AHV social security for employees
Step by step
- 1
Know what the first pillar covers
AHV/AVS pays old-age and survivors' pensions. IV/AI covers disability. EO/APG replaces income during military, civil service and maternity/paternity leave. Unemployment insurance (ALV/AC) is a separate branch on the same payslip.
- 2
Contributions are split with the employer
AHV/IV/EO is deducted at source as a percentage of gross salary and matched by the employer. ALV/AC is added on top up to a statutory salary ceiling. Exact rates are set federally and published by the BSV/OFAS — always check the current AHV information sheet for the year in question. <!-- VERIFY: current AHV/IV/EO combined rate and ALV ceiling for the current year -->
- 3
Get and keep your AHV number
Your AHV number (format 756.XXXX.XXXX.XX) is issued by the central compensation office and appears on your health-insurance card and Lohnausweis. It is your lifelong social-security identifier — do not create a new one when you change job or canton.
- 4
Check your Individual Account (IK/CI) every few years
The Individuelles Konto / Compte individuel records every year of contributions. Order a free extract from your last cantonal compensation office (Ausgleichskasse / caisse de compensation) — errors are common when employers change or during international transfers, and are easiest to correct while employers still exist.
- 5
Understand the contribution-year rule
The AHV old-age pension is calculated from your average earnings AND from complete contribution years between age 20 (or 21) and retirement. Every missing year cuts the pension by roughly 1/44th. Newcomers who arrive mid-career therefore always start with a scaled pension unless bilateral totalisation applies.
The three-layer Swiss retirement system in one paragraph
The first pillar (AHV/AVS) guarantees a minimum living standard and is pay-as-you-go — today's employees fund today's pensioners. The second pillar (BVG/LPP occupational pension) is a mandatory funded plan tied to your employer once salary exceeds a statutory threshold. The third pillar (3a and 3b) is voluntary private saving with tax advantages. This page covers pillar 1 only; the third pillar has its own guide.
Why 'contribution years' matter more than salary
The AHV old-age pension is capped: even very high earners cannot exceed the maximum single pension. What decides where inside the scale you land is the number of complete contribution years between the year you turn 20 (contributions start on 1 January of the year after your 20th birthday) and retirement. Full pension currently requires 44 years for men and 43 for women (transition schedule to 44 in progress under AHV21). Every year missing cuts the pension by about 1/44th, permanently.
Mid-career arrivals: the gap problem
Someone who arrives in Switzerland at 35 will only ever have around 30 years of Swiss contributions — a partial AHV pension by design. Bilateral agreements let earlier foreign years count for eligibility (you're 'insured'), but each country still pays only for its own years. This is why the Swiss second and third pillars matter so much for newcomers: they are the only pillars you can meaningfully catch up on.
Leaving Switzerland: refund vs deferred pension
If you're a national of an EU/EFTA country or of a country with a social-security agreement (list published by the BSV/OFAS), your Swiss AHV contributions stay on your record and pay out as a deferred pension from Swiss retirement age, wherever you live. If you're a national of a state without an agreement, you can apply for a lump-sum refund of your own contributions (not the employer share) after departure. Most EU/US/UK/Canada/Australia newcomers keep the deferred pension; they cannot cash out.
Employed vs self-employed
Employees have AHV/IV/EO/ALV deducted at source and reported on the Lohnausweis. Self-employed people register with a cantonal Ausgleichskasse / caisse de compensation, pay quarterly instalments based on estimated net income, and are reconciled to actual profit after the tax assessment. Self-employed people are NOT covered by ALV/AC unemployment insurance.
Your next step
Turn this guide into action — run the numbers for your own situation, then work through the deadlines for your canton.
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Build my free checklistMissing contributions from your first calendar year of Swiss residence are a classic gap — if you arrived mid-year without employment, you may need to pay the minimum non-working contribution to keep the year complete.
Self-employed people are responsible for their own AHV contributions and must register with a compensation office. Under-reporting income leads to back-billing plus interest.
Refunds of AHV contributions on leaving Switzerland are available only to nationals of countries without a social-security agreement with Switzerland — most newcomers are NOT eligible for a refund and keep a deferred pension entitlement instead.
People also asked
Where do I see AHV on my payslip?
Look for a deduction line labelled 'AHV/IV/EO' (or 'AVS/AI/APG' in French, 'AVS/AI/IPG' in Italian) and a separate 'ALV/AC' line. Both are shown as percentages of your gross salary and repeat on the annual Lohnausweis / certificat de salaire.
Do years I worked abroad count?
Switzerland has bilateral or multilateral social-security agreements with the EU/EFTA and many other countries. Under these, foreign insurance periods are totalised for the eligibility test (minimum 1 year of Swiss contributions) but each country pays its own share. Without an agreement, foreign years do not count.
What happens to my AHV if I leave Switzerland?
Nationals of EU/EFTA states and of countries with a social-security agreement keep a deferred pension, paid from Swiss retirement age wherever they live. Nationals of non-agreement states can request a lump-sum refund of their own contributions (not the employer share) shortly after departure. See our dedicated guide.
Are non-working spouses covered?
Yes — anyone resident in Switzerland from age 20 must contribute. Non-working spouses of an insured working partner are deemed covered if the working spouse pays at least twice the minimum contribution; otherwise the non-working person pays a minimum non-working contribution directly to the cantonal compensation office.
How does self-employed AHV differ?
Self-employed contributions are calculated on net income at a lower headline rate than the employed combined rate (there is no employer share to match). You register with a cantonal compensation office as soon as the activity starts and pay quarterly instalments.
Official sources for this guide
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