The Swiss
Terminology Codex.

The 13th salary payment, usually paid in December.

A special social security status for employees living in Switzerland but working for a foreign employer who has NO Swiss legal entity.

State insurance that pays ~70-80% of your salary for up to 2 years if you lose your job.

The legal status of being employed.

A mandatory written reference letter from your employer upon leaving. By law, it must be "benevolent" yet "truthful".

The total agreed salary BEFORE any deductions. It includes the 13th Month Salary if applicable.

For hourly workers, holiday pay (8.33% for 4 weeks, 10.64% for 5 weeks) is paid on top of the hourly wage instead of taking paid days off.

A contract between Unions and Employer Associations that sets minimum wages, holidays, and rules for a whole industry.

A person who lives in an EU/EFTA border zone (e.g. Germany, France, Italy) but works in Switzerland and returns home weekly.

The official annual summary document issued by your employer detailing your gross salary, net salary, and all deductions/perks.

Your right to be paid while sick. In the first year, the law (Basel Scale) only guarantees 3 weeks of pay!

The lowest legal salary. Switzerland has NO federal minimum wage.

Standard paid maternity leave (14 weeks at 80% salary).

The amount that actually hits your bank account after Social Security (AHV/IV/EO), Unemployment (ALV), Pension (BVG), and Accident Insurance (NBU) are deducted.

The initial trial period of a new job, usually 3 months (max 3 months by law). Notice period is only 7 days.

The mandatory deductions from your salary: AHV (Old Age), IV (Disability), and EO (Loss of Earnings/Maternity). Total ~10.6% split 50/50 between you and employer.

Distinction between "Overhours" (Hours above contract but below legal max) and "Overtime" (Hours above legal max of 45/50h).

Paid paternity leave (2 weeks at 80% salary).

The Swiss retirement pension system consisting of State (1st Pillar - AHV), Employer (2nd Pillar - BVG), and Private (3rd Pillar - 3a/3b) provisions.

The state pension scheme (Social Security) mandatory for all residents. It provides a basic subsistence level of income in retirement.

The famous Swiss law protecting client privacy. HOWEVER, for foreign residents, it is effectively dead due to Automatic Exchange of Information (AEOI).

A 3-5 digit code identifying the specific bank (e.g. UBS, CS, ZKB). Included within the IBAN (positions 5-9).

Legacy payment slips (Red/Orange) with a long reference number. OFFICIALLY DEAD since Oct 2022.

A temporary blockade account to park your 2nd Pillar (Pension) assets when you are "between jobs", taking a sabbatical, or leaving Switzerland permanently.

The cash value of your pension when you leave a job.

Fee charged when you use your Swiss card abroad or buy something online in EUR/USD.

The unique address of your bank account. Swiss IBANs always start with "CH" followed by 19 digits.

State insurance providing support/pension in case of long-term disability.

Taking your pension as cash instead of a monthly annuity.

Tax on profit made from selling assets (stocks, crypto, art). In Switzerland, private capital gains on movable assets are TAX-FREE.

Monthly state payment to parents to help with child costs.

Monthly or annual administrative fee charged by traditional banks just for having an account.

A historical anomaly (2015-2022) where banks charged you fees for holding cash. Currently over (positive interest is back!).

The mandatory occupational pension fund, funded by both employer and employee contributions. It claims to replace ~60% of your final salary when combined with AHV.

A restricted private pension plan that offers significant tax advantages. It is voluntary but highly recommended.

Flexible savings or insurance policies that do NOT offer the same direct tax deductions as Pillar 3a, but have no withdrawal limits.

A large pooled pension fund for many small companies.

Professional management of your assets. In Switzerland, this is a massive industry ("Private Banking") typically for assets >CHF 1 Million.

Monthly down-payment for heating/water costs.

A provisional monthly payment made towards estimated variable costs (like heating or water). It is NOT the final price.

The official Swiss government record of debt collection proceedings. It acts as a mandatory "Certificate of Solvency" for renting an apartment or obtaining credit, fulfilling the same function as a credit check.

The public register where all land ownership is recorded.

Tax paid when real estate changes owners.

The powerful lobby/union representing property owners and landlords in Switzerland.

The set of rules governing life in your building. It covers noise (Ruhezeiten), usage of shared spaces, pet policies, and laundry schedules.

The annual reconciliation of your "Akonto" payments vs actual energy usage.

The legally or contractually defined period between resigning from a lease and the actual end date. For Swiss apartments, this is typically 3 months.

Fee paid to a relocation agent or finder.

The association protecting tenant rights. For a small annual fee (~CHF 90), they provide legal advice and insurance.

A security deposit required by Swiss landlords, legally capped at 3 months' gross rent. It serves as collateral for unpaid rent or damages beyond normal wear and tear.

The legal lease agreement. Usually open-ended (unbefristet) with a 3-month notice period.

The technical banking term for the specific account where your Mietkaution determines. It is blocked for the duration of the lease.

Costs for heating, hot water, sewage, and building maintenance paid on top of your "Net Rent" (Nettomiete) to calculate "Gross Rent" (Bruttomiete).

Ownership of a specific apartment within a building.

The document signed during apartment handover (move-in and move-out) describing the exact condition of every room.

The schedule assigning specific time slots for using the shared laundry room (Waschküche) in an apartment building.

Non-profit housing offering cheaper rents but requiring active participation.

The physical credit-card sized document (formerly paper booklets) that acts as proof of your Swiss residency permit (L, B, C, or G).

The physical plastic card representing your residence permit.

The standard renewable residency permit (1 year for Non-EU, 5 years for EU).

Permanent Residency. Almost equal rights to citizens (except voting and military). Unlimited validity.

Residency permit for contracts <12 months. Valid for the duration of the contract.

The official Swiss state-run system for collecting debts.

Holding two nationalities simultaneously. Switzerland fully allows this without restrictions.

The local commune where you live and pay taxes.

The specific department within the Gemeinde that manages the population register. The "Front Desk" of Switzerland.

Official Swiss language test (A1-C1) required for permits and citizenship.

The lowest but most personal level of government (Village/City). There are ~2,130 of them. This is where you register, vote, and pay taxes.

The primary citizenship document for Swiss citizens. It stays deposited at the municipality where you strictly live.

The authority that actually decides on your permit application.

When the Debt Collection Office (Betreibungsamt) forces the bank to seize money from your account to pay unpaid debts.

Permit for contracts less than one year.

Legal obligation to register your residence with the authorities.

The legal process of becoming Swiss. Regular naturalization generally requires 10 years of residency (C Permit).

Permanent residence permit granting nearly equal rights to citizens (except voting).

Official office for certifying signatures and real estate deals.

Insurance that pays for lawyers in disputes (Employment, Housing, Traffic).

A government document listing valid criminal convictions. Clean record is "Privatauszug".

Entry permission for non-Schengen nationals.

The government office responsible for recording births, marriages, deaths, and name changes.

A mandatory annual road tax of CHF 40 required to drive on Swiss motorways (green signs).

Compostable garden and food waste.

Regional waste disposal centers for items you cannot put in normal trash: Stylrofoam, Oil, Metal, Electronics, Hazardous waste.

Official, highly-priced garbage bags required for general waste disposal. The price of the bag (e.g. CHF 2.00 for 35L) covers the trash tax.

The modern Swiss payment slip with a QR code, which replaced the old orange/red slips in 2022.

Tax levied by the Swiss Confederation (Bern). It is unrelated to where you live (Uniform rate).

Tax levied by your specific village/city. It is usually a % multiplier of the Cantonal Tax.

Tax levied by the Canton (State). Rates vary wildly between Cantons (e.g. Zug vs Jura).

Tax levied by recognized state churches (Roman Catholic, Protestant Reformed, Christian Catholic) on their members to fund community services.

Tax deducted directly from the monthly salary of foreign workers (B and L permit holders) who do not have a C Permit or a Swiss spouse.

The mandatory annual household fee (CHF 335) for public broadcasting services (SRF/RTS), collected by the company "Serafe".

The annual tax return form you must file (if C-Permit or >120k income).

A direct reduction of taxes or refund, most commonly from "Verrechnungssteuer" (Withholding on Dividends).

An annual tax on your total world-wide net assets (cash, stocks, cars, property, gold, crypto, expensive jewelry).

A 35% federal tax withheld on Swiss bank interest (>CHF 200) and dividends. It is designed to prevent tax evasion.

System receiving invoices directly into your online banking.

Switzerland's dominant mobile payment app.

Cost to send money domestically or internationally.

The Franchise is the fixed annual amount you must pay towards your medical costs before your health insurance begins to contribute. It ranges from CHF 300 to CHF 2,500 for adults. Choosing a higher franchise lowers your monthly premium but increases your financial risk if you get sick.

Covers damage to your movable items (furniture, clothes, electronics) due to fire, water, theft, or glass breakage. It is based on the "replacement value" of your goods. While not legally mandatory in all cantons, it is highly recommended.

State insurance typically deducted from payroll (0.7%) that supports people who cannot work due to health reasons.

The Federal Law on Health Insurance that mandates basic coverage for everyone living in Switzerland.

Covers damages you cause to third parties (people or property). It is practically mandatory for renting an apartment in Switzerland, as landlords require proof of this coverage to sign a lease. It covers everything from scratching a parquet floor to injuring someone while skiing.

Non-profit air rescue service. Membership covers rescue costs not paid by insurance.

Life insurance products wrapped as savings.

The Selbstbehalt is the co-payment consisting of 10% of medical costs that you pay *after* your Franchise has been exhausted. This is capped at CHF 700 per year for adults and CHF 350 for children. Once you hit this cap, the insurance pays 100% of covered costs.

Daily fee (CHF 15) for hospital stays.

Insurance that replaces your salary if you are unable to work due to illness (e.g., burnout, long covid). Employers usually provide this for 720 days (80% salary). If you are self-employed or a housewife/househusband, you have ZERO coverage unless you buy it privately.

Coverage for medical costs arising from accidents. If you work more than 8 hours/week, your employer covers this (NBU). If not, you must add it to your private health insurance (LAMal). Employer coverage is generally superior as it has no deductible.

Mandatory coverage for accidents involved in free time (Skiing, Car Crash). Deducted from salary.

Optional car insurance that covers damage to your OWN car, even if the accident was your fault. It includes collision damages caused by you. It is usually mandatory for leased vehicles to protect the leasing company's asset.

The Federal Law on Insurance Contracts (VVG/LCA) governs optional supplementary insurance (Private, Semi-Private, Alternative Medicine, Dental). Unlike Basic (KVG), insurers **CAN** reject you based on a health questionnaire.

All-inclusive public transport pass for all of Switzerland.

SBB card granting 50% discount on most public transport.

Insurance model where you must visit your chosen General Practitioner (Hausarzt) first for any issue.

A cheaper insurance model where you must always go to a specific "HMO Center" (Group Practice) first.

Residential care for the elderly or severely disabled.

Cantonal subsidy to help low-income residents pay their health insurance premiums.

Mobile registered nurses who visit patients at home to provide medical care and assistance.

The cheapest insurance model. You MUST call a hotline or use an app before going to any doctor.

How your doctor bills you. Tiers Payant = Bill goes to Insurer (you pay nothing upfront). Tiers Garant = Bill goes to YOU (you pay, then claim back).

Dental care. In Switzerland, this is 100% PRIVATE. Basic insurance pays NOTHING (unless it is a serious jaw accident/disease).