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Employee benefit obligations
 12 Months Ended
Dec. 31, 2024
Disclosure of defined benefit plans [abstract]  
Employee benefit obligations
6.2 Employee benefit obligations
On globally maintains different pension plans based on the respective legislation in each country. Current pension arrangements for On employees in Switzerland are made through plans governed by the Swiss Federal Occupational Old Age, Survivors and Disability Pension Act (BVG). These plans are funded by regular employee and employer contributions and are administered by an independent third party. On's estimated contributions for the next reporting period is CHF 4.7 million.
Final benefits are contribution-based with certain minimum guarantees. Due to these minimum guarantees, On’s Swiss plan (excluding the 1e pension plan) is treated as a defined benefit plan for the purpose of these financial statements. The plan is invested in a diversified range of assets in accordance with law, the investment strategy, and the common criteria of an asset and liability management.
All other plans are treated as defined contribution plans. The contributions of those plans are recognized as personnel expenses in the period during which the related services are rendered by employees. Expenses during the year ended December 31, 2024 amounted to CHF 4.5 million (December 31, 2023: CHF 4.1 million).

The result of the Swiss defined benefit plans is summarized in the tables below:


Employee benefit obligations (amount recognized in the consolidated balance sheets)

(CHF in millions)December 31, 2024December 31, 2023
Present value of defined benefit obligation(52.9)(35.3)
Fair value of plan assets44.3 33.1 
Employee benefit obligations(8.6)(2.2)

As of December 31, 2024, the defined benefit obligation has a weighted average duration of 15.7 years (December 31, 2023: 14.7 years). Employee benefit obligations reconcile as follows:

(CHF in millions)20242023
Employee benefit obligations at January 1(2.2)(6.3)
Amounts recognized in income statement(5.3)(3.8)
Amounts recognized in other comprehensive income(1.2)(3.4)
Contributions by the employer0.2 11.3 
Employee benefit obligations at December 31(8.6)(2.2)
Amounts recognized in the consolidated statements of income

(CHF in millions)202420232022
Current service cost(5.3)(3.8)(3.4)
Past service cost— — 0.3 
Employee benefit expenses(5.3)(3.8)(3.1)


Remeasurements recognized in equity (other comprehensive income)

(CHF in millions)202420232022
Actuarial (losses)/gains from
changes in financial assumptions(2.5)(3.6)6.8 
changes in experience adjustments(2.1)0.2 (1.3)
Return on plan assets excluding interest income3.4 — (1.1)
Net actuarial result from defined benefit plans(1.2)(3.4)4.4 

Defined benefit obligation

(CHF in millions)20242023
Present value of defined benefit obligation at January 135.3 23.7 
Current service cost5.3 3.8 
Contributions by the employees4.3 3.1 
Interest expenses0.5 0.5 
Benefits paid2.8 0.8 
Actuarial losses/(gains) from
changes in financial assumptions2.5 3.6 
changes in experience adjustments2.1 (0.2)
Present value of defined benefit obligation at December 3152.9 35.3 
Plan assets

(CHF in millions)20242023
Fair value of plan assets at January 133.1 17.4 
Contributions by the employer0.2 11.3 
Contributions by the employees4.3 3.1 
Interest income0.5 0.5 
Benefits paid2.8 0.8 
Return on plan assets (excluding interest income)3.4 — 
Fair value of plan assets at December 3144.3 33.1 
The plan assets consist of (all with quoted market prices):

12/31/202412/31/2023
Cash and cash equivalents5.9 %0.6 %
Debt instruments21.9 %28.4 %
Equity instruments33.5 %31.5 %
Real estate21.3 %23.0 %
Mortgages3.6 %— %
Alternative assets13.8 %16.5 %
Total100.0 %100.0 %

Principal actuarial assumptions

12/31/202412/31/2023
Discount rate1.0 %1.4 %
Expected rate of salary increase1.0 %1.5 %
Expected rate of pension increase0.0 %0.0 %
Demographic assumptionsBVG 2020 generation tableBVG 2020 generation table

Sensitivity analysis: Impact on defined benefit obligation

(CHF in millions)12/31/202412/31/2023
Discount rate
-0.5%
4.5 2.8 
+0.5%
(3.8)(2.3)
Expected rate of salary increase
-0.5%
(1.2)(0.6)
+0.5%
0.9 0.7 
Life expectancy
-1 year
(0.5)(0.3)
+1 year
0.5 0.3 
Accounting policies
Accounting and reporting of the Swiss defined benefit plans are based on annual actuarial valuations. Defined benefit obligations and service costs are assessed using the projected unit credit method, with the cost of providing pensions charged to the income statement so as to spread the regular cost over the service lives of employees participating in these plans. The pension obligation is measured as the present value of the estimated future outflows using interest rates of government securities, which have terms to maturity approximating the terms of the related liability. Service cost from defined benefit plans are charged to the consolidated statements of income within the selling, general and administrative expenses line item. If the fair value of the plan assets exceeds the present value of the defined benefit obligation, only a net pension asset is recorded, taking account of the asset ceiling. If the present value of the defined benefit obligation exceeds the fair value of the plan assets, only a defined benefit obligation is recorded.

The net interest component is calculated by applying the discount rate to the employee benefit obligations (net defined benefit asset or liability) and is recognized in the income statement in the selling, general and administrative expenses line item within the consolidated statements of income. Actuarial gains and losses, resulting from changes in actuarial assumptions and differences between assumptions and actual experiences, are recognized the equity (other comprehensive income) in the period in which they occur.

Significant judgments and accounting estimates
The carrying amounts of defined benefit pension plans are based on actuarial valuations. These valuations are calculated based on statistical data and assumptions about discount rates, expected rates of return on plan assets, future salary increases, mortality rates and future pension increases. Due to the long-term nature of these plans, such estimates are subject to significant uncertainty.