat leads the Global Employer Services (GES) Practice for Deloitte Switzerland and EMEA. He specialises in international assignment and cross-border employment matters and advises on tax, social security and international mobility policies. Renaat has nearly 20 years of experience with Deloitte Belgium and Switzerland and has worked with many companies across a broad range of industries. Renaat holds a Master in Law and Accounting Law and has authored many publications on international taxation.

Email

David Wigersma - Partner, Global Employer Services

David has 20 years of experience in the area of international corporate and individual taxation planning. He specialises in addressing the complex compliance needs of a cross-border workforce with varied elements of compensation.

Tabea Nyfeler - Senior Manager, Global Employer Services

Tabea is a recognized expert in the fields of international tax and social security planning. She is the co-lead of our international social security team in Switzerland. Over her career, she has acquired experience in a number of other areas of reward and mobility, including : global employment taxes, rewards, equity based compensation and pensions. Moreover, she has considerable experience in managing global mobility projects for multinational companies across a broad range of industries. Tabea is a Certified Tax Advisor and has authored publications on international tax and social security law.

Email 

Harry Verougstraete - Senior Manager, Global Employer Services 

Harry is a Senior Manager within the Global Employer Services team of Deloitte in Switzerland. He is the co-lead of our international social security team in Switzerland. He supports global companies on their international assignment, cross-border employment matters and advices on tax and social security matters. Harry has more than 9 years of experience with Deloitte Belgium and Switzerland.

Email