According to the law, UI II shall be levied on incomes above CHF 148,200. This ceases once the threshold of 2.5 billion equity in the UI compensation fund is reached. Based on current figures, this should be the case by the end of 2022, which means that the unemployment surcharge will cease 2023.
The Swiss unemployment insurance (UI) consists of the statutory unemployment insurance (i.e. ALV I / UI I) and the solidarity contribution / unemployment surcharge (i.e. ALV II / UI II) and is part of the Pillar I Swiss social security system. These contributions are financed by both employees and employers.
The contributions to UI I amount to 2.2% (employer and employee contributions together) of the relevant annual salary up to the limit of CHF 148,200. For salaries exceeding this amount, an additional 1% (employer and employee contributions together) of surcharge unemployment insurance is due as a solidarity contribution.
Because the UI was heavily in debt at the beginning of the millennium, this surcharge contribution was introduced as part of the UI revision in 2011 to counteract the debt. As a result, the UI received up to CHF 400 million in additional contributions each year. At the time, the law stipulated that the unemployment surcharge would be discontinued if a certain threshold was met.
As the figures now show, the equity capital of the UI compensation fund is expected to exceed the corresponding threshold of CHF 2.5 billion by the end of 2022. By law, the unemployment surcharge (UI II) may be levied only until this threshold is reached. The right to apply the surcharge contribution of 1% on incomes exceeding CHF 148,200 will therefore cease as of 1 January 2023 (Arbeitslosenversicherung: Solidaritätsprozent fällt per 1. Januar 2023 weg (admin.ch)).
The following is an overview of social security contributions from 2023:
|As of 01.01.2023|
|Old-Age Pension (OAS)||8.7% (4.35% each to be borne by employee and employer)|
|Disability Insurance (DI)||1.4% (0.70% each to be borne by employee and employer)|
|Income Compensation (IC)||0.5% (0.25% each each to be borne by employee and employer)|
|Total AHV/IV/EO||10.6% (5.30% each to be borne by employee and employer)|
|Unemployment Insurance (UI I)||2.2% (1.1% each borne by employee and employer for income up to CHF 148,200)|
|Unemployment surcharge (UI II)||*discontinued|
|Maximum contribution Pillar 3a for 2023||CHF 7,056 (private Insurance)|
* If the equity capital is below the threshold again in the year of 2023, the surcharge levy may again be adjusted as of 2024.
Why does this matter?
It is recommended that payroll sytems are updated in a timely manner so as to ensure the correct and compliant processing of salaries from January 2023.