Registration Guide

Simplified Settlement Procedure for nannies: when is it worth it?

The Simplified Settlement Procedure (vereinfachtes Abrechnungsverfahren) is the least painful way to register a part-time nanny - a flat withholding tax, OASI/ALV/FAK in a single step, no occupational pension affiliation. But who is it really suited for, and where are the catches?

Reading time: 5 min · Last updated: April 2026

The 30-second answer

✓Simplified Procedure = flat 5% withholding tax + OASI/ALV/FAK in one step via the cantonal compensation office.
✓Wage ceiling 2026: up to CHF 22,680 per year and employer.
✓Worth it for: under 15 hrs/week, single family, no occupational pension needed.
✓NOT worth it for: full-time nannies, families planning a second child, nannies who want a standard tax return.

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) is also included via VAVplus - so you no longer have to deal with an insurer separately.

Wage ceiling 2026: CHF 22,680 per year

Per employer and per year, the gross wage must not exceed CHF 22,680 - which is exactly the same as the 2026 BVG entry threshold (also CHF 22,680). As soon as you pay more, the nanny drops out of the Simplified Procedure and you have to switch to standard OASI registration (with occupational pension, separate withholding-tax table, etc.). Keep an eye on the running annual total - if you realise in autumn that you'll edge over, switching early is much less painful than getting corrected retroactively by the compensation office.

Rule of thumb: the Brunner family in Aarau pays their nanny Aleksandra CHF 30/hour. At 14 hours a week × 50 weeks that's CHF 21,000 - just under the threshold. Next year the family is planning a second child - that would be 18 hours a week and CHF 27,000. As soon as that's on the cards, it's worth switching to the standard procedure from the start.

The threshold applies per employer. If your nanny also works for the Schmidt family, she can also earn up to CHF 22,680 there under the Simplified Procedure - each employer counts separately.

Simplified vs. Standard Procedure

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 occupational pension contributions → nanny builds up no second pillar (risk at retirement)
−5% withholding tax tends to be too high for low wages - no tariff correction possible
−Daily sickness benefit (KTG) usually not included - long illness leaves the nanny unprotected
−Switching to the standard procedure mid-year because of a wage increase above CHF 22,680 is a hassle
−The salary certificate is 'light' - limited for visa, mortgage applications or rental contracts of the nanny

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 hours over the next 6-12 months (e.g. second child, return from maternity leave)
⚠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
⚠You need a detailed salary certificate (e.g. for family reunification or the nanny's residence permit)
⚠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

1Choose the compensation office of your canton of residence (e.g. SVA Zürich, OCAS Geneva, AK Bern). It's the central body for VAV.
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.
3You receive an employer number + UVG policy (via VAVplus since 2025).
4At year-end: you receive the final statement and transfer the amount due (typically ~19-20% of the gross wage: c.6.4% OASI employer + 6.4% OASI employee + 5% withholding tax + ~2% accident insurance).
5Salary certificate for the nanny: provided by the compensation office or issued by you.

💡 With Clino: no forms, no stress

Clino checks whether the Simplified Procedure makes sense for you, registers you accordingly and handles the statement. If you exceed the ceiling, we switch you to the standard procedure automatically - with no gap.

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Clino checks for free whether the Simplified or Standard Procedure is optimal for your nanny - and registers you accordingly. OASI, accident insurance and monthly payslips included. CHF 19.90/month.

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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 compensation office settles the first months under VAV and the rest under the standard scheme. 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?

No. In a household, one family counts as one employer. The threshold per employer is not divisible.

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, VAVplus automatically includes UVG accident insurance in the Simplified Procedure. Previously you had to take out UVG separately (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?

No. Under VAV the withholding tax is final - no refund possible. That's exactly the trade-off: simpler, but potentially a little more expensive for the nanny than the cantonal table. The standard procedure would allow a tariff correction (NOV).

Sources

Federal Social Insurance Office - leaflet 2.07 'Simplified Settlement Procedure' (as of 2026): bsv.admin.ch
Federal Act against Undeclared Work (BGSA), SR 822.41, Art. 2
VAVplus since 2025: Suva information on automatic UVG inclusion
FTA - withholding tax under the Simplified Procedure (flat 5%)

Wage ceiling CHF 22,680 = the 2026 BVG entry wage (CHF 22,680). Subject to annual adjustment.