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UPDATED JUL 7, 2026💡 What to expect for employee benefits when you hire in Switzerland through Toku. Swiss law mandates two employer-provided benefits - accident insurance (UVG) and an occupational pension (BVG) - both set up automatically by Toku.
At a Glance
| Item | Detail |
|---|---|
| Accident insurance (UVG) | Mandatory; occupational portion 100% employer-paid |
| Non-occupational accidents (NBU) | Covered for employees working 8+ hours/week; employee-paid via payroll |
| Occupational pension (BVG) | Mandatory; contributions split 50/50 employer/employee |
| BVG eligibility | Age 17+, earning CHF 22,680+/year, contract of 3+ months |
| Enrollment | Automatic - backdated to start date |
| Retirement age | 65 (early retirement from 58) |
Accident Insurance (UVG)
Mandatory coverage for work-related accidents, commuting accidents, occupational diseases - and non-work accidents for employees working at least 8 hours/week. Coverage applies from day one, during working hours and personal time. The occupational portion is 100% employer-paid; the non-occupational portion (NBU) is deducted from the employee's salary via payroll. Coverage continues for 30 days after employment ends, and employees can purchase an extension (Abredeversicherung) directly from the insurer.
Occupational Pension (BVG)
Employees are automatically enrolled (backdated to start date) if they are 17 or older, earn more than CHF 22,680/year, and have a contract of at least 3 months. Contributions are age-banded on the pensionable salary and split 50/50 between employer and employee:
| Age group | Total | Employer | Employee |
|---|---|---|---|
| 25 - 34 | 12% | 6% | 6% |
| 35 - 44 | 14% | 7% | 7% |
| 45 - 54 | 19% | 9.5% | 9.5% |
| 55 - 65 | 22% | 11% | 11% |
Pensionable salary = gross annual salary minus the coordination deduction of CHF 26,460, up to the maximum insurable salary of CHF 90,270 (e.g., CHF 80,000 gross → CHF 53,540 pensionable). The employer's 50% is billed to the client; the employee's 50% is deducted from payroll.
Plan benefits include retirement capital with annual BVG-linked interest (pension or lump sum at retirement), a disability pension with continued contributions during disability, and survivor benefits (spouse/partner pension, orphan's pension, lump-sum death benefit where applicable). Standard retirement age is 65, with early retirement possible from 58.
What Clients Need to Know
- Both benefits are statutory - you can't opt out, and the employer-side costs (occupational accident premium + half of BVG) should be planned into every Swiss hire.
- First-month payroll may use estimated deduction values that are trued up once final BVG figures are confirmed.
- For workplace accidents, the employee notifies their manager/HR and Toku coordinates the claim with the insurer.
Last verified July 2026. This guide is for general information and doesn't constitute legal or tax advice. Questions? Contact [email protected].