Hire employees and contractors in Switzerland

Remote’s guide to employing in Switzerland.

  • Capital city

    Bern

  • Currency

    Swiss franc
    (Fr, CHF)

  • Population size

    8,693,242

  • Languages spoken

    German (Swiss-German), Romansh, French, Italian

Facts & Stats

Known for its high quality of life, beautiful nature, and highly educated population, Switzerland is home to talented workers in a variety of industries. As a country with one of the highest costs of living in the world, it’s also a place where salaries tend to match. People in Switzerland often speak multiple languages, so communication is rarely difficult. Come to Switzerland to find your next employee, then stay for the beautiful scenery (and the chocolate).

  • Capital city

    Bern

  • Currency

    Swiss franc
    (Fr, CHF)

  • Languages spoken

    German (Swiss-German), Romansh, French, Italian

  • Population size

    8,693,242

  • Ease of doing business

    Very easy

  • Cost of living index

    $$$$ (2 of 139 nations)

  • Payroll frequency

    Monthly

  • VAT - standard rate

    7.7%

  • GDP - real growth rate

    0.9%

Grow your team in Switzerland with Remote

To employ workers in Switzerland, an employer must use a legal entity in the country to manage payroll, tax, benefits, and compliance through in-country resources. While Switzerland remains an easy country for expansion, businesses must still comply with a variety of local regulations.

Through Remote's global employment and global payroll solutions, we can employ your team members in Switzerland on your behalf through our local legal entity. We take care of payroll, tax, benefits, and compliance, so you can focus on growing your business.

Risks
of misclassification

Switzerland, like many other countries, treats self-employed contractors and full-time employees differently. Misclassification of contractors in Switzerland may lead to fines and penalties for the offending company.

Employing in Switzerland

Swiss employment law provides strong protections for workers. In addition, salaries in Switzerland are some of the highest in the world, so companies must be prepared to pay a premium for top talent.

Non-EU or EFTA citizens must acquire work permits to work in Switzerland. The Swiss government has strict standards about who qualifies for a work permit, with some skills weighted more heavily than others.

To employ workers or contractors in Switzerland, contact Remote to learn more about your options.

Public holidays

Date
Holiday Name
Extra information
Saturday, January 1, 2022New Year's DayPublic Holiday
Sunday, January 2, 2022Saint Berchtold's DayCanton: AG, BE, FR, GL, JU, LU, OW, SH, TG & VD
Thursday, January 6, 2022EpiphanyCanton: GR, LU, SZ, TI & UR
Tuesday, March 1, 2022Republic DayCanton: NE
Saturday, March 19, 2022St Joseph's DayCanton: GR, LU, NW, SZ, TI, UR & VS
Thursday, April 7, 2022Näfelser FahrtCanton: GL
Friday, April 15, 2022Good FridayNational except TI & VS
Monday, April 18, 2022Easter MondayPublic except NE, SO, VS & ZG
Sunday, May 1, 2022Labour DayCanton: BL, BS, JU, LU, NE, SH, SO, TG, TI & ZH
Thursday, May 26, 2022Ascension DayPublic
Monday, June 6, 2022Whit MondayNational except NE, SO, VS & ZG
Thursday, June 16, 2022Corpus ChristiCanton: National except AR, BL, BS, BE, GE, GL, NE, SH, SG, TG, VD & ZH
Thursday, June 23, 2022Independence of JuraCanton: JU
Wednesday, June 29, 2022St Peter and St PaulCanton: GR & TI
Monday, August 1, 2022Swiss National DayPublic
Monday, August 15, 2022Assumption DayCanton: AG, AI, FR, JU, LU, NW, OW, SO, SZ, TI, UR, VS & ZG
Thursday, September 8, 2022Jeûne genevoisCanton: GE
Monday, September 19, 2022Day after the Federal FastCanton: VD
Thursday, September 22, 2022St MauritiusCanton: AI
Sunday, September 25, 2022Brother Klaus FestivalCanton: OW
Tuesday, November 1, 2022All Saints DayNational except AR, BL, BS, BE, GE, GR, NE, SH, TG, VD & ZH
Thursday, December 8, 2022Immaculate ConceptionCanton: AG, AI, FR, GR, LU, NW, OW, SZ, TI, UR, VS & ZG
Saturday, December 24, 2022Christmas EveCanton: GL
Sunday, December 25, 2022Christmas DayPublic
Monday, December 26, 2022St Stephen's DayNational except GE, JU, NE, SO, VS, VD & ZG
Saturday, December 31, 2022New Year's EveCanton: GL
Saturday, December 31, 2022Restoration DayCanton: GE

Minimum Wage

Switzerland does not have a national minimum wage, although a few cantons set their own laws regarding minimum worker compensation. Collective bargaining agreements within industries often substitute for legislation on a minimum wage for workers, though the Swiss government often revisits the subject.

Payroll Cycle

For customers of Remote, all employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.

Onboarding Time

We can help you get a new employee started in Switzerland fast. The minimum onboarding time we need is often 7 working days.

Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.

For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.

Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.

Competitive benefits package in Switzerland

Beyond providing your employees with all statutory benefits in Switzerland, Remote can help you create a custom benefits package for your Swiss team. A competitive benefits package may include perks such as:

  • Medical insurance plan
  • Dental insurance plan
  • Vision insurance plan
  • Additional paid holidays
  • Flexible work schedule
  • Pension scheme
  • Life insurance
  • Other insurance

Taxes in Switzerland

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Switzerland.

  • Employer

    • 3.5-9% - BVG (pension)

    • 5.125% - AVS (social security)

    • 1.2-3.6% - FAK (Family Compensation Fund)

    • 1.1% - ALV (unemployment) on salary up to CHF 148,200

    • 0.5% - ALV (unemployment) on salary above CHF 148,200

    • Varies - UVG (accident insurance)

    • 0.043% - Maternity insurance

    • 0.07% - Early childhood fund

    • 11.038-19.438% - Total Cost of Employment

  • Employee payroll taxes

    • 5.125% - AVS (social security)

    • 1.1% - ALV (unemployment) on salary up to CHF 148,200

    • 0.5% - ALV (unemployment) on salary above CHF 148,200

    • Varies - UVG (accident insurance)

    • 0.043% - Maternity insurance

    • 0.07% - Early childhood fund

  • Employee income taxes

  • Federal taxes for single filers

    • 0% - CHF 0 to 14,500

    • 0.77% - CHF 14,500 to 31,600

    • 0.88% - CHF 31,600 to 41,400

    • 2.64% - CHF 41,400 to 55,200

    • 2.97% - CHF 55,200 to 72,500

    • 5.94% - CHF 72,500 to 78,100

    • 6.6% - CHF 78,100 to 103,600

    • 8.8% - CHF 103,600 to 134,600

    • 11% - CHF 134,600 to 176,000

    • 13.2% - CHF 176,000 to 755,200

    • 11.5% - CHF 755,200 and above

  • Federal taxes for married couples and single filers with children

    • 0% - CHF 0 to 28,300

    • 1% - CHF 28,300 to 50,900

    • 2% - CHF 50,900 to 58,400

    • 3% - CHF 58,400 to 75,300

    • 4% - CHF 75,300 to 90,300

    • 5% - CHF 90,300 to 103,400

    • 6% - CHF 103,400 to 114,700

    • 7% - CHF 114,700 to 124,200

    • 8% - CHF 124,200 to 131,700

    • 9% - CHF 131,700 to 137,300

    • 10% - CHF 137,300 to 141,200

    • 11% - CHF 141,200 to 143,100

    • 12% - CHF 143,100 to 145,000

    • 13% - CHF 145,000 to 895,900

    • 11.5% - CHF 895,900 and above

Note that the total income tax a Swiss employee income incurs may change based on the relevant canton's individual income tax regulations.

Types of leave

Statutory leave

Employees 20 years old and above receive at least four weeks of paid time off per year. Employees younger than 20 years old are entitled to five weeks. Employees are also entitled to paid time off for public holidays in the canton in which they live.

Pregnancy and maternity leave

Maternity leave in Switzerland lasts 14 weeks, with the employer paying 80% of the employees wages during leave, capped at CHF 196 per day. Employees in the Geneva canton receive 16 weeks. Employees must contribute to AHV (social security) for the nine months preceding childbirth and must be actively employed for five months preceding childbirth to be eligible. Employees who give birth may not return to work for at least eight weeks.

Partner/paternity leave

Switzerland does not have federally mandated paternity or partner leave, nor does the Swiss government require employers to provide shared parental leave. However, paid leave for parents and spouses is becoming increasingly common, and some cantons do have their own requirements. Employers commonly offer one or two days for partner leave.

Sick leave

Employees are entitled to ongoing payments during sick leave, depending on how long they have worked for the company. Typically, employees receive three weeks of sick leave during the first year. Employers commonly have benefits insurance schemes in lieu of sick leave, under which employees can receive 80% of their most recent salary for up to 720 days.

Employment termination

Termination process

On paper, Switzerland does practice at-will employment, in which the employer or employee may end the relationship at any time for any reason. However, most companies are more cautious regarding terminations and do provide fair reasoning for any termination. It is important for employers of workers in Switzerland to maintain accurate documentation of termination processes.

Notice period

While Switzerland has at-will employment, notice periods are common in employment contracts. Notice periods generally range from one to three months depending on seniority, tenure, and industry.

Severance pay

Severance pay is not required in Switzerland unless stated in the employment contract.

Probation periods

Probationary periods in Switzerland usually last from one to three months.

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