What is ALV?
ALV is Switzerland’s unemployment insurance scheme, funded through payroll contributions by employers and employees.
Key Features
- Mandatory payroll-based insurance contribution
- Employer and employee contribution split
- Calculated as part of standard salary processing
- Linked to broader social insurance compliance
Practical Payroll Steps
- Configure ALV rates in payroll setup
- Apply deductions correctly to eligible salaries
- Include contributions in periodic reporting
- Reconcile payroll totals against declarations
Tax and Compliance Implications
Errors in ALV treatment can create contribution gaps and retroactive payment risk. Accurate payroll controls reduce correction cycles and penalties.