AHV/IV/EO Swiss social security contribution increasing to 5.3% - What employers in Switzerland should know

What is AHV/IV/EO?

AHV (Old age and Survivor’s Insurance), IV (Disability Insurance) and EO (Loss of earnings compensation) together is an obligatory social security scheme for everyone who lives and works in Switzerland. 

How does the AHV/IV/EO rate change affect me as an employer?

The AHV/IV/EO contributions are part of salary deductions. They are borne half by the employer and half by the employee. As of 2021, the EO rate has been adjusted resulting in the increasing of monthly AHV/IV/EO contribution from 5.275% to 5.3%. For this reason, Swiss employers need to carry out adjustments in pay slips and salary declarations for 2021.

If I need assistance in this, how can F Trust help me?

We are a Swiss family office located in Zurich and Zug. We assist local and international clients in company incorporation, administration, accounting and payroll services in Switzerland. 

We help Swiss employers with:

• Monthly pay slip and yearly salary declaration

• Employer’s costs calculation for employment

• Employee registration for social securities, pension funds and other insurances

• Salary payment entering

If you would like F Trust’s assistance in adjusting the payrolls according to the rate change or have any questions in general about Swiss company administration, please do not hesitate to get in touch at admin@ftrust.ch