In this article
Key points
- Premiums for employee insurance are initially calculated on estimated salaries.
- The final payroll declaration can reveal differences and trigger a costly additional premium invoice.
- Updating payroll totals before 31 December avoids surprises and stabilises cash flow.
- It is also the right time to review BVG/LPP, UVG/LAA and daily sickness allowance cover.
As the year draws to a close, companies can optimise their employee insurance and occupational pension policies.
The final payroll declaration is a key step: it ensures that the premium is calculated correctly. Updating it before 31 December helps keep costs under control, avoid expensive additional invoices and manage the company’s resources better.
What is a payroll declaration?
The annual declaration states the salaries actually paid during the year; it is used to calculate the final insurance premium. An accurate declaration helps you:
- avoid large differences between the estimated and the actual premium;
- protect the company’s budget from unexpected costs;
- optimise financial and insurance management.
Avoid differences between provisional and final premiums
Contracts are concluded with a provisional premium, calculated on estimated salaries. At the end of the year, the final declaration can reveal significant differences, for several reasons:
- The payroll total rises during the year.
- Headcount changes: new hires or departures.
- Work is organised differently: overtime, temporary contracts.
Provisional and final premium
Table 1| Criterion | Provisional premium | Final premium |
|---|---|---|
| Basis of calculation | Estimated salaries | Salaries actually paid |
| Timing | When the contract is concluded | After the final payroll declaration |
| Consequence | Premium paid in advance | Additional invoice if salaries were underestimated |
Updating your policies with actual figures avoids these differences and makes financial planning more stable and predictable.
The benefits for financial management
A better forecast of the final premium lets you plan cash flow more precisely. An additional invoice is an unexpected cost that an SME may struggle to absorb. By adjusting payroll totals at this time of year, the company avoids surprises and manages its resources better.
Improve your employees’ cover
Beyond the savings, updating your policies is an opportunity to significantly improve staff protection. The key areas:
- occupational pension provision (BVG/LPP);
- mandatory and supplementary accident insurance (UVG/LAA);
- daily sickness allowance.
Adequate cover adds value for employees and strengthens their trust in the company.
Lorena Respini, Assidu
Investing in employees’ security and well-being improves retention, attracts new talent and enhances the company’s reputation as an employer.
Review how effective your policies are
The year-end review is also a chance to check whether clauses and cover still match current needs, or whether they should be updated or extended.
Conclusion
Updating payroll declarations and optimising policies before 31 December is a strategic choice that helps you:
- avoid financial surprises
- provide optimal protection for employees
- manage the company’s resources more effectively
Our team analyses your needs and proposes tailored solutions.
Member of Management · Insurance Specialist with Federal Diploma of Higher Education · Social Insurance Specialist with Federal Diploma of Higher Education
