AHV/AVS (Swiss state pension)
is Switzerland’s first-pillar state insurance covering old age, survivors and disability (with IV/AI and EO/APG attached). Contributions total 10.6% of salary — split equally employer/employee — with no ceiling, and enrolment is automatic through payroll from age 17 for employees.
What employers administer
Employers register staff with a compensation office (Ausgleichskasse), withhold the employee half, add their own, and settle monthly or quarterly with year-end declarations. Unemployment insurance (ALV, 2.2% up to the ceiling) rides the same rails. The AHV number doubles as the general social insurance identifier.
For classification, AHV offices are also the arbiter of self-employment: they recognise — or refuse — independent status, which is why single-client contractors in Switzerland so often end up payrolled. See Quellensteuer and BVG/LPP for the neighbouring layers.
FAQ
Do foreign employees pay AHV?
Yes — everyone employed in Switzerland contributes from salary, regardless of nationality or permit, unless an A1 or bilateral certificate keeps them in a home system during an assignment. Years contributed create Swiss pension entitlements, exportable under coordination rules for most nationals.
Is there a salary ceiling for AHV?
No — AHV/IV/EO contributions apply to the full salary without cap, unlike ALV (ceiling CHF 148,200) and BVG’s insured-salary mechanics. High earners’ marginal Swiss social cost is therefore lower than the headline stack suggests, but AHV itself never switches off.