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Absences and daily allowances on the payslip: the 2026 guide

Sickness, accident, maternity, service… paying an absence comes down to two lines: the salary the employer keeps paying, and the insurer's daily allowances. They follow neither the same contributions nor the same withholding tax. Here are the 2026 rules.

Bill Alps 15 min read
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When an employee is absent, their pay comes from two sources — and that distinction drives the entire payslip, from contributions to tax. This guide sets out, reason by reason, who pays, what is subject to social contributions and withholding tax, and the 2026 caps. It complements our FAQ on Swiss salaries and social charges.

Two sources of pay during an absence

On the payslip, you must always separate two lines, because they do not follow the same rules:

The two sources of pay

SourceNatureWho pays
Salary maintenance (art. 324a / 324b CO)SalaryThe employer
Daily allowances (IJ)Insurance benefitThe insurer (LAA accident, sickness IJ, federal APG…)

Absence reasons: who pays and how much

Each absence reason falls under a different legal basis or insurance, with its own rates and caps. Here is the 2026 reference table:

Absence reasons and coverage (2026)

ReasonLegal basis / insuranceWho covers itRate / 2026 cap
SicknessSalary maintenance art. 324a CO; in practice collective sickness IJ insurance (APGM)Employer during the waiting period, then insurer324a: 100 %; APGM: ~80 % up to 720/730 days
AccidentLAA (mandatory)Day of accident + 2 waiting days: employer. Then: LAA insurer80 % from day 3; insured earnings max CHF 148'200/yr = CHF 406/dayallowance max ≈ CHF 324.80/day
MaternityFederal APGInsurer (compensation fund)80 %, max CHF 220/day, 14 weeks (98 days)
Paternity / other parentFederal APGInsurer80 %, max CHF 220/day, 2 weeks (14 allowances) within 6 months
AdoptionFederal APG (since 2023)Insurer80 %, max CHF 220/day, 2 weeks for a child < 4 years
Seriously ill child (care leave)Federal APG (art. 329i CO)Insurer80 %, max CHF 220/day, 14 weeks over 18 months
Military / civil / civil-protection serviceFederal APGInsurer80 % of average income; base allowance min ~69 / max CHF 220/day + supplements
Short leave for carers / sick childArt. 329h CO / art. 36 LTrEmployer (100 %)max 3 days per case; carers: max 10 days/year

Sickness: salary maintenance (art. 324a CO)

The employer owes at least 3 weeks of salary at 100 % in the first year of service, then an increasing duration under the applicable cantonal scale:

  • Bern scale: most cantons (including Fribourg, Vaud, Geneva…)
  • Zurich scale: ZH, SH, TG, GR, ZG
  • Basel scale: BS, BL

The duration counts per year of service, not per calendar year. In practice, a collective sickness IJ policy often replaces this obligation (art. 324a para. 4 CO) if it is at least equivalent (≥ 80 % of salary, ≥ 720/730 days, employer contribution ≥ 50 % of premiums). During the policy's waiting period (0 to 60+ days), the employer remains liable under art. 324a CO.

Accident: the waiting days

The first three days — including the day of the accident — are borne by the employer (min. 80 %, art. 16 LAA / 324b CO). From day 3, the LAA insurer pays 80 % of insured earnings, capped at CHF 406/day (CHF 148'200/year), i.e. a maximum allowance of about CHF 324.80/day.

Social contributions: what is subject

The most counter-intuitive point of the whole absence payroll: only sickness and accident daily allowances escape contributions. APG allowances and the other contributory replacement incomes (AI daily allowance, military insurance, unemployment) are subject to them.

Liability to AVS/AI/APG/AC contributions (2026)

BenefitSubject to AVS/AI/APG/AC?Note
Salary maintained by the employer (324a, top-up to 100 %)✅ YesOrdinary determining salary
Accident waiting days (day + 2 days, art. 16 LAA / 324b CO)✅ YesPaid by the employer before LAA steps intreated as salary
Short paid leave (art. 329h CO, art. 36 LTr)✅ YesSalary maintained at 100 % by the employer
Sickness daily allowance (APGM / IJM)❌ NoInsurance benefit — no deduction
Accident daily allowance (LAA)❌ NoSame (from day 3)
APG allowances (maternity, paternity, adoption, care, service)✅ YesSpecial case: APG is subject to AVS/AI/APG and AC
AI daily allowance (disability insurance)✅ YesContributory replacement income, recorded in the individual account
Military insurance daily allowance (LAM)✅ YesDistinct from service APG
Unemployment benefits (LACI)✅ YesAVS/AI/APG levied; no AC contribution on the allowances themselves
Short-time work / bad weather✅ YesContributions due on 100 % of normal hours
  • Employer top-up: if the employer raises the 80 % allowance to 100 %, the extra part remains salarysubject to contributions.
  • LAA premium: no LAA premium is levied on the allowances themselves.
  • Family allowances: kept for the current month + the following 3 months in the event of full incapacity, and during statutory leave (maternity, other parent, adoption, care).

Withholding tax: the reverse rule

For withholding tax (IS), the logic reverses: daily allowances are indeed taxable. Sickness, accident, AI, unemployment and military-insurance allowances count at 100 % as income taxable at source.

  • Who levies it: if the allowance passes through the employer, the employer levies withholding tax at the usual scale; if the insurer pays directly, the insurer levies it.
  • Maintained salary, top-up, short leave: subject to withholding tax as usual.
  • APG allowances: subject to withholding tax, levied on the gross amount (before AVS/AI/APG/AC deduction).
  • Determining the rate: on a reduced salary (e.g. 80 %), some cantons compute the rate on a theoretical 100 % activity rate, then apply it to the amount actually paid.
  • Salary certificate: loss-of-earnings allowances normally appear under box 7; if entered under box 1, state their nature and duration under box 15.

For the scale itself, see our 2026 withholding-tax scale.

Insured salary and calculation base

Insured base and 2026 caps

InsuranceInsured base2026 cap
LAA (accident)AVS-liable salaryInsured earnings max CHF 148'200/yr = CHF 406/dayallowance max ≈ CHF 324.80/day
APG (maternity, paternity, adoption, care, service)Average income before the event80 %, max CHF 220/day (cap reached from ~CHF 8'250/month)
Sickness daily allowance (APGM)Defined by the policy (often 80 % of AVS salary)As per contract
LPPCoordinated salary, maintained via premium waiverAs per institution rules

Payroll calculation memo in 7 steps

Three worked examples

To ground these rules, here are three common situations with different salaries. They show how the reason and the duration change who pays, at what rate, and what is subject to contributions. The withholding-tax amounts are indicative, since the rate depends on the canton, marital status and tax scale.

Case 1: pregnancy then maternity (CHF 9'000/month)

An employee earns 9'000 CHF a month. In her 7th month, her doctor certifies a pregnancy-related incapacity for work. This is not yet maternity leave: as long as the child is not born, the absence counts as sickness (art. 324a CO), with salary maintenance or daily allowances at 80 %, about 7'200 CHF a month. Maternity APG only starts at the birth.

Case 1, maternity breakdown

StepDetailAmount
Before the birth (from the 7th month)Pregnancy-related incapacity, sickness regime, allowance at 80 %≈ 7'200 CHF/month gross
Maternity leave (98 days)APG at 80 % of income (300 CHF/day), capped at 220 CHF/day220 CHF/day
Gross APG total220 CHF/day × 98 days21'560 CHF
Contributions AVS/AI/APG/AC (6.4 %)APG is subject to them− 1'380 CHF
Withholding tax (indicative, ~10 %)Levied on the gross− 2'156 CHF
Net APG in pocket (approx.)Over 14 weeks≈ 18'024 CHF

Case 2: leg broken skiing, 8 months off (CHF 7'000/month)

An employee on 7'000 CHF a month breaks a leg skiing, a non-occupational accident covered by LAA. The first two days (the accident day and the next) are borne by the employer, at 80 % of salary. From the 3rd day, the LAA insurer pays 80 % of the insured earnings, i.e. 184 CHF a day, well below the 324.80 CHF ceiling.

Case 2, accident breakdown over 8 months

StepDetailAmount
Waiting days (day + 2 days)Employer, 80 % of the daily salary≈ 187 CHF/day (subject)
LAA allowance from day 380 % of insured earnings (230 CHF/day)184 CHF/day
Total allowance over ~8 months (243 days)Paid by the LAA insurer≈ 44'700 CHF gross
Contributions AVS/AI/APG/ACAccident allowance not subject0 CHF
Withholding tax (indicative, ~10 %)Allowance taxable at 100 %− 4'470 CHF
LPPContributions due ~90 days, then premium waiverper regulations
Net LAA in pocket (approx.)Over 8 months≈ 40'230 CHF

Case 3: one week of sickness (CHF 5'500/month)

An employee on 5'500 CHF a month is off sick for five working days. The absence is far shorter than the waiting period of the sickness daily-allowance policy, so no allowance comes into play. The employer maintains 100 % of salary (art. 324a CO), treated exactly like normal pay.

Case 3, one week of sickness

ItemTreatment
Duration5 working days
SourceSalary maintenance by the employer (art. 324a CO)
Rate100 % of salary
Insurance allowanceNone, absence under the waiting period
ContributionsNormal salary, fully subject to AVS/AI/APG/AC and LPP
Withholding taxLevied normally
Impact on the payslipNo change in amount