Payroll News Q4 2022 – Switzerland
ARAGO Consulting supports companies in their digital transformation, offering innovative HR cloud services and solutions to optimize your HR operational processes. Did you know we also have a team of payroll experts, experienced in implementing, integrating, migrating and supporting payroll solutions using SAP’s best in class offering around SAP Payroll and SAP Employee Central Payroll?
Whether you are already using SAP payroll solutions, have plans to start using them or want to find out more about what such solutions can do to help improve your payroll function, ARAGO Consulting will be more than happy to support you.
With this newsletter, we want to highlight a few upcoming changes which might impact your current payroll system. Do not hesitate to reach out to us for more information about how to handle them in your SAP payroll solution.
2023: no more unemployment insurance solidarity contributions
Since 2011, all annual salaries above the unemployment insurance contribution threshold of 148.200 CHF have been subject to a solidarity contribution of 1%. This contribution was intended to bring in several million CHF for the unemployment insurance system to restore it’s financial situation. This solidarity contribution will be abolished as of 1 January 2023.
According to the source below: It is important that companies and employees are informed on time about this change in social insurance contributions. The AVS (association vieillesse et survivants) – or the FSIO (Federal Social Insurance Office) responsible for the AHV – is responsible for this. The AHV compensation funds will inform employers in good time of the employee contributions to the AHV from 1 January 2023.
Source : Admin.ch
2023 : new BVG (pension fund) threshold
| Today | From 1st January 2023 | |
| Minimum Annual Salary (access threshold) | 21.510 CHF | 22.050 CHF |
| Coordination deduction | 25.095 CHF | 25.725 CHF |
| Maximum determining AHV salary | 86.040 CHF | 88.200 CHF |
| Maximum coordinated salary | 60.945 CHF | 62.475 CHF |
| Minimum coordinated salary | 3.585 CHF | 3.675 CHF |
The entry threshold for the mandatory BVG will rise from 21.510 to 22.050 CHF in 2023. The coordination deduction will increase from 25.095 to 25.725 next year.
Source : BSV
2023: Minimum wage increase in the canton of Geneva
Since 2020, a minimum wage has been in force in the canton of Geneva. The minimum hourly wage in 2020 was 23.00 CHF. It increased to 23.14 CHF in 2021, then to 23.27 CHF at the beginning of 2022, and finally to 24.00 CHF from 1 January 2023.
According to information from the confederation: The wage provisions of the LIRT (Labour Inspection and Relations Act) apply to all economic sectors except agriculture and horticulture, which are governed by other legal provisions. The law makes exceptions for apprenticeship contracts, internship contracts and contracts with au pairs under the age of 18. All other employees working in the canton of Geneva must receive the minimum remuneration provided for by the LIRT.
We would like to point out that the amount of 24.00 CHF includes the hourly wage and the various allowances that may be paid (for holidays or public holidays for example).
You can find more information on our source below.
Source : EDA
ARAGO and its experts are at your disposal for all your payroll needs. Do not hesitate to contact us and make an appointment with us.
