Pocket money job

Employment in private households is highly regulated. Whether you hire someone for childminder or to help with small household chores: Points such as AHV or accident insurance immediately come into play. As an employer, you are obliged to do this from the first franc of salary. Couldn't it be simpler? Absolutely! The law makes life easier for employers when it comes to so-called ‘pocket money jobs’.

What is a pocket money job?

Young people use pocket money jobs to supplement their income. Babysitting is the prime example: pupils and students earn a few francs by looking after the family's children. According to the law, the following criteria must be met:

• The total salary may not exceed CHF 750 in a calendar year.
• The employee must not be more than 25 years old in the calendar year.
• The employee does not require social insurance contributions to be deducted.

No AHV registration required

Up to the age of 25, annual wages of up to CHF 750 are exempt from AHV contributions. This means that the employee does not have to sign up for the pocket money job with the AHV office and social insurance contributions are also not due. It is important to know that this exemption from contributions is not an allowance. If the annual salary for all remunerated activities exceeds the CHF 750 limit, the entire annual salary is subject to contributions from the first franc of salary.

Accident insurance is automatically included

Pocket money jobs are also exempt from accident insurance. If the employee suffers an accident or an occupational illness, the consequential costs are still covered. In this case, the UVG compensation fund charges the employer a premium. However, it is not necessary to take out an insurance policy in advance, as is usually the case with all private household employment!

Conclusion: A pocket money job is a very uncomplicated form of employment with many advantages. AHV registration and accident insurance are not necessary, which is very attractive for the employer. However, the limit of CHF 750 per calendar year is quickly reached even with irregular assignments. It is worthwhile calculating the expected remuneration precisely and not exceeding it. This is the only way to guarantee that the uncomplicated employment relationship is legal.