Projected Salary what to expect

Finance, Taxes, Banking, Insurance and Retirement
1
While I'm still negotiating my package I asked my agency to do the rough figure for the model rate being 100CHF an hour, which they did. As figure don't quite add up could anyone confirm if the calculations look fair for a single earner family of two EU passport holder adults based in Zurich:

Compensation ---------------------------------------------------------

- Gross 100CHF per hour * 8 hours * 20 days) + 1/12 = 17,333.(3)

Provisioning ---------------------------------------------------------

- Vacation -1,333.(3)

Pension Fund Contribution I

- Pension Risk Premium 0.7% X 5,078.75 = -35.55

- Pension Savings Amount 7.5% X 5,078.75 = -380.91

Total -416.46

Q: where 5,078 comes from?

National Insurance I ------------------------------------------------

AHV/IV/EO 5.3% X 14,194.60 = -752.31

AHV Admin 0.3030% X 14,194.60 = -43.01

Family Benefits 1.12% X 14,194.60 = -158.98

Unemployment 1 1.1% X 12,350.00 = -135.85

Unemployment 2 0.5% X 1,844.60 = -9.22

Accident Insurance (LAI) 0.0467% X 12,350 = -5.77

Accident Insurance (LIC) 1 0.25% X 12,350 = -30.88

Accident Insurance (LIC) 2 0.399% X 1,844.60 = -7.36

Income replacement Insurance

due to il 1.63% X 14,194.60 = -231.37

Professional education

fund 0.1% X 14,194.60 = -14,19

Total National Insurance I -1,388.94

National Insurance II ------------------------------------------------

AHV/IV/EO 5.3% X 14,194.60 = -752.31

Unemployment 1 1.1% X 12,350 = -135.85

Unemployment 2 0.5% X 1,844.60 = -9.22

Accident Insurance (LAI) 0.81% X 12,350 = -100.04

Total National Insurance II -997.42

Q: is that fair that National Insurance II deducts what looks be the same

taxes and rates as NI I does?

Pension Fund Contribution II -------------------------------------------

Pension Risk Premium 0.7% X 6,078.75 = -35.55

Pension Savings Amount 7.5% X 5,078.75 = -380.91

Total Pension Fun Contribution II -416.46

Q: Why would they include pension contribution twice?

Sourcetax ---------------------------------------------------------------

Tax 11.73% X 14,194 = -1,665.03

Net ---------------------------------------------------------------------

Balance 11,115.7

Q: Couldn't the get total working, could anyone confirm if figures make sense?

Thanks.

2
5,078 is the maximum BVG salary which must be covered under Saule 2 by your employer. It is calculated as 6 * min AHV rente (1195) - 1.75 * min AHV rente (coordination with Saule 1).

This is for a contractor rate? You have to pay both your half and the employer half of everything, so you pay both sides of the pension and insurances.

The total adds up on my calculator, so I am not sure what your last question is.

3
It can get a bit complicated.

From the 100 per hour comes employer deductions and employee deductions. Employer deductions are based on salary with various upper limits but you can't calculate the salary until you've taken out the employer deductions...

Some models the employer contributes as well as the employee and in others the employer contributions are more. The latter model is more tax efficient as it reduces salary but for various insurances and RAV etc it can then mean you're less insured.

4
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5
I can't figure out where the 1/12 comes in here. It seems to me the 100 per hour is the 'turnover' or revenue that is earned by the company to pay for your salary and salary expenses. i.e. the gross turnover figure is only ever hours you work multiplied by the hourly rate.

6
What confuses me is why do they add 1/2 on top of what I earn? I'd though it'd be more logical to rather subtract it - as my gross payment will also be used to building the mandatory vacation fund.

7
1/12 is probably either the provision for 13th month salary or vacation amount that they pay you before deducting again.

The "I" seems to be the individual's deductions for pension/NI whereas the "II" seems to be the employer's. As a contractor you have to pay both.

Totals look fine to me. Maybe if you subtract the employer's deductions from the figures you get from your calculator they will be a closer match?

Of course also have a call with the agent to clarify everything.

8
Maybe somehow your actual hourly rate is more than 100 but they have to reduce it down in order to then give you the 13th month salary, which I don't think they need to offer you in any case but maybe it's a tax thing.

I remember when I first got my salary breakdown and the payroll company couldn't really explain some things. Not that is was wrong but they simply couldn't explain it.