Income Compensation (APG)

As an employer, you are responsible for the payment of social contributions in respect of all your employees, as from 1st January following their 17th birthday, and in respect of any self-employed persons working for you who have not been declared to a social security institution. The obligation terminates when your employees reach retirement age and cease all gainful employment. For administrative purposes, the AVS/AI/APG contributions are grouped together at an overall rate of 10.60%, of which half (5.30%) is contributed by the employee and half by you. Within this overall rate, AVS is 8.7%, AI is 1.4%, and APG is 0.50%. In addition, there is a contribution to the Compensation Fund’s administrative costs (between 0.02% and 0.175% of the payroll), calculated on the basis of reported annual salaries.

At the time of service (military, civil defence, Red Cross or community service; Youth and Sport instructor courses; young shooter instructor courses), the employee concerned will send you an APG application form on which you will indicate the salary the person received before service.  Once we have received the duly filled-in form, we will provide the APG allowance due, insofar as you will have paid a salary for the duration of the service, and insofar as the allowance does not exceed the salary paid.  If you do not pay the salary during the service, we will pay the allowance directly to your employee.  As a rule, the basic daily allowance is CHF 69, the average allowance is 80% of the last salary, and the maximum allowance is CHF 220. 

In order to pay the contributions you must first register with the CVCI and the Compensation Funds. Once affiliated, your provisional contributions will be calculated on the basis of your annual payroll estimate.  You should inform us of any major changes during the course of the year (+/-25%).  The provisional contributions are payable on a quarterly basis if the payroll is under CHF 200,000 and monthly if it is greater. In the case of late receipt of your statement of account or late payment, a default interest of 5% will be charged. At the end of the year, you will be sent a statement of account which will set real salary payments for the year under consideration against the provisional contributions.  For the difference you will either be invoiced, or a credit note will be deducted from your next contribution payment.  As an employer, you are responsible for the payment of AVS contributions in respect of all your employees, and you are subject to periodic checks.