Bonus and gratuity in Switzerland: entitlement, deductions and the tax effect
With bonuses, the fine print decides: depending on how it is worded in the contract, it is owed salary or a voluntary gesture — and anyone who receives it for years without reservation eventually acquires a claim to it. Only one thing is certain: taxes and social contributions always apply.
Published: 17.07.2026 · Updated: 17.07.2026
A bonus is not a bonus
Swiss law does not know the “bonus” as its own concept — it distinguishes:
- Variable salary: the bonus is determinable by objective criteria (formula, target achievement, revenue share). Then it is owed salary — enforceable, pro rata also on departure.
- Gratuity (Art. 322d CO): a special payment at the employer’s discretion. It can be tied to conditions (e.g. an unterminated employment relationship).
The practical twist: a “voluntary” gratuity paid for years without reservation and in constant amount founds a tacit entitlement. Employers protect themselves with a discretionary reservation — and employees best read the contract closely before budgeting with the bonus. The difference from the 13th month salary: the 13th, once agreed, is always owed.
Deductions: no exception for bonuses
Bonus and gratuity alike are AHV-liable salary: AHV/IV/EO (5.3%), ALV (up to the contribution ceiling) and regularly BVG apply as on every other franc; the bonus counts toward the pension fund’s decisive annual salary. What remains net of a payment can be estimated in the salary calculator by adding the bonus to the annual salary.
For withholding tax, the 13th-month pattern repeats, only stronger: in the monthly model, the bonus month lifts the rate of the entire month; in the annual model (FR, GE, TI, VD, VS) it is smoothed. Over the year it evens out — annual income remains decisive, as described in the guide withholding tax or ordinary assessment.
The tax effect of a good year — and how to soften it
A high bonus pushes you up the progression: the last franc of the bonus is taxed at your marginal rate, noticeably above your average rate. Three legal antidotes, all most effective in the bonus year itself:
- Pension-fund buy-in: fully deductible, works precisely against the bonus progression (rules incl. the 3-year blocking period).
- Fill pillar 3a to the maximum: the standard deduction — the saving by canton in the pillar 3a calculator.
- Declare deductions properly: precisely in a high-income year, the complete deductions checklist pays double.
In short
- Check the contract wording: formula = salary, discretion = gratuity.
- Unreserved repetition over years can found an entitlement.
- Deductions and taxes always apply — budget the bonus net, not gross.
- Bonus year = the right year for a pension buy-in and the 3a maximum.
Frequently asked questions
Am I entitled to my bonus?
That depends on its design. If the bonus is objectively determinable (e.g. a fixed formula based on revenue), it counts as variable salary and is owed. A true gratuity (Art. 322d CO) is at the employer's discretion — but paid for years without reservation and in equal amount, it can found a tacit entitlement. A cleanly worded discretionary reservation prevents that; for very high amounts, case law qualifies again.
Are social contributions due on a bonus?
Yes, in full: bonus and gratuity are AHV-liable salary — AHV/IV/EO, ALV (up to the ceiling) and generally BVG apply as on the rest of your pay. A "gross for net" bonus only exists where the employer additionally covers the deductions.
Why is the tax deduction so high in the bonus month?
For source-taxed people, the rate in the monthly model is measured against monthly income — the bonus month slides into a higher tariff band, and that rate applies to the whole month's salary. Annual-model cantons (FR, GE, TI, VD, VS) smooth the effect. Under ordinary assessment only annual income counts anyway.