Under the Swiss Federal Act on Old-Age and Survivors' Insurance (known as LAVS), all people exercising gainful employment are required to pay contributions beginning on January 1st of the year following that in which they turn 17 years old.
In a domestic context, all paid activity is subject to contributions, even if the wages in cash or remuneration in kind is less than CHF 2'300.- per year.
Have you hired a cleaner, a nanny for your children or a gardener? As an employer in the Canton of Geneva, you are legally obliged (Art. 12 LAVS; 34d RAVS) to declare your employee’s wages to social security and to take out accident insurance.
Chèque service will facilitate these tasks for you.
Young people are exempt from the obligation to contribute until December 31st of the year in which they turn 25 years old, as long as their wages do not exceed CHF 750.- per calendar year. Nonetheless, they may request a contributions statement.
Beneficiaries of AVS income (people having reached retirement age) who are still working as domestic employees continue to pay AVS, AI and APG contributions, but not those for unemployment insurance. They benefit from a deductible of CHF 1'400.- per month (CHF 16'800.- per year). The AVS/AI/APG contributions are drawn on the part of income that exceeds this deductible.
However, there is no deductible for those people having taken early retirement (from 62 years old for women and 63 years old for men), who must also pay unemployment insurance contributions.
