Facts
This judgment dealt with the question of whether compensation paid by an employer to its employees to cover their health insurance premiums is exempt from the relevant salary for AHV (Old Age and Survivors' Insurance) contributions.
The Compensation Fund of the Canton of Zug had decided that such payments are subject to AHV contribution obligations. The employer, [N. AG], filed a complaint against this. The Administrative Court of the Canton of Zug dismissed the complaint, whereupon [N. AG] filed an administrative court appeal with the Federal Supreme Court.
Considerations
The Federal Supreme Court stated that according to Art. 5 para. 1 and 14 para. 1 AHVG, in principle all income from dependent employment, i.e. the relevant salary, is subject to AHV contributions. However, exceptions are possible if the Federal Council, based on Art. 5 para. 4 AHVG, excludes certain social benefits from being included in the relevant salary.
In the version of Art. 8 lit. b AHVV applicable from 1 January 1997, the Federal Council provides for such an exception for the employer's contributions to the health and accident insurers of its employees, provided that all employees are treated equally. The Federal Supreme Court considered this provision to be lawful, as the Federal Council had thus taken…