* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City
Bern
Currency

Swiss Franc (BZ$)

Timezone

CET (GMT +1)

Payroll
Monthly
Employment Cost

8.17% - 23.5%

Annual Leave

4 weeks

In-demand Specialties*
Financial Services, Technical Expertise, It Skills

The Ultimate Guide to Hiring Employees in Switzerland

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.

hiring-in-Switzerland-guide

Key Considerations Before Hiring In Switzerland

Employing in Switzerland requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in Switzerland with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in Switzerland quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

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.

playroll-good-to-know

Fundamental Aspects of Employment in Switzerland

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:

  • Duration of Employment
  • Job Description
  • Working Hours and compensation
  • Termination Conditions

Probationary Period in Switzerland

In Switzerland, probationary periods should not exceed three months. Unless the employment agreement specifies differently, an employee's trial period is limited to the first month of their employment

Working hours in Switzerland

The statutory cap on weekly working hours differs by employment category. Industrial workers, office staff, technicians, and similar roles are restricted to a maximum of 45 hours per week, whereas other worker categories have a limit of 50 hours. Most employees typically work a standard week of 40 to 42 hours.

Overtime in Switzerland

In Switzerland, overtime refers to work performed beyond the established standard hours. 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.

Navigating Key Aspects of Payroll in Switzerland

Switzerland has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 January- 31 December

Fiscal Year in Switzerland

1 January- 31 December is the 12-month accounting period that businesses in Switzerland use for financial and tax reporting purposes.
monthly

Payroll Cycle in Switzerland

The payroll cycle in Switzerland is usually monthly, with employees being paid on or before the last day of the month.
20.25 CHF - 24 CHF p/h

Minimum Wage in Switzerland

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.

Minimum wages and salaries in Switzerland

While Switzerland does not have a nationwide minimum wage, several cantons have implemented regional minimum wage standards. The current minimum wage rates in Switzerland are determined as follows:Geneva: CHF 24Jura: CHF 20.60Neuchâtel: CHF 20.77Ticino: CHF 19.75 to CHF 20.25Basel City: CHF 21.45

Bonus Payments in Switzerland

A 13th salary is not obligatory in Switzerland, but it is widely practiced, and if applicable, it will be specified in the employment contract or covered by a collective bargaining agreement.

Comprehensive Overview of Employment Taxes in Switzerland

Understanding the tax obligations for both employers and employees is crucial when operating in Switzerland's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Switzerland.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 8.17% - 23.5% on top of the employee salary in Switzerland.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In Switzerland, the typical estimation for employee payroll contributions cost is around 7.9% – 10.9%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

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.

Tax Rate Income Bracket

Pension in Switzerland

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 4.35%, to the Old Age, Survivors', and Disability Insurance fund.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Switzerland tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in Switzerland

When it comes to terminating employment in Switzerland, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

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:

  • Voluntary resignation
  • Mutual agreement
  • Objective grounds
  • Disciplinary dismissal

Notice Period

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:

  • 30 days for one year of service.
  • 60 days for service between the second and ninth years.
  • 90 days for service exceeding ten years.

Severance Pay

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.

Annual Leave Entitlements and Company Policies in Switzerland

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

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:

Holiday Date

Paid Time Off in Switzerland

Maternity Leave in Switzerland

Paternity Leave in Switzerland

Sick Leave in Switzerland

Care Leave

Bereavement Leave

Parental Leave In Switzerland

Switzerland's Benefits Built Into Playroll

Competitive benefits package in Switzerland

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in Switzerland's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In Switzerland

Make your benefits package in Switzerland a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

  • Health Insurance
  • Pension
  • Short-Term Sickness Insurance
  • Long-Term/Disability Insurance
  • Death Benefit
  • Workman's Compensation
  • Background Checks
  • IT Equipment Sourcing

Statutory benefits for employment in Switzerland

Playroll allows you to provide localized benefits for employees in Switzerland within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in Switzerland create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for Switzerland

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in Switzerland.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

Playroll makes it easy!