Switzerland Social Security: Contribution rates increase as of 1 January 2021 - Tax and Legal blog

Blog social security rates
In the referendum on 27 September 2020, the proposal for two weeks paid paternity leave was adopted. The amendment of the Loss of Earnings Compensation Act (LEC) will come into force on 1 January 2021 and results in an increase in the EO contributions.

Contribution rates as of 1 January 2021


  Employer     Employee         Total
AHV/ AVS 4.35% 4.35% 8.70%
IV/ AI 0.70% 0.70% 1.40%
EO/ AC from 01.01.2021 0.25% 0.25% 0.50%
EO/ AC until 31.12.2020 0.225% 0.225% 0.45%
Total social security rate as of 01.01.2021 5.30% 5.30% 10.60%
Until 31.12.2020 5.275% 5.275% 10.55%

The minimum social security contributions for self-employed people will increase from 5,344 % to 5.371 % and the maximum contributions from 9,95% to 10.00%.

The minimum social security annuity will increase from CHF 1'185 to CHF 1'195 per month and the maximum pension from CHF 2'370 to CHF 2'390. The maximum pension for a married couple will increase from CHF 3’555 to CHF 3'585 per month.

For the 2nd pillar (occupational benefits) and the 3rd pillar (individual retirement account) the following applies:

  From 01.01.2021 Until 31.12.2020
Entry threshold for pension contributions CHF 21'510 CHF 21'330
Coordination deduction deducted per year CHF 25'095     CHF 24'885
Pillar 3a maximum deduction CHF 6'883 CHF 6'826

Actions :

Please make sure the changes are reflected in your Hypo tax calculations as well as your cost projections going forward.

We look forward to connecting with you again soon. In the meantime, please send your questions to Tabea Nyfeler or Harry Verougstraete.

If you would like to discuss more on this topic, please do reach out to our key contacts below.

Find our more about International Social Security and our solutions. 

Key contacts


David Wigersma - Partner, Global Employer Services

David has 17 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_110x110

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.


Harry Verougstraete - Senior Manager, Global Employer Services 

Harry is a Senior Manager within the Global Employer Services team of Deloitte in Switzerland. He is leading our Posted Workers Directive (PWD) offering and is co-leading our international social security team in Switzerland. Harry has more than 9 years of experience with Deloitte Belgium and Switzerland. He supports companies on global mobility related matters and is specialised in coordinating global mobility programs. He advices on tax, social security and PWD related matters. 


Pernilla Siggberg_110x110

Pernilla Siggberg - Consultant, Global Employer Services 

Pernilla is a consultant within Deloitte’s Global Employer Services. In that role, she supports clients with a variety of topics within international expatriate taxation and social security to ensure compliance amongst their mobile workforce. Pernilla holds a Bachelor of Laws degree from the Abo Akademi University in Turku, Finland and a Master’s degree in Management and Law from the Zurich University of Applied Sciences. Pernilla is fluent in several languages, including English, German, Swedish and Finnish. Prior to joining Deloitte in October 2018, she worked as a research associate within international business at a university.



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