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Capital City
Bern
Currency
Swiss Franc
(
CHF
)
Timezone
GMT +1
Payroll Frequency
monthly
Tax Year
1 January- 31 December
Employer Tax
8.17% - 23.5%
Languages
German
French
Italian
Capital City
Bern
Currency
Swiss Franc
(
CHF
)
Timezone
GMT +1
Payroll Frequency
monthly
Tax Year
1 January- 31 December
Employer Tax
8.17% - 23.5%
Languages
German
French
Italian
Switzerland boasts a highly talented and skilled workforce. The country consistently ranks at the top for talent, as evidenced by the 2020 IMD World Talent Ranking.
Switzerland operates a 'labour leasing license' system, requiring temporary or third-party employers to hold the necessary labour license. This license mandates a direct contract between the employer and the end-user customer managing the worker.
Switzerland's high English proficiency levels enhance its appeal for international recruitment, facilitating effective communication in a global business environment.
Switzerland's reputation for a high-quality education system contributes to the availability of skilled workers. This, coupled with effective talent management, makes it an attractive location for employers.
Businesses can only operate smoothly in Switzerland if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Switzerland below, to avoid any compliance issues.
Switzerland upholds a strong legal framework for employment, governed by its civil law system, as outlined in Article 122.1 of the Constitution. This article empowers the Confederation to legislate regulations concerning employment contracts, which should include:
We can help you get a new employee started in Switzerland quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations.
For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.
In Switzerland, it’s important to adhere to employment laws surrounding working hours and overtime regulations to remain compliant and boost employee satisfaction.
Employers in Switzerland need to be aware of the specific regulations governing working hours, including the maximum weekly hours of 45 for most employees and 50 for certain sectors. Employees are eligible for 125% of their usual pay for overtime, or employers may opt to grant compensatory time off. Overtime should not exceed two hours per day or a total of 170 hours annually.
The minimum wage for employees in Switzerland is typically 20.25 CHF - 24 CHF per hour, amounting to ~3,240 CHF - 3840 CHF per month for a typical 40 hour work week.
As of 2025, Switzerland does not have a nationwide minimum wage, as wages are primarily determined through collective bargaining agreements between employers and labor unions. However, certain cantons, including Geneva, Neuchâtel, Jura, Ticino, and Basel-City, have implemented their own minimum wage laws. Geneva currently has the highest minimum wage in the world, set at CHF 24 per hour. Employers operating in these regions must comply with local wage regulations to avoid penalties.
The latest regulations indicate a growing trend of cantonal minimum wage laws, driven by public referendums and labor rights advocacy. While Switzerland’s strong economy and competitive labor market often result in wages exceeding minimum thresholds, employers must remain informed about canton-specific requirements. Additionally, industry-specific collective labor agreements (CLAs) may impose higher minimum wages in certain sectors, such as hospitality and construction. Understanding these regulations is crucial for businesses to maintain compliance and ensure fair wages for employees.
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Employer payroll contributions are generally estimated at an additional 8.17% - 23.5% on top of the employee salary in Switzerland.
In Switzerland , the typical estimation for employee payroll contributions cost is around 7.9% - 10.9%.
Switzerland's federal income tax operates on a progressive scale. Alongside the federal tax (detailed below), each canton in Switzerland maintains its own corporate tax law and rate.
In Switzerland, individuals can access state pension benefits via the Old Age and Survivor's Insurance (OASI/AHV) system. Eligibility begins at age 64 for women and age 65 for men. Both employers and employees contribute equally, each at a rate of 5.3%, to the Old Age, Survivors', and Disability Insurance fund.
Employers in Switzerland must manage a complex payroll system that includes contributions to Old Age and Survivors' Insurance (AHV/AVS), Unemployment Insurance (ALV/AC), Accident Insurance (UVG/LAA), and other mandatory levies. Payroll compliance requires accurate calculation of both employee and employer contributions, timely submissions to federal and cantonal authorities, and adherence to local deadlines. Specific rates and procedures vary by canton and industry, adding to the complexity. Utilizing payroll management software can help employers consolidate payroll data, simplify tax calculations, and ensure compliance with Switzerland's intricate tax regulations.
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In Switzerland, work permits and visas are essential for employers hiring foreign workers. The process involves submitting applications to cantonal authorities, obtaining federal approval, and registering employees upon arrival. Key visa types include Permit L, a short-term residence permit for up to one year; Permit B, a renewable temporary residence permit; Permit C, a permanent residence permit granted after ten years; and Permit G, a cross-border commuter permit. Employers must demonstrate the unavailability of Swiss or EU/EFTA candidates, meet quotas, and ensure compliance with local labor laws when sponsoring foreign employees.
The annual leave entitlement in Switzerland is 4 weeks for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.
Public holidays in Switzerland can vary depending on the canton (region) as each one has its own set of holidays in addition to the national holidays. However, the following are the national public holidays in Switzerland:
Employees in Switzerland are entitled to a minimum of four weeks of paid annual leave, with those under 20 years old receiving five weeks of paid leave.
Maternity leave in Switzerland is 14 weeks, and to qualify for maternity allowance, employees must have contributed to OASI for at least nine months before delivery and have worked for a minimum of five months. The allowance is 80% of regular pay, up to a maximum of 196 CHF per day.
Fathers in Switzerland are entitled to 10 days of paid paternity leave, while federal employees can take up to 4 weeks of paternity leave within six months of the child's birth, receiving 80% of their average salary with a maximum daily cap of 220 CHF.
Sick leave duration varies based on an employee's tenure, typically starting with three weeks in the first year. Alternatively, some employers offer benefits insurance, providing 80% of recent salary for up to 720 days of sick leave.
In Switzerland, there is no specific legislation addressing parental leave.
Employees can take 14 weeks of paid leave to care for a seriously ill or injured child, contingent on a doctor's certificate.
The duration of leave for an employee in the event of a relative's death is not explicitly specified in Swiss labor law and is at the discretion of employers. Typically, close relatives may receive three to five days, while one to three days is customary in other cases.
In Switzerland, employees receive a minimum of four weeks of paid annual leave, with those under 20 entitled to five weeks. Sick leave starts at three weeks and increases with tenure, while maternity leave lasts 14 weeks at 80% pay, and fathers receive two weeks of paternity leave.
Parental leave varies by canton, such as Geneva’s 24-week policy. Employers must comply with federal and cantonal laws, clearly communicate leave entitlements, and maintain proper records. Special leave, including family emergencies and unpaid sabbaticals, depends on agreements, and leave cancellations are only allowed in exceptional cases.
Employers in Switzerland are required to provide several mandatory benefits, including Old Age and Survivors' Insurance (AHV), Disability Insurance (IV), Accident Insurance (UVG), Unemployment Insurance (ALV), Maternity Leave, Family Allowances, Occupational Pension Plans (BVG), and Health Insurance. To attract and retain top talent, many employers also offer supplemental benefits such as Supplemental Health Insurance, Additional Pension Contributions, Meal Allowances, Transportation Stipends, Flexible Working Hours, Training Opportunities, Additional Parental Leave, and Holiday Bonuses.
While supplemental benefits are not legally required, they can significantly enhance employee satisfaction and loyalty. Employers should carefully consider both mandatory and supplemental benefits to ensure compliance with Swiss regulations and to foster a supportive and attractive work environment.
Switzerland’s employment termination framework strikes a balance between flexibility for employers and protection for employees. Both parties can terminate contracts without stating a reason, provided they adhere to statutory notice periods, which range from one to three months based on tenure. However, immediate termination without notice is only permitted in cases of serious misconduct. Employees are protected against unfair dismissals, such as those based on discrimination or retaliation, and may claim up to six months' salary as compensation if a termination is deemed abusive.
Severance pay is not generally required by law, but employees over 50 years old with at least 20 years of service may be entitled to a severance allowance, which can be offset by occupational pension benefits. Employers must follow due procedures, including providing written notice, settling final payments, and issuing necessary documentation like work certificates and social insurance records. In cases of collective dismissals, consultation with employee representatives and notification to labor authorities are mandatory. Understanding and adhering to these regulations ensures compliance and a smooth termination process.
In Switzerland, employment is typically at-will, allowing either employers or employees to terminate the job at any time. However, terminations usually require valid reasons. An employee can be fairly terminated for one of the following grounds:
During the probationary period, a seven-day notice is required for termination. After the probationary period, the minimum notice period is 30 days, which increases based on the length of employment:
Severance pay is not mandatory unless specified in the employment agreement or if the employee is 50 or older and has served continuously for over 20 years with the same employer.
Disclaimer
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.
ABOUT THE AUTHOR
Jesse Weisz
Jesse is an experienced R&D Analyst at Playroll, a leading Employer of Record (EOR) provider. With a strong background in data analysis and market research, Jesse specializes in identifying emerging trends and driving innovation in global HR solutions. She is an all-rounder, critical thinker and success-seeker (often inextricably linked to being a late-night tea drinker).
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As of January 2025, Switzerland does not have a national minimum wage; rates are:
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