Understanding salary: gross and net made simple

Gross appears in your contract, net is what reaches your bank account – after social security contributions (AHV/ALV/NBU/BVG) and, if applicable, withholding tax.

AHV: pension for old age and survivors.

ALV: protection in case of unemployment.

NBU: accident insurance for non-work-related accidents.

BVG (pension fund): additional savings for retirement/disability/death.

These are investments in your security, not “money disappearing into nothing”.

Without a C permit (or if you live abroad but earn income in Switzerland), the employer deducts your income tax directly from your salary.

As a rule of thumb: gross minus about 12–16 percent equals your net salary (depending on age, canton and personal situation).

5,000 francs gross equals roughly 4,200 francs net.

Consider the full package: for example a GA travel card, company car, pension fund contributions, extra vacation days or training. This can make a difference of thousands of francs per year.

Check the median salary (not just the average): in 2022 it was around 6,800 francs. Managers earn significantly more, simple operational roles often much less. Regions matter too (e.g. Zurich/Zug vs. Jura).

Use official salary calculators or statistics and industry benchmarks; combine them with your skills, responsibilities and location.

Tip 1: Say “adjustment” instead of “raise”.

Tip 2: Provide proof of your performance (projects, extra responsibilities, measurable results).

Tip 3: Be specific – mention numbers and alternatives (vacation days, GA, training).

In a salary negotiation, 3–10% is realistic. When changing jobs, it can be more – with a strong justification.

“I have taken on new projects and responsibilities. I see myself at a salary adjustment of 7%. Alternatively, an additional vacation day.”

Build an emergency fund (for example 3–6 months of expenses). With savings in the background, you negotiate more confidently and don’t have to accept every offer.