The Federal Act on Tax Reform and AHV Financing comes into force on 01.01.2020. Accordingly, the salary contribution will increase from 8.4% to 8.7%. The AHV/IV/EO contribution rate will therefore increase from 10.25% to 10.55%. As a result of splitting the contributions in half, the employer must increase the employee’s AHV payroll deduction by 0.15%. The new contribution rates at a glance Employer Employee Total AHV new previously 4.35% 4.2% 4.35% 4.2% 8.7% 8.4% IV 0.7% 0.7% 1.4% EO 0.225% 0.225% 0.45% Total AHV/IV/EO new previously 5.275% 5.125% 5.275% 5.125% 10.55% 10.25%