Payroll accounting in Switzerland: How SMEs create it correctly and in compliance with the law

Payroll in Switzerland for SMEs: The right way

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A payslip shows in detail what an employee's salary is made up of. It serves both employers and employees as official proof of income, deductions and social benefits.

It is important for Swiss SMEs to prepare these statements correctly and in accordance with the law — not only for reasons of transparency, but also to avoid liability risks.

Legal basis

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In Switzerland, payroll is clearly regulated by law. The most important provisions can be found in:

• Code of Obligations (OR, Art. 323b) — Duty to issue a payslip

• AHVG/IVG/ALVG — social security deductions

• BVG — occupational benefits

• UVG — accident insurance

• Withholding tax ordinance — for foreign employees without a C permit

Employers are required to document every payroll in a comprehensible manner and to calculate all relevant deductions correctly.

Requirements for a correct payslip

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For a payslip to be legally compliant, the following requirements must be met:

There is a valid employment contract.

The billing period is clearly defined (e.g. monthly).

All social security contributions and taxes are calculated properly.

Supplements (e.g. overtime, night work, expenses) are shown correctly.

Mandatory information on the payslip

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A complete payslip contains at least the following information:

• Name and address of employer

• Name and address of the employee

• Billing period

• Gross wage

• Deductions (AHV/IV/EO, ALV, BVG, UVG, NBU, withholding tax, etc.)

• Net salary (amount paid out)

• Bank details and payment date

Example of a payslip

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💡 Tip: Use payroll software or work with a trustee. This saves time and minimizes errors — particularly with social security contributions and withholding tax.

Common mistakes in payslips

1. Missing or incorrect social security deductions

→ leads to back payments or AHV corrections

2. Allowances or expenses not included

→ can lead to disagreements with employees

3. Unclear wage components

→ makes it difficult to trace revisions

Conclusion

A correct payslip is more than just a requirement for Swiss SMEs — it is a sign of professionalism and trust.

Those who comply with legal requirements and create clear structures not only make accounting easier, but also strengthen the relationship with employees.

Would you like to simplify your payslips?

Our team helps you with legally compliant payroll processing and ensures smooth billing in your SME. Contact us.