Glossary: Household Employment & Payroll
From AHV to simplified procedure — all key terms around the legal employment of domestic workers in Switzerland, explained clearly.
13th salary
The 13th salary is an additional wage payment at year-end. For domestic workers in private households, it is not legally required — if agreed, it must be written into the employment contract. With hourly pay, it is typically added as an 8.33 % supplement on top of the gross wage; with monthly pay, as a 13th payout in December.
AHV (Old-Age and Survivors' Insurance)
The AHV is the first pillar of the Swiss old-age provision system and a mandatory social insurance. Employer and employee each pay 5.3 % of the gross wage. Domestic workers must be registered with the AHV from the first franc earned — there is no de minimis threshold for private households.
AHV number (social security number)
The AHV number (13-digit format since 2008, beginning with 756) is the personal identification number for all social insurances. It appears on the insurance card and is required for every domestic-worker registration. Without an AHV number, registration with the compensation office is not possible — people who don't have one are assigned one at first registration.
ALV (Unemployment Insurance)
ALV provides financial protection for employees in case of job loss. The contribution rate is 2.2 % of the gross wage (1.1 % each from employer and employee), on wages up to CHF 148,200 per year. Domestic workers are also subject to ALV unless registered under the simplified procedure.
Annual wage declaration
The annual wage declaration is the yearly wage report to the compensation office. Employers must submit, by the end of January, the wages paid in the previous year so that the final social insurance contributions can be calculated. Clino creates the declaration automatically from your payslips.
Business expenses
Business expenses are outlays the domestic worker incurs on behalf of the employer — e.g. shopping, travel between multiple workplaces, or material purchases. Genuine expenses are not wages and are not subject to social insurance deductions. They must, however, be documented and shown separately on the payslip, otherwise they are treated as wage for tax purposes.
BVG (Occupational pension / 2nd pillar)
BVG is the occupational pension (pension fund) and forms the 2nd pillar of retirement provision. BVG coverage becomes mandatory from an annual wage of CHF 22,680 (entry threshold 2025). For most domestic workers paid hourly, this threshold is not reached — check the annual wage carefully.
Compensation office (Ausgleichskasse)
The Ausgleichskasse (compensation office) is the cantonal authority that collects and manages AHV, IV, EO and ALV contributions. As the employer of a domestic worker, you register with your cantonal compensation office and account for social security contributions there — or you use the simplified procedure.
Continued pay during illness
If a domestic worker falls ill, she is entitled to continued wage payment — provided the employment lasts longer than 3 months or is intended to do so (Art. 324a CO). The duration follows the Bern, Basel or Zurich scale (depending on the cantonal court): from 3 weeks in year 1 up to 6 months from year 30. KTG insurance can extend continued payment up to 720 days.
Cross-border workers (Grenzgänger)
Cross-border workers (Grenzgänger) live in a neighbouring country and work in Switzerland — returning to their foreign residence at least once a week. They need a Permit G and are subject to special rules for social insurance and withholding tax. Common in the cantons of Geneva, Basel, Ticino and Schaffhausen.
Domestic worker
Domestic worker is the legal term for a person carrying out cleaning, care or childcare duties in a private household. It includes cleaners, nannies, childcare workers and elderly carers. Legally, they are employees — not self-employed.
Duty of loyalty & duty of care
Domestic workers owe their employer duties of loyalty and care (Art. 321a CO). These include confidentiality about personal and family matters, careful handling of the household's property, refusing gifts from third parties and avoiding competing activity that harms the employer. Breaches may lead to wage deductions or dismissal.
Employment contract
The employment contract sets out the terms of employment in writing: wage, working hours, holidays, notice period, probation and duties. Although Swiss law also recognises oral contracts, the written form is strongly recommended for domestic workers — it prevents disputes and protects both parties. Clino generates legally compliant contracts automatically in multiple languages.
Employment reference (work certificate)
Domestic workers have a legal right to an employment reference (Art. 330a CO). There is the full reference (evaluating performance and conduct) and the simple employment confirmation (duration and role only). The reference must be truthful, complete and favourably worded. During the employment, an interim reference can be requested at any time.
EO (Loss of Earnings Compensation)
EO compensates employees for loss of earnings during military service, civil service and maternity (as well as paternity since 2021). The contribution rate is 0.5 % (0.25 % each from employer and employee). EO is collected together with AHV/IV contributions through the compensation office.
FAK (Family Compensation Fund)
FAK funds family allowances (child and education allowances). Depending on the canton, the rate varies between 1.0 % and 3.0 % of the gross wage and is paid entirely by the employer. Employers of domestic workers are also subject to FAK contributions.
False self-employment
A cleaner who works only for one or a few private households, follows instructions and brings no own tools or insurance is not self-employed in legal terms — even if she issues an invoice. The compensation office reclassifies such relationships as dependent employment, leading to back payments charged to the household. A receipt or invoice therefore does not exempt you from the duty to register.
Family allowances (child and education)
Family allowances are state benefits for families with children. The federal minimum is CHF 215 per month per child (child allowance, up to age 16) and CHF 268 per month (education allowance, 16–25). Some cantons pay more. Allowances are paid through the employer's FAK — a domestic worker with children claims them through their primary employer.
Flat monthly wage
Instead of hourly pay, a domestic worker can be employed on a flat monthly wage — receiving the same amount each month regardless of whether the month has 4 or 5 weeks. Advantages: predictable costs, easy to add a 13th salary. In a flat monthly wage, holiday pay is already included and not shown separately — holidays are taken as time off.
Gratuity (Gratifikation)
A gratuity (Gratifikation) is a voluntary special payment by the employer (OR Art. 322d), typically as a Christmas or year-end bonus. The employer in principle decides whether to pay and how much — unlike the 13th-month salary, which is firmly owed once agreed. However, if the gratuity is paid three years in a row without a voluntariness reservation, a future entitlement arises. When paid in money it is part of the determining wage and therefore AHV-liable — it belongs on the payslip.
Holiday supplement
The holiday supplement is a percentage uplift on the hourly wage that compensates for the holiday entitlement. With 4 weeks' holiday it is 8.33 %; with 5 weeks, 10.64 %. The NAV Household Services prescribes at least 4 weeks of holiday (5 weeks for employees under 20 or over 50).
Hourly wage
With hourly pay, each hour worked is paid individually. Advantage: flexibility for irregular shifts. Disadvantage: holiday entitlement, public-holiday pay and the 13th salary are not included in the base wage and must be added as percentage supplements — typically 8.33 % holiday (4 weeks), 3 % public holidays, 8.33 % 13th salary. These supplements must be shown separately on the payslip.
Interim reference
An interim reference is an employment reference issued during an ongoing employment relationship, which a domestic worker can request at any time (e.g. when a supervisor changes or before a job application). Its structure mirrors the final reference but is written in the present tense. The employer is legally required to issue one on request.
IV (Disability Insurance)
IV provides livelihood protection in case of invalidity due to illness or accident. The contribution rate is 1.4 % of the gross wage (0.7 % each from employer and employee). IV contributions are collected together with AHV contributions through the compensation office.
KTG (Daily sickness allowance insurance)
KTG is a voluntary insurance that replaces income when the domestic worker is ill — typically 80 % of the wage for up to 720 or 730 days. Without KTG, the employer must continue paying the wage themselves according to the Bern, Basel or Zurich scale (3 weeks to 6 months depending on years of service). KTG costs around 1.5–3.5 % of the gross wage and is often split 50/50 between employer and employee.
Liability & civil liability
If a domestic worker causes damage (broken vase, damaged furniture, etc.), she is only liable in cases of intent or gross negligence. In cases of slight negligence, the employer's private civil-liability insurance usually covers the damage. Professional liability insurance for domestic workers is possible but not mandatory.
Maternity benefits
New mothers are entitled to 14 weeks of maternity leave at 80 % of their wage (max. CHF 220/day). The benefit is paid through EO. Requirements: 9 months of AHV affiliation before birth and at least 5 months of gainful employment. Properly registered domestic workers are entitled too — undeclared work removes the protection entirely.
Minimum wage
The NAV Household Services sets nationwide minimum wages for domestic workers. In 2025, the rates are around CHF 19.85–20.35/h for unskilled workers and CHF 22.10–24.20/h for skilled workers (with branch certificate or apprenticeship). Several cantons (Geneva, Neuchâtel, Ticino, Jura, Basel-Stadt) also impose a cantonal minimum wage — Geneva is the highest, at around CHF 24.48/h. Minimum wages are adjusted annually for inflation.
Net / Gross salary
The gross wage is the agreed wage before deductions. The net wage is what the domestic worker actually receives — gross wage minus employee shares of AHV, IV, EO, ALV, NBU and, where applicable, withholding tax. Common mistake: many households agree on a net wage but forget the employer contributions — actual costs run about 15–18 % above the net wage.
Notice period
The notice period depends on years of service and contract type. CO standard: 7 days during probation, 1 month in year 1, 2 months in years 2–9, 3 months from year 10. The NAV Household Services may provide shorter periods — often 2 weeks for hourly pay. Notice must be given in writing and effective at month-end unless shorter periods have been agreed.
Occupational (BU) & non-occupational (NBU) accidents
Under UVG, accidents are split into occupational (during work, including the commute) and non-occupational (leisure). BU coverage is always mandatory and paid by the employer. NBU is mandatory only from 8 weekly working hours and is paid by the employee. Below 8 hours per week, the domestic worker is covered only at the workplace — private accidents are otherwise uncovered.
Paternity leave
Since 2021, fathers have been entitled to 2 weeks of paid paternity leave to be taken within 6 months of the birth. Benefits are paid through EO at 80 % of the wage (max. CHF 220/day). Properly registered male domestic workers also qualify — provided they were AHV-insured for 9 months before the birth and gainfully employed for at least 5 months.
Payslip
The payslip records the gross wage, all deductions (AHV, IV, EO, ALV, UVG, withholding tax if applicable) and the resulting net wage. Employers are legally required to issue a payslip every month. Clino generates them automatically as PDFs.
Probation period
By default, probation lasts 1 month (under the CO), but it can be extended up to 3 months or dropped entirely. During probation a shortened notice period of 7 days applies. Important: probation must be agreed in writing — otherwise the first month counts automatically as statutory probation.
Public holidays
Switzerland has only one nationwide public holiday (1 August). The remaining holidays are set by each canton — usually 8 to 10 per year. With hourly pay, the public-holiday allowance is not included automatically and should be added as a percentage supplement (typically 3 %). With monthly pay, public holidays are already covered.
Salary certificate (Lohnausweis)
The Lohnausweis (salary certificate) is the annual statement of wages paid, used for the domestic worker's tax return. Employers must hand a Lohnausweis (Form 11) to the worker and the tax office by the end of February. Under the simplified procedure, a confirmation from the compensation office replaces the Lohnausweis — withholding tax is then settled at a flat rate.
Simplified procedure (vereinfachtes Verfahren)
The simplified procedure lets private households account for wages up to CHF 22,680 per year and worker on a flat-rate basis. Instead of individual social-insurance declarations, you pay a flat contribution of around 12.5 % (AHV/IV/EO/ALV + withholding tax flat 5 %). Pro: minimal admin. Con: the worker is only flat-rate taxed at source and has no BVG (pension) coverage.
Social insurance
Social insurance in Switzerland comprises AHV, IV, EO, ALV, UVG (accident insurance), BVG (pension fund) and KTG (sickness insurance). For private households as employers, AHV/IV/EO, ALV, UVG and FAK are mandatory. The total cost for the employer is around 12–15 % on top of the gross wage.
Suva
Suva is Switzerland's largest mandatory accident insurer. It covers employees in certain sectors (construction, industry, etc.) — but private households and domestic workers are not subject to Suva. For domestic workers, the private household takes out UVG cover with a private insurer (e.g. AXA, Zurich, Baloise, Helvetia).
Undeclared work
Undeclared work means carrying out gainful employment without paying the legally required social insurance contributions and taxes. An estimated 100,000 domestic workers in Switzerland work undeclared. The risks are substantial: fines up to CHF 10,000, retroactive payment of all social contributions plus default interest, and no insurance coverage in case of accident.
UVG (Accident Insurance)
UVG (accident insurance under UVG) is mandatory for all employees. For domestic workers with less than 8 weekly hours, UVG covers only occupational accidents. From 8 weekly hours, non-occupational accidents are also covered. The BU premium is paid by the employer, the NBU premium by the employee. Typical rates: BU about 0.5–1.5 %, NBU about 1.0–2.0 % of the gross wage.
VAVplus (Simplified Procedure plus)
VAVplus is a cantonal offering that builds on the federal simplified procedure by also integrating accident insurance (UVG). Not all cantons offer VAVplus, and even where it is offered it requires an explicit opt-in — it never applies automatically. Where it is available, it greatly simplifies administration, since AHV, ALV, UVG and withholding tax are settled through a single statement.
Withholding tax (Quellensteuer)
Withholding tax (Quellensteuer) is deducted directly from the wage. It applies to foreign employees who do not hold a Permit C. The rate varies by canton, marital status and income. As the employer, you are required to withhold the tax and remit it to the cantonal tax office.
Work permit (B, C, G, L)
Foreign domestic workers need a specific permit depending on their origin and status. Permit B: residence with gainful employment (5 years, EU/EFTA). Permit C: settlement permit (unlimited, usually after 5–10 years of B). Permit G: cross-border worker. Permit L: short-stay up to 12 months. EU/EFTA citizens benefit from free movement; third-country nationals are subject to quotas.
Working hours & overtime
Under the NAV Household Services, the maximum weekly working time for domestic workers is 45 to 50 hours, depending on the canton. Overtime must be paid at the normal rate or compensated by time off. Beyond 60 hours of extra work per year, a 25 % supplement is due unless otherwise agreed in writing. Breaks, rest periods and the weekly rest day are also regulated.
Social security contributions at a glance
Key contribution rates for private households as employers (as of 2026).
| Insurance | Employer | Employee | Total |
|---|---|---|---|
| AHV / IV / EO | 5,3 % | 5,3 % | 10,6 % |
| ALV | 1,1 % | 1,1 % | 2,2 % |
| UVG Berufsunfall (BU) | ca. 0,5–1,5 % | — | ca. 0,5–1,5 % |
| UVG Nichtberufsunfall (NBU) | — | ca. 1,0–2,0 % | ca. 1,0–2,0 % |
| FAK (kantonal) | 1,0–3,0 % | — | 1,0–3,0 % |
| BVG (ab CHF 22 680/Jahr) | 50 % | 50 % | age-dependent |
Exact rates vary by canton and insurer. Use our salary calculator for an exact calculation.
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Disclaimer: The information on this page is for general guidance only and does not replace professional legal or tax advice. Contribution rates and thresholds may change annually. The current publications of the AHV information centre and cantonal compensation offices are always authoritative.
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