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Registration Guide

Simplified procedure for your nanny: are you actually eligible - and for how much longer?

First, because almost every page gets this wrong: the simplified procedure is not the cheaper option. The social-insurance contributions stay essentially the same, and the 5% withholding tax is deducted from your nanny's wage - it is not a surcharge on you. What differs is mainly how you settle it and how her wage is taxed. So the real question is: do you meet the conditions, and will you still be under the limit in December?

Reading time: 5 min · Last updated: August 2026

The 30-second answer

  • ✓No discount: AHV/IV/EO, ALV, FAK and UVG are due under both procedures. The paperwork is simplified, not the bill.
  • ✓Two limits, both apply: max. CHF 22'680 per employee per year AND max. CHF 60'480 total household payroll.
  • ✓The 5% withholding tax (0.5% federal + 4.5% cantonal/communal) is deducted from her wage and forwarded to the compensation office.
  • ✓Watch out: for employment shorter than a year, a BVG obligation can arise despite the simplified procedure. Check below.

What is the Simplified Procedure?

Introduced in 2008, the Simplified Settlement Procedure (VAV) aims to reduce undeclared work in private households - by cutting paperwork. It bundles four things into a single statement with the compensation office:

  • ●OASI / IV / EO (social insurance)
  • ●ALV (unemployment insurance)
  • ●A flat 5% withholding tax - replaces the cantonal tax table
  • ●FAK (family allowance contributions)

You as the family transfer one combined amount (employee deductions + employer share) to the cantonal compensation office. The office forwards the withholding tax to the tax administration automatically. Since 2025, accident insurance (UVG) can also run through the office via VAVplus, in all 26 cantons. VAVplus is an opt-in, not automatic. Without it you still arrange UVG yourself with an insurer.

Wage ceiling 2026: CHF 22,680 per year

There are two limits, not one, and both must hold: the gross wage may not exceed CHF 22'680 per employee per year, and your household's total payroll may not exceed CHF 60'480. There is also a third condition that often goes unnoticed: ALL employees subject to contributions must be settled under the simplified procedure. You cannot run the nanny under the simplified procedure and the cleaner under the ordinary one.

The figure tested is the AHV-liable wage, not the cash alone. Holiday compensation, a 13th month's salary, bonuses and board and lodging all count. That is exactly where households come unstuck after sitting comfortably below the limit on paper: a few extra evenings, a pay rise in summer, the 8.33% holiday supplement inside the hourly rate - and by November the condition is gone.

The limit applies per employer. If your nanny also works for another family, that wage does not count here - for whether the procedure is available. For her own tax burden, however, her other income matters very much; see below.

Are you eligible - and how much room is left?

The check works on the AHV-liable wage, so including the holiday supplement, a 13th month's salary and board and lodging. It does not tell you whether the simplified procedure is cheaper - it usually isn't - but whether you meet the conditions and how much room is left before the limit.

Simplified-procedure check

Your figures, the two limits and the room that is left.

Simplified procedure available

This employee's wageCHF 21'839 / 22'680
Household payrollCHF 21'839 / 60'480
Room to the limitCHF 841
That is roughly 22 additional hours a year.
Withholding tax 5% - deducted from her wageCHF 1'092

This amount is not a surcharge on you: you deduct it from the wage and forward it to the compensation office.

Indicative figure based on your entries. Your compensation office's assessment is what counts.

Simplified vs. Standard Procedure

FeatureSimplifiedStandardWage ceiling≤ CHF 22,680/yearUnlimitedWithholding taxFlat 5%Cantonal tableOASI reportingOnce a yearQuarterly/monthlyOccupational pension (BVG)Usually no - exception under 1 yearYes, from CHF 22,680Salary certificateNo Lohnausweis: certificate from the compensation officeLohnausweis issued by the employerTax return for nannyWage taxed separately at 5%Ordinary assessment or withholding tax

Pros and cons

Advantages

  • +Minimal paperwork - one statement per year instead of quarterly filings
  • +No separate cantonal withholding-tax table (flat 5%)
  • +No occupational pension affiliation needed (below CHF 22,680)
  • +Since 2025: accident insurance (UVG) via VAVplus (opt in when you register)
  • +Clearly defined flat rates - no calculation errors

Disadvantages

  • −No BVG contributions in the normal case - your nanny builds no second pillar on this wage.
  • −The 5% is a flat rate that ignores her personal situation: no professional expenses, no social deductions, no other income. Whether that is cheap or expensive for her depends on her tax situation - for someone with further income, separate taxation at 5% is often clearly favourable; for someone with a very low total income it can exceed the ordinary burden.
  • −If the limit is exceeded, the condition for the procedure is simply no longer met - and you have to clarify with the compensation office how the current year gets corrected.
  • −Switching to the standard procedure mid-year because of a wage increase above CHF 22,680 is a hassle
  • −She receives no ordinary Lohnausweis but a certificate from the compensation office. For a visa, a rental application or a mortgage that tends to carry less weight.

To be settled regardless of the procedure

UVG, daily sickness benefits or continued wage payment, and depending on the case BVG, are separate questions. Neither the simplified nor the ordinary procedure answers them. Daily sickness benefits are therefore not a disadvantage of the simplified procedure but something you have to arrange either way.

Three traps almost every guide skips

1

"Simplified procedure means no BVG." True only most of the time. If the employment lasts less than a year and the monthly wage exceeds CHF 1'890, BVG contributions can still be due. Example: six months at CHF 3'000 comes to CHF 18'000 for the year - comfortably below the limit, because for shorter employment the wage actually earned counts and is not annualised. The BVG question still arises.

2

"Settling once a year means deducting once a year." No. The report to the compensation office is annual; the deduction from the wage is monthly. Confuse the two and in January you face a bill you would have to recover retroactively from your nanny's wage.

3

"My nanny works for three families, over CHF 22'680 in total - so the simplified procedure is out." It isn't. The limit applies per employer. Her other income changes nothing about eligibility - but a great deal about whether the 5% is a good deal for her.

When Clino does NOT recommend the Simplified Procedure

We only recommend the Simplified Procedure if the nanny is genuinely part-time and the wage ceiling clearly won't be exceeded. In the following cases I'd advise the standard registration:

  • ⚠You plan to increase the hours over the coming months. The triggering event is not the second child, it is the higher wage.
  • ⚠Your nanny actively wants to build a pension - e.g. because she plans to stay in Switzerland long term
  • ⚠You employ other household staff besides the nanny (e.g. a cleaner) and your total payroll as one employer exceeds CHF 60,480 per year
  • ⚠Your nanny needs an ordinary Lohnausweis (family reunification, residence permit, rental dossier).
  • ⚠You want daily sickness benefit (KTG) as standard protection - VAV does not include it

A practical trick: if you're only just below the threshold, start with the standard procedure right away. The extra effort per year is manageable, but switching mid-year is significantly more painful than the initial registration.

How to register for the Simplified Procedure

  1. 1Choose the compensation office of your canton of residence (e.g. SVA Zürich, OCAS Geneva, AK Bern). It's the central body for VAV.
  2. 2Fill in the 'Simplified Procedure registration form' - usually online, takes 15 minutes. You'll need: nanny's OASI number, her address, your gross wage plan, residence permit.
  3. 3You receive an employer number + UVG policy (via VAVplus since 2025).
  4. 4At year-end you report the wages paid to the compensation office and receive the final statement. Important: settling once a year does NOT mean deducting once a year - the employee contributions and the 5% withholding tax come off the wage every month. Forget that for a year and you will have to deduct a four-figure amount from your nanny's wage at the end, or carry it yourself.
  5. 5Salary certificate for the nanny: provided by the compensation office or issued by you.

💡 With Clino you keep the limit in view

Clino calculates the AHV-liable wage every month, shows you how much room is left before the limit, and guides you through registering with your compensation office - you submit the form yourself, and the office registers you.

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Frequently asked questions

What happens if my nanny crosses CHF 22,680 mid-year?
You must switch to the standard procedure immediately. The calendar year is not split in two: once a condition of the simplified procedure falls away, compensation offices settle the whole year under the standard scheme, retroactively to 1 January. In practice it's a hassle - which is why we recommend the standard procedure from the start if you've clearly planned an increase.
Can both parents register as separate employers to double the threshold?
We advise against it. When one nanny looks after one household, that is one employment relationship - artificially splitting the contract between both parents purely to double the limit is an avoidance construction, and the compensation office judges the actual facts. If you genuinely are in this situation, ask your compensation office in writing beforehand rather than trying it on.
Does my nanny still earn OASI credits under the Simplified Procedure?
Yes, fully. The OASI contributions are processed normally and recorded on her OASI account - they count towards her future pension. Only the procedure is simplified, not the benefit reduced.
What is VAVplus and how does it differ?
Since January 2025 all 26 cantonal compensation offices offer VAVplus: accident insurance (UVG) then runs through the office instead of a separate contract. Important: VAVplus is opt-in, not automatic. You have to register for it explicitly. If you do not, you still need your own UVG policy (e.g. with Suva or a private insurer). More details in our dedicated VAVplus article.
Can my nanny reclaim the 5% withholding tax if she should actually have paid less?
Normally not: the 5% has final effect, so her wage is taxed separately and conclusively. Double-taxation treaties are the exception. Example: for cross-border workers resident in Germany the treaty caps Swiss taxation at 4.5%, so the 0.5% direct federal tax can be reclaimed. Under the ordinary procedure, by contrast, a tariff correction would be possible.

Sources

  • FSIO - Leaflet 2.07 "Simplified settlement procedure for employers" (limits, 5% split, certificate instead of Lohnausweis): ahv-iv.ch
  • FSIO - Leaflet 6.06 "Obligation to join an occupational benefits institution under the BVG": ahv-iv.ch
  • Federal Act on Combating Undeclared Work (BGSA), SR 822.41; DBG Art. 37a: fedlex.admin.ch
  • SECO - Simplified settlement procedure for small payrolls: seco.admin.ch

2026 limits: CHF 22'680 per employee (= BVG entry threshold) and CHF 60'480 total payroll. Annual adjustment possible.

Salvador Jovells

Salvador Jovells, founder of Clino