Decision guide
Simplified or ordinary AHV procedure: which one should your household use?
Your procedure in four questions
Only the rules that actually decide it.
1 of 4Does one of your employees earn more than CHF 22'680 a year (including board and lodging, holiday supplement and 13th salary)?
In short: below both limits the simplified procedure is usually the easier choice; above them only the ordinary one remains. If no employee earns more than CHF 22'680 a year and you pay all of them together at most CHF 60'480, you may choose. AHV/IV/EO and ALV contributions are the same in both procedures. The simplified procedure saves work: one settlement a year, the 5% flat withholding tax, no salary certificate. Above these limits the ordinary procedure is mandatory, plus the pension fund above CHF 22'680 per person.
Source: BGSA Art. 2 and 3, AHV leaflet 2.07 (as of 1.1.2026), WBB guideline no. 2103 to 2114. Checked on 25.09.2026.
What differs and what does not
| Topic | Simplified | Ordinary |
|---|---|---|
| Who may use it | Wage up to CHF 22'680 per person and CHF 60'480 per household; all employees in the same procedure | Always possible |
| Social contributions | AHV/IV/EO 10.6%, ALV 2.2%, split half and half, plus the canton's family allowance contribution | Same rates |
| Withholding tax | 5% for every employee, via the compensation office; the tax is then settled | Only for employees without a C permit, at their canton of residence's rate, paid to the cantonal tax office; Swiss citizens and C-permit holders file their own taxes |
| Payment | Once a year: report the payroll by 30 January, pay the invoice within 30 days, no advance payments | Advance contributions during the year (monthly or quarterly, depending on the office), wage report after year end |
| Salary certificate | None; the employee receives a certificate of the tax paid from the office | Mandatory every year |
| Accident insurance | Possible via the compensation office (VAVplus) or your own policy | Your own policy with an accident insurer |
| Pension fund | Usually not; exception for jobs under a year paying more than CHF 1'890 a month | Mandatory above CHF 22'680 annual wage, with membership of a pension fund |
| Monthly payslip | Mandatory (CO Art. 323b) | Mandatory (CO Art. 323b) |
What counts as wage, and how the limit is cut for a start partway through the year, is in the 2026 thresholds.
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Frequently asked questions
Do I have to use the simplified procedure if I am below the limits?
No, it is a choice. You may settle under the ordinary procedure below the limits too. Not the other way round: above CHF 22'680 per person or CHF 60'480 per household only the ordinary procedure remains.
Can I switch procedure during the year?
Voluntarily only on 1 January. To move from the ordinary to the simplified procedure, tell the compensation office by the end of the previous year (leaflet 2.07, no. 9).
What happens if the wage rises above CHF 22'680 during the year?
Then you no longer meet the conditions, and the office settles the whole calendar year from 1 January under the ordinary procedure, not only the months after the limit was crossed (BGSA Art. 2 para. 1; written answer from SVA Graubünden of 7.8.2026). So plan pay rises for the turn of the year.
Which deadlines apply in the simplified procedure?
Register within one month of the start of the employment. Report the payroll by 30 January of the following year and pay the invoice within 30 days. All these dates go straight into the employer deadline calendar. Missing these deadlines risks default interest and exclusion from the simplified procedure (leaflet 2.07, no. 10).
Do I pay lower contributions in the simplified procedure?
No. AHV/IV/EO (10.6%) and ALV (2.2%) are the same in both procedures and are split half and half between you and the employee. The difference lies in tax, effort and payment rhythm. What that means in francs for your wage is shown by the salary calculator.
What are the downsides of the simplified procedure?
The 5% withholding tax is final and applies to every employee, Swiss citizens included: no one can opt out individually. If one wage rises above CHF 22'680, the whole year is settled under the ordinary procedure. More on this: downsides of the simplified procedure.
Does the simplified procedure also work for a nanny?
Yes, as long as her annual wage does not exceed CHF 22'680, including holiday pay and, for a live-in nanny, board and lodging. That only covers a part-time nanny; a full-time nanny belongs in the ordinary procedure. How many hours fit: simplified procedure for a nanny.
Is the notification procedure the same as the simplified procedure?
No. The notification procedure is a report to the SEM when someone from the EU/EFTA works for you for up to three months. It has nothing to do with AHV settlement: even such a short job needs the AHV registration, under the simplified or the ordinary procedure. More on this: notification procedure or AHV registration.
What about the chèque service in French-speaking Switzerland?
It is not a settlement procedure of its own but an office that handles registration and payslips for you, for a fee. Only Geneva has a cantonal chèque service; elsewhere in Romandie it is called chèque emploi. Contributions and obligations stay the same. Canton by canton: chèque service in French-speaking Switzerland.
Do it yourself or with Clino
Doing it yourself works: the compensation office's form, payslips, the annual report. Clino prepares the registration, monthly payslips and the annual report in either procedure for you. CHF 19.90/month, 30 days free.
Start for freeSources
- ahv-iv.ch: Merkblatt 2.07 (vereinfachtes Abrechnungsverfahren), Stand 1.1.2026
- ahv-iv.ch: Merkblatt 2.06 (Hausdienstarbeit), Stand 1.1.2026
- Fedlex: BGSA Art. 2 und 3 (Bundesgesetz gegen die Schwarzarbeit)
Overview, not legal or tax advice. As of 25.09.2026.