National insurance

Performing a professional activity in Switzerland entails the obligation to pay certain national insurance contributions for both yourself and your staff. In terms of personal national insurance contributions, some are compulsory and others non-compulsory, depending on the legal form selected for the company.

Liability

Two basic categories of national insurance have been set up:

  • the self-employed and entrepreneurs, for whom only AVS/AI/APG and statutory health insurance are compulsory.
  • salaried employees, for whom the following national insurance contributions are compulsory:
    • Pension and disability insurance, and income replacement scheme (AVS/AI/APG)
    • Occupational pension plan (LPP)
    • Unemployment insurance (AC)
    • Professional accident insurance (LAA)
    • Health insurance (LAMal)

The vast majority of the compulsory insurance schemes are underwritten by the employer, who is required to provide some of the finance.

It should be noted that the people who establish public limited companies or limited liability companies are entrepreneurs and their own employees at one and the same time. Consequently, where national insurance is concerned, they are dependent employees. In most cases, the majority of insurance schemes are compulsory.

Please refer to the summary table summary table for more information.