Â鶹Éç Finance 101
Understanding salary: gross and net made simple
Many abbreviations, little clarity? Here you’ll learn – simply and clearly – what actually lands in your bank account, what a good salary is, and how to negotiate fairly.
FAQ
Gross appears in your contract, net is what reaches your bank account – after social security contributions (AHV/ALV/NBU/BVG) and, if applicable, withholding tax.
AHV: pension for old age and survivors.
ALV: protection in case of unemployment.
NBU: accident insurance for non-work-related accidents.
BVG (pension fund): additional savings for retirement/disability/death.
These are investments in your security, not “money disappearing into nothing”.
Without a C permit (or if you live abroad but earn income in Switzerland), the employer deducts your income tax directly from your salary.
As a rule of thumb: gross minus about 12–16 percent equals your net salary (depending on age, canton and personal situation).
5,000 francs gross equals roughly 4,200 francs net.
Consider the full package: for example a GA travel card, company car, pension fund contributions, extra vacation days or training. This can make a difference of thousands of francs per year.
Check the median salary (not just the average): in 2022 it was around 6,800 francs. Managers earn significantly more, simple operational roles often much less. Regions matter too (e.g. Zurich/Zug vs. Jura).
Use official salary calculators or statistics and industry benchmarks; combine them with your skills, responsibilities and location.
Tip 1: Say “adjustment” instead of “raise”.
Tip 2: Provide proof of your performance (projects, extra responsibilities, measurable results).
Tip 3: Be specific – mention numbers and alternatives (vacation days, GA, training).
In a salary negotiation, 3–10% is realistic. When changing jobs, it can be more – with a strong justification.
“I have taken on new projects and responsibilities. I see myself at a salary adjustment of 7%. Alternatively, an additional vacation day.”
Build an emergency fund (for example 3–6 months of expenses). With savings in the background, you negotiate more confidently and don’t have to accept every offer.
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Disclaimer
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