CHF 55–85 million in social contributions vanish every year
Because Switzerland fails to register its domestic workers, taxpayers will foot billions in supplementary benefits down the road.
An estimated 75,000 domestic workers in Switzerland operate without AHV registration. The consequence: at least CHF 55 million — conservatively up to CHF 85 million — in social insurance contributions are lost every year. Yet the true cost will only materialise decades later, when these women retire and depend on supplementary benefits. An analysis based on FSO, SECO, and Quitt data reveals the scale of this ticking time bomb.
2026 update
- Since 2026 the 13th AHV pension is being paid out. It makes a complete contribution record even more valuable — those missing years now lose even more.
- Contribution gaps are a gender and migration issue: around 9% of foreign women have gaps versus about 1% of Swiss women (FSIO CHSS); migrants account for roughly 70% of gap cases.
- Officially only 108,000 cleaners are recorded (FSO SLFS 2024); conservatively, at least 75,000 additional undeclared workers are assumed — the true number is likely higher.
The validated AHV gap: four scenarios
The calculation is based on an hourly wage of CHF 30, around 75,000 undeclared workers, and the 12.8% rate (AHV/IV/EO plus ALV). Depending on weekly hours (4–6), the following scenarios emerge:
| Scenario | Weekly hours | Contribution scope | AHV gap/year | Confidence |
|---|---|---|---|---|
| A (Recommended) | 4 h/week | AHV/IV/EO + ALV (12.8%) | CHF 55M | Medium-High |
| B | 6 h/week | AHV/IV/EO + ALV (12.8%) | CHF 83M | Medium |
| C | 4 h/week | AHV/IV/EO only (10.6%) | CHF 46M | Medium-High |
| D | 6 h/week | AHV/IV/EO only (10.6%) | CHF 69M | Medium |
Three women, three fates
Behind the millions are real people. Women who get up every morning, clean other people's homes, look after other people's children — and end up with nothing. No pension. No safety net. Nothing.
Maria, 45, from Portugal
12 hrs/week, 3 households, CHF 28/hr
Maria moved to Zurich at 30. Since then she has cleaned three flats a week, always cash in hand, never with a receipt. Her employers are nice people — they give her a Christmas tip and say registering is «too complicated». What Maria does not know: every undeclared year costs her CHF 1,852 in AHV contributions. After 15 years that adds up to CHF 27,780 — gone for good.
When Maria retires at 65, she will be missing 14 contribution years. Her pension: CHF 859 per month. Had she been registered: CHF 1,260. The difference of CHF 401 per month will follow her for the rest of her life.
Maria, 52, from Portugal, cleaned in Zurich for 18 years. Her pension gap: CHF 840 per month — for life.
Anna, 55, Swiss
8 hrs/week, 2 households, CHF 32/hr — one registered, one not
Anna thinks she is doing everything right. One household runs through the simplified procedure; the other pays cash. «It's only four hours,» she says. But those four hours cost her CHF 706 in AHV contributions — every year for 20 years. Total: CHF 14,112.
Anna's case shows: Even partial undeclared work creates a gap. Her average annual income is reported 50% too low. That shifts her AHV pension from CHF 1,420 to CHF 1,360 per month. Over 20 years of retirement: CHF 14,400 to CHF 28,800 less.
Fatima, 35, from Brazil
20 hrs/week, 5–6 households, CHF 25/hr
Fatima came to Switzerland five years ago. She works more than anyone else — 20 hours a week, five to six families. Her annual income: CHF 26,000. Enough for the BVG threshold. Enough for a decent pension. But nobody registers her. None of her employers. And Fatima does not ask — for fear of losing the contracts.
Fatima's case is the most alarming — because she still has time. If she were registered now and contributed for 30 years, she could still build a proper pension. But every further undeclared year widens the gap. Without registration, she will be missing 14 contribution years at retirement. Her AHV pension: CHF 1,004 instead of CHF 1,472.
And it gets worse: at CHF 26,000 annual income, Fatima would be entitled to BVG occupational pension — the second pillar. Instead: nothing. No accident insurance. No unemployment insurance. Nothing.
| Persona | Undeclared years | Pension gap/mo. | Lifetime loss |
|---|---|---|---|
| Maria (PT, 45, 12 hrs/wk) | 15 | CHF 401 | CHF 96,240 |
| Anna (CH, 55, 8 hrs/wk) | 20 (partial) | CHF 60–120 | CHF 14–29K |
| Fatima (BR, 35, 20 hrs/wk) | 5 | CHF 468 | CHF 112,320 |
The supplementary benefits time bomb: every unpaid franc costs CHF 7–15
Supplementary benefits (SB) are tax-funded top-ups for retirees whose AHV pension is not enough to live on. In 2024, 350,900 people in Switzerland received SB — total cost: CHF 5.9 billion per year (+4.1% year on year, FSIO SB statistics 2024). When today's undeclared domestic workers retire, many of them will need SB.
| Scenario | SB recipients | SB per person/mo. | Annual SB cost |
|---|---|---|---|
| Conservative | 30,000 | CHF 1,000 | CHF 360M |
| Mid scenario | 37,500 | CHF 1,200 | CHF 540M |
| High | 45,000 | CHF 1,500 | CHF 810M |
The strongest argument for policy action: Every CHF 1 in AHV contributions not collected today will generate CHF 7–15 in future supplementary benefits. Compliance today is dramatically cheaper than SB tomorrow.
The cumulative pension gap: CHF 5–12 billion
Extrapolated to all currently undeclared domestic workers and their remaining lifetimes, the cumulative pension gap is considerable:
| Scenario | Affected | Loss per person | Total gap |
|---|---|---|---|
| Conservative | 75,000 | CHF 66,720 | CHF 5.0 bn |
| Mid scenario | 75,000 | CHF 110,400 | CHF 8.3 bn |
| High | 75,000 | CHF 160,800 | CHF 12.1 bn |
Adjusted for partially existing contribution years (50% discount): CHF 4–6 billion in lifetime pension gap.
The demographic multiplier
- 97% women — many are secondary earners with low individual AHV entitlements
- 74% foreign nationals — Portuguese (21%), Spanish (8%), Italian (6%), Brazilian (5%); many without income splitting
- Average age 49.7 years — the SB burden will hit in 15–20 years, not 30+
Break-even: how many registered years does it take?
A central question: how many registered working years does a domestic worker need to avoid supplementary benefits? The sobering answer:
| Registered years | Pension share | AHV pension/mo. | SB needed/year |
|---|---|---|---|
| 10 | 22.7% | CHF 278 | CHF 16,760 |
| 20 | 45.5% | CHF 557 | CHF 13,410 |
| 30 | 68.2% | CHF 835 | CHF 10,080 |
| 40 | 90.9% | CHF 1,113 | CHF 6,740 |
| 44 (Full) | 100% | CHF 1,225 | CHF 5,400 |
Sobering finding: Even with a full 44 contribution years at minimum wage, the AHV pension (CHF 1,225/mo. = CHF 14,700/year) falls short of the SB threshold for a single person in Zurich (CHF 20,100/year). This means: AHV alone is never enough — the second (BVG) and third pillars are essential. Undeclared workers miss out on all three pillars.
What a domestic worker needs to avoid SB:
- 35+ registered contribution years
- Annual income above CHF 22,680 (BVG threshold) — i.e. 14+ hrs/week at CHF 32/hr
- Combined AHV + BVG of at least CHF 1,675/mo.
Most part-time cleaners never reach this threshold from cleaning alone. Registration is necessary — but not sufficient. The entire social insurance architecture for part-time low-wage work is structurally inadequate.
Sources
- Quitt Domestic Worker Report 2025 (2025) — 2024 data, 10,641 contracts
- Quitt Domestic Worker Report 2024 (2024) — 2023 data
- FSO SLFS 2024 (2024) — Swiss Labour Force Survey, 108,000 registered cleaners
- FSIO SB statistics (2024) — 350,900 SB recipients, CHF 5.9bn total cost
- FSIO CHSS (2018) — contribution gaps: foreign women 9% vs Swiss women ~1%
- SECO BGSA Report 2023 (2023) — Combating undeclared work
- FSO Satellite Account for Household Production (2020)
- SECO NAV Domestic Work (2026) — Minimum wage CHF 20.35/hr
- Homegate AG Domestic Worker Survey (2024/2025)
- ILO Domestic Workers Dataset (2023)
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About Clino
Clino is a Swiss SaaS platform enabling households to legally employ domestic workers — payroll, contracts, social security, and accident insurance included. CHF 19.90/month. All 26 cantons. Founded 2025 in Zurich. clino.ch
