Switzerland

Contractor Management
EOR
Payroll
Contractor of Record
Currency
Swiss Franc (CHF)
Payroll Frequency
Employer Taxes

Overview

Population
Language
Capital
Currency
Swiss Franc (CHF)
Country code
Min wage
Working hours
Weekdays
Work hours per week

Payroll

Salaried Employees
Time-Based Employees
13th Salary
Avg employer tax

Tax Breakdown

VAT

VAT
Tax Calculation for Switzerland
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Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation
How it works

Onboarding Process

Onboarding in Switzerland typically includes the following steps to ensure a smooth transition for new hires:

Pre-boarding

Pre-boarding

Pre-boarding

Key Elements of an Employment Contract in Switzerland
When drafting an employment contract for employees in Switzerland, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

Employee Leave Policies

Sick days
Maternity leave
Paternity leave
Annual Leave
Public holidays in Switzerland

Termination Process

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Grow Your Team in Switzerland
with RemotePass

From onboarding and payroll to offboarding and visa support, RemotePass simplifies it all so you can focus on growing your team.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including Switzerland.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

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Hiring in Switzerland | Payroll, Tax & Employment Guide

Switzerland is home to a multilingual workforce with a reputation for reliability, but it comes with a list of employment quirks. This guide covers it all, so you can hire in Switzerland with confidence.

RemotePass makes hiring in Switzerland simple. We handle compliance, contracts, and payroll. You focus on building your business.

Key Takeaways For Hiring in Switzerland

  • Switzerland has no nationwide minimum wage, but several cantons enforce their own rates (Geneva: CHF 24.32/hour, Neuchâtel: CHF 21.09/hour, Jura: CHF 20.60/hour, Ticino: CHF 20.75/hour).
  • Employer social contributions typically range from 14-17%, covering old-age and disability insurance, unemployment, accident insurance, and occupational pensions.
  • Every resident must obtain their own basic health insurance within three months of arrival. Employers aren't required to subsidize premiums.
  • Severance isn't required except for employees aged 50 or older with 20-plus years of service, or when contractually agreed.

Quick Facts For Hiring in Switzerland

Continent
Europe
Capital
Bern
Currency
Swiss Franc (CHF)
Language
German, French, Italian, and Romansh.
Payroll Cycle
Monthly
Pay Date
Last working day of the month

Switzerland Employment Contract Overview

Swiss contracts are straightforward, but they must cover specific terms to comply with the Code of Obligations.

Below are the core terms it must cover:

Contract Type
Fixed-term/Open-ended
Local Language Required?
No
Bilingual?
No
Probation Period
Default probation is one month. Employers may set a different duration by written agreement or standard employment contract, but the probation period cannot exceed three months.
Minimum Paid Time Off
Four weeks (20 working days)
Public Holidays
Switzerland has no nationwide holiday list. Only August 1 (Swiss National Day) is a federal holiday. All other public holidays are set by canton and range from seven to 15 days per year, depending on region. Employers must honor the public holidays applicable to their canton or the employee’s work location.
Notice Period
During Probation: Seven days
First year of employment: One month
Two years to nine years: Two months
10th year and onward: Three months

What Do You Need To Include in a Swiss Employment Contract?

Every employment contract in Switzerland must include the following key details to stay compliant with Swiss labor law and ensure clarity for both parties:

Employee Information

  • Full name
  • ID number
  • Role / Job title
  • Start date
  • Contract duration
  • Working hours
  • Probation and notice conditions
  • Termination provisions
  • Compensation details

How Does Payroll and Taxation Work in Switzerland?

Swiss payroll runs monthly and includes several mandatory social insurance contributions plus federal and cantonal taxes.

Here’s what employers need to know:

Payroll Setup

Salary currency

Swiss Franc ( CHF)

Minimum Wage

Switzerland has no nationwide minimum wage. Some cantons enforce statutory minimums that apply to all workers, including foreign nationals:

  • Geneva: CHF 24.32/hour
  • Neuchâtel: CHF 21.09/hour
  • Jura: CHF 20.60/hour
  • Ticino: CHF 20.75/hour
  • Basel-Stadt: Minimum wage law approved; implementation pending

Hours per Week

Swiss labour law allows up to 45 hours/week for office, technical, and industrial roles and up to 50 hours/week for occupations such as retail and services

Payroll Frequency

Monthly

Weekdays

Monday through Friday

Mandatory Bonuses

A 13th-month salary is not required by federal law but is very common (80% of employees). It must be paid if included in the employment contract or CBA, typically in December or split between June and December.

Gross Salary Structure

The Swiss law doesn’t set a standard gross salary structure.

What Payroll Taxes Do Employers Pay in Switzerland?

Employer cost % (estimate):


Employer Cost %

Contributions Breakdown


AHV / IV / EO (Old-Age, Survivors, Disability & Income Compensation Insurance):

Unemployment Insurance (ALV):

1.1% on salary up to CHF 148,200 per year. For earnings above this amount, an additional 0.5% is required.

Occupational Pension (Second Pillar / BVG/LPP):

Mandatory for employees earning above threshold (CHF 22,680–21,510/year): 3.5% - 9%

Family Allowance Contributions:

Employer-only rate, varies by canton (approximately 1%–3%).

Occupational Accident (UVG):

0.2%–1%

Sickness Benefit Insurance (Optional):

This is not mandatory, but is commonly provided. It is shared or fully paid by the employer(1% of salary).

What Payroll Taxes Do Employees Pay In Switzerland?

Individual Income Tax

Switzerland uses a three-tier tax system that includes federal, cantonal, and municipal taxes. Federal tax rates are progressive and consistent nationwide, while cantonal and municipal rates vary widely. The average total tax burden is around 34%, but it can range from about 22% in Zug to 45.5% in Geneva, depending on income and location.

Social Contributions


Unemployment Insurance (ALV):

1.1% on annual earnings up to CHF 148,200, plus an additional 0.5% on income above that threshold

Occupational Pension (Second Pillar / BVG/LPP):

Required for employees earning above the annual threshold (approximately CHF 22,680 - 21,510); contributions range from 3.5% to 9%

Non-Occupational Accident Insurance (NBU):

Typically 1% - 4%, depending on the insurer

Hiring cost calculator 

*
Thank you! Your submission has been received!
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CH
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation

Mandatory Employee Benefits In Switzerland

Benefits Provider Mandatory? Notes
Health Insurance (LAMal/KVG) Employee

Monthly premiums

Every resident, including expats, must obtain basic health insurance within three months of arriving in Switzerland. Coverage must be purchased from a licensed Swiss insurer.

Employers are not required to pay or subsidize premiums. Monthly premiums vary by canton and insurer (approximately CHF 250 - 500/month).

Pension / Social Security Government

Payroll Contributions

(Pillar 1)State Pension (AHV/IV/EO): Covers old age (AHV), disability (IV), and loss of income (EO).

Total contribution: 10.6% of salary (split 5.3% employer / 5.3% employee). Mandatory from age 18.

(Pillar 2)Occupational Pension (BVG/LPP): Mandatory if salary exceeds CHF 22,050/year.

Contributions depend on age (approx. 7% - 18%) and are shared, with the employer paying at least 50%.

Other Statutory Benefits Government

Payroll Contributions

Includes Accident Insurance (UVG), Unemployment Insurance (ALV), and Family Allowances.

Family allowances are funded only by employers (approximately 1% - 3% of salary depending on canton). Employees do not contribute.

Leave And Holiday Entitlement in Switzerland

Annual leave

Switzerland regulates annual leave under Article 329a of the Swiss Code of Obligations.

Employees receive:

  • Four weeks (20 working days) of paid annual leave per year

  • Five weeks for employees under age 20

Leave applies uniformly across Switzerland and is pro-rated for part-time schedules. At least two consecutive weeks must be taken together each year.

Public holidays

Switzerland does not have a nationwide list of public holidays. Only August 1 (Swiss National Day) is recognized at the federal level.

All other public holidays are set by canton, ranging from seven to 15 days per year depending on the region.

Employers must follow the holiday calendar for their registered office or the employee’s work location.

Common canton-specific holidays include:

  • New Year's Day (Jan 1)

  • Good Friday

  • Easter Monday

  • Ascension Day

  • Whit Monday

  • Swiss National Day (Aug 1)

  • Christmas (Dec 25)

  • Boxing Day (Dec 26)

  • Federal Day of Prayer (varies by canton)

Sick Leave

Switzerland has no national minimum for sick leave.

Common employer practices include:

  • Three weeks of paid sick leave in the first year

  • After that, income is typically covered through employer insurance schemes, often paying 80% of salary for extended periods, depending on the employment contract or collective agreement.

Maternity Leave

Female employees are entitled to 14 weeks of paid maternity leave nationwide, with 16 weeks in Geneva.

Eligibility requires:

  • 270 days (nine months) of compulsory AHV insurance, and

  • At least five months of employment during pregnancy

Key rules:

  • Employees may not work during the first eright weeks after childbirth

  • Leave is paid at 80% of average earnings, capped at approximately CHF 196–220 per day

Paternity Leave

Fathers (or co-parents in same-sex couples) receive two weeks of paid paternity leave, taken within six months of the child’s birth.

Eligibility matches maternity leave requirements:

  • 270 days of AHV insurance

  • Five months of employment

Compensation is 80% of salary, capped at CHF 220 per day, funded through the Loss-of-Earnings Compensation (EO/APG) scheme.

Employees receive 10 leave days plus supplemental allowances, up to a maximum of 14 days.

Other Types of Leave

  • Adoption Leave: Adoptive parents of a child under age four receive two weeks of paid leave, funded via EO/APG. Leave may be shared or taken individually.

  • Bereavement Leave: Not mandated. Employers typically grant up to three days for the death of a close family member, depending on contract or CBA.

  • Parental Leave (Care Leave): Employees receive paid leave to care for a family member or life partner with health issues, limited to three days per event and 10 days per year.

Termination And Offboarding in Switzerland

Type Possible?
Termination for Cause (poor performance, misconduct, etc.) Yes
Termination without Cause Yes
Mutual Termination Agreement (MTA) Yes
Redundancy Not possible under the EOR setup

Employee Resignations

Employee
Resignations

 Termination with Cause

Termination
with Cause

Termination without Cause

Termination
without Cause

Mutual Termination Agreement

Mutual Termination
Agreement

 Fixed Term Contract

Fixed Term
Contract

Swiss Employee Resignation

Notice

Form

Written.

Notice period

If the employment contract or collective agreement doesn’t set a notice period, the employee must follow Switzerland’s statutory schedule:

  • During probation (max three months): Seven days

  • After probation through the first year: one month

  • Second to ninth year: Two months

  • Tenth year onward: Three months

Employees may resign without notice if there is just cause. Swiss law defines just cause as any situation that makes it unreasonable, in good faith, for the employee to continue working. In these cases, the employee can also claim compensation for losses caused by the employer’s actions.

End-of-Service Benefits

Severance/Gratuity

  • There is no legal obligation for an employer to provide severance or gratuity when an employee resigns, regardless of tenure or contract type.
  • Severance is only required in very limited cases. Most notably, for employees aged 50 or over with 20+ years of service, under Article 339b CO.

Employer Termination With Cause in Switzerland

Acceptable grounds

An employer may terminate the employment contract without notice if there is just cause. Under the Swiss Code of Obligations, just cause refers to any situation that makes it unreasonable, in good faith, for the employer to continue the working relationship. When dismissal is based on just cause, the employer may also seek compensation for any loss caused by the employee’s actions.

Notice

Form

Written.

Notice period

The employer must provide written notice of resignation if the employment contract or collective labor agreement does not specify notice periods according to the flowing schedule:

  • During the probationary period (which must not exceed three months): Seven days

  • After completing probation but within the first year of service: One month

  • From the second to the ninth year of service: Two months

  • After nine years of continuous service: Three months

End-of-Service Benefits

Severance

In Switzerland, employees are generally not entitled to severance pay when terminated for "just cause" (also known as "serious cause" or extraordinary dismissal).

Other Benefits

When an employee leaves the company, the employer is required to provide a written reference or proof of employment. This document is essential for the former employee to qualify for unemployment benefits.

Employer Termination Without Cause in Switzerland

Acceptable grounds

Freedom of Termination: Swiss law follows the principle of freedom of termination (Kündigungsfreiheit). This means either party can end the employment relationship without giving a specific reason, as long as they follow the required notice period under the Swiss Code of Obligations (Art. 335).

Notice

Statutory minimum notice periods after probation are:

  • During the first year of service: One month

  • Between the second and ninth year: Two months

  • 10th year onward: Three months

Notices generally must be given to take effect at the end of the calendar month.

These periods may be extended, but not shortened below one month, by contract or collective agreement (GAV).

End-of-Service Benefits

Severance

In Switzerland, when an employer terminates an employee without cause (ordinary termination), the legal framework does not require any statutory severance pay in most cases.

Mutual Termination Agreements in Switzerland

In Switzerland, mutual termination agreements known as Aufhebungsverträge allow both parties to end an employment relationship by consent. Under Article 115 of the Swiss Code of Obligations (OR), employers and employees can mutually end a fixed-term or open-ended contract at any time. Swiss law gives both sides broad contractual freedom (Vertragsfreiheit), which means you can agree on terms that suit both parties.

Offboarding Process for the End of Fixed-term Contracts in Switzerland

If the Fixed-Term Contract Ends Normally

Notice

  • As per Art. 334(1) of CO: Fixed-term contracts automatically end on the agreed date, without notice.
  • No notice or renewal is required unless a new agreement is made.

End-of-Service Benefits

Severance/Gratuity

Not required unless:

  • Employee qualifies under Art. 339b CO (aged 50+ with 20+ years of service)
  • It is contractually agreed or part of a social plan

Other Benefits

  • Salary up to the last working day
  • Any outstanding overtime, vacation, or expenses
  • Employee is entitled to a final reference letter upon request (Work certificate - Art. 330a CO)

If the Employer Terminates Early

Acceptable Grounds

  • Under Art. 335 CO, a fixed-term contract cannot be terminated early unless:
    • Both parties mutually agree to end the contract early, or
    • There is "just cause" (Art. 337 CO), e.g., serious misconduct
  • Ordinary termination with notice does not apply to fixed-term contracts. Any early termination outside of just cause is considered a breach of contract.

End-of-Service Benefits

Severance/Gratuity

  • If termination is for just cause (Art. 337 CO), it must be immediate and justified by serious breach of trust.
  • Full remaining salary until the original contract end date
    • Up to 6 months' salary as penalty compensation (Art. 337c(3) CO)
    • Possible additional damages (e.g., job search costs)

Final Payment Timing & Immigration and Visa Compliance in Switzerland

Final Payment Deadline: There is no specific statutory deadline in Swiss federal law (e.g., Swiss Code of Obligations) for when a final salary must be paid after termination. However, as best practice, the final payment is typically due on the next regular salary date, unless contractually agreed otherwise or in case of immediate termination.

Key Elements of an Employment Contract in Switzerland
When drafting an employment contract for employees in Switzerland, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Hire in Switzerland Compliantly

From onboarding and payroll to offboarding and visa support, RemotePass simplifies it all so you can focus on growing your team.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including Switzerland.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

FAQs About Hiring in Switzerland

Got Questions? Find Answers Here

Do I need to provide health insurance for employees in Switzerland?

Do I need to provide health insurance for employees in Switzerland? No. Every resident must obtain their own basic health insurance (LAMal/KVG) within three months of arrival. Employers aren't required to pay or subsidize premiums, which typically range from CHF 250-500/month depending on canton and insurer.

What's a 13th-month salary and is it mandatory?

A 13th-month salary is an extra month's pay, typically paid in December or split between June and December. It's not federally mandated but is very common (80% of employees receive it) and must be paid if included in the employment contract or collective bargaining agreement.

Can I terminate an employee without giving a reason in Switzerland?

Yes. Swiss law follows freedom of termination, meaning either party can end employment without stating a reason as long as proper notice is given. However, the termination can't be abusive (discriminatory, retaliatory, or during protected periods like maternity leave).

What happens to an employee's work permit after termination?

Employers must notify cantonal migration authorities when a foreign employee leaves. The employee typically has 30-90 days (depending on permit type and canton) to find new employment before their permit becomes invalid.

Are public holidays the same across Switzerland?

No. Only August 1 (Swiss National Day) is a federal holiday. All other public holidays are set by canton, ranging from seven to 15 days per year. Employers must follow the holiday calendar for their registered office or the employee's work location.

How much notice is required to terminate employment?

It depends on tenure. After probation: one month during the first year, two months from years two to nine, and three months from year 10 onward. Notice must typically be given to take effect at the end of the calendar month.

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Switzerland

Contractor Management
EOR
Payroll
Contractor of Record
العملة
Swiss Franc (CHF)
تردد الرواتب
ضرائب أصحاب العمل

نظرة عامة

التركيبة السكانية
اللغة
العاصمة
العملة
Swiss Franc (CHF)
رمز الاتصال الدولي
الحد الأدنى للأجور
ساعات العمل
أيام الأسبوع
ساعات العمل اسبوعيا

الرواتب

الموظفون برواتب ثابتة
الموظفون بنظام الأجر الزمني
13th Salary
متوسط ​​ضريبة صاحب العمل

تحصيل الضرائب

ضريبة القيمة المضافة

ضريبة القيمة المضافة
حساب الضريبة في Switzerland
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CH
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تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
GBP 9,633
إجمالي تكاليف الراتب الشهري
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب الشهري

GBP 5,137
الراتب الشهري الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
تكلفة صاحب العمل
إجمالي تكلفة التوظيف السنوية
GBP 9,633
إجمالي تكاليف الرواتب السنوية
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب السنوي

GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
اطلب عرض أسعار تفصيلي
كيف تعمل الخدمة

عملية الانضمام

تشمل عملية التوظيف في Switzerland عادة الخطوات التالية لضمان انتقال سلس للموظفين الجدد:

Pre-boarding

Pre-boarding

Pre-boarding

العناصر الأساسية في عقد العمل في Switzerland
عند إعداد عقد عمل للموظفين في Switzerland يجب تضمين العناصر الأساسية التالية:

Personal Details

Name, contact information, and role of the employee.

سياسات إجازات الموظفين

الإجازات المرضية
إجازة الأمومة
إجازة الأبوة
الإجازة السنوية
عطلات رسمية في Switzerland

عملية إنهاء العقود

Personal Details

Name, contact information, and role of the employee.

نمو سوق العمل عن بُعد _  

تحديات التوظيف عن بُعد في  _

تبسيط التوظيف عن بُعد في _ مع ريموت باس

نمِّ فريقك في Switzerland
مع ريموت باس

From onboarding and payroll to offboarding and visa support, RemotePass simplifies it all so you can focus on growing your team.

يصبح بناء فريق عالمي وتوسيعه مهمة سهلة مع ريموت باس. منصتنا تبسّط تعقيدات التوظيف والرواتب والامتثال القانوني في أكثر من 150 دولة، بما في ذلك Switzerland.

مع ريموت باس، يمكنك ضم الموظفين الدوليين بسرعة، وإدارة الرواتب، وضمان الامتثال القانوني، وتقديم مزايا تنافسية — كل ذلك من مكان واحد. ركّز على تنمية أعمالك، ودع المهام الإدارية والقانونية علينا.

تجربة مجانية لمدة 7 أيام

لا حاجة لبطاقة ائتمان

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Hiring in Switzerland | Payroll, Tax & Employment Guide

Switzerland is home to a multilingual workforce with a reputation for reliability, but it comes with a list of employment quirks. This guide covers it all, so you can hire in Switzerland with confidence.

RemotePass makes hiring in Switzerland simple. We handle compliance, contracts, and payroll. You focus on building your business.

Key Takeaways For Hiring in Switzerland

  • Switzerland has no nationwide minimum wage, but several cantons enforce their own rates (Geneva: CHF 24.32/hour, Neuchâtel: CHF 21.09/hour, Jura: CHF 20.60/hour, Ticino: CHF 20.75/hour).
  • Employer social contributions typically range from 14-17%, covering old-age and disability insurance, unemployment, accident insurance, and occupational pensions.
  • Every resident must obtain their own basic health insurance within three months of arrival. Employers aren't required to subsidize premiums.
  • Severance isn't required except for employees aged 50 or older with 20-plus years of service, or when contractually agreed.

Quick Facts For Hiring in Switzerland

Continent
Europe
Capital
Bern
Currency
Swiss Franc (CHF)
Language
German, French, Italian, and Romansh.
Payroll Cycle
Monthly
Pay Date
Last working day of the month

Switzerland Employment Contract Overview

Swiss contracts are straightforward, but they must cover specific terms to comply with the Code of Obligations.

Below are the core terms it must cover:

Contract Type
Fixed-term/Open-ended
Local Language Required?
No
Bilingual?
No
Probation Period
Default probation is one month. Employers may set a different duration by written agreement or standard employment contract, but the probation period cannot exceed three months.
Minimum Paid Time Off
Four weeks (20 working days)
Public Holidays
Switzerland has no nationwide holiday list. Only August 1 (Swiss National Day) is a federal holiday. All other public holidays are set by canton and range from seven to 15 days per year, depending on region. Employers must honor the public holidays applicable to their canton or the employee’s work location.
Notice Period
During Probation: Seven days
First year of employment: One month
Two years to nine years: Two months
10th year and onward: Three months

What Do You Need To Include in a Swiss Employment Contract?

Every employment contract in Switzerland must include the following key details to stay compliant with Swiss labor law and ensure clarity for both parties:

Employee Information

  • Full name
  • ID number
  • Role / Job title
  • Start date
  • Contract duration
  • Working hours
  • Probation and notice conditions
  • Termination provisions
  • Compensation details

How Does Payroll and Taxation Work in Switzerland?

Swiss payroll runs monthly and includes several mandatory social insurance contributions plus federal and cantonal taxes.

Here’s what employers need to know:

Payroll Setup

Salary currency

Swiss Franc ( CHF)

Minimum Wage

Switzerland has no nationwide minimum wage. Some cantons enforce statutory minimums that apply to all workers, including foreign nationals:

  • Geneva: CHF 24.32/hour
  • Neuchâtel: CHF 21.09/hour
  • Jura: CHF 20.60/hour
  • Ticino: CHF 20.75/hour
  • Basel-Stadt: Minimum wage law approved; implementation pending

Hours per Week

Swiss labour law allows up to 45 hours/week for office, technical, and industrial roles and up to 50 hours/week for occupations such as retail and services

Payroll Frequency

Monthly

Weekdays

Monday through Friday

Mandatory Bonuses

A 13th-month salary is not required by federal law but is very common (80% of employees). It must be paid if included in the employment contract or CBA, typically in December or split between June and December.

Gross Salary Structure

The Swiss law doesn’t set a standard gross salary structure.

What Payroll Taxes Do Employers Pay in Switzerland?

Employer cost % (estimate):


Employer Cost %

Contributions Breakdown


AHV / IV / EO (Old-Age, Survivors, Disability & Income Compensation Insurance):

Unemployment Insurance (ALV):

1.1% on salary up to CHF 148,200 per year. For earnings above this amount, an additional 0.5% is required.

Occupational Pension (Second Pillar / BVG/LPP):

Mandatory for employees earning above threshold (CHF 22,680–21,510/year): 3.5% - 9%

Family Allowance Contributions:

Employer-only rate, varies by canton (approximately 1%–3%).

Occupational Accident (UVG):

0.2%–1%

Sickness Benefit Insurance (Optional):

This is not mandatory, but is commonly provided. It is shared or fully paid by the employer(1% of salary).

What Payroll Taxes Do Employees Pay In Switzerland?

Individual Income Tax

Switzerland uses a three-tier tax system that includes federal, cantonal, and municipal taxes. Federal tax rates are progressive and consistent nationwide, while cantonal and municipal rates vary widely. The average total tax burden is around 34%, but it can range from about 22% in Zug to 45.5% in Geneva, depending on income and location.

Social Contributions


Unemployment Insurance (ALV):

1.1% on annual earnings up to CHF 148,200, plus an additional 0.5% on income above that threshold

Occupational Pension (Second Pillar / BVG/LPP):

Required for employees earning above the annual threshold (approximately CHF 22,680 - 21,510); contributions range from 3.5% to 9%

Non-Occupational Accident Insurance (NBU):

Typically 1% - 4%, depending on the insurer

حاسبة تكلفة التوظيف

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تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
GBP 9,633
إجمالي تكاليف الراتب الشهري
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب الشهري

GBP 5,137
الراتب الشهري الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
تكلفة صاحب العمل
إجمالي تكلفة التوظيف السنوية
GBP 9,633
إجمالي تكاليف الرواتب السنوية
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب السنوي

GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
اطلب عرض أسعار تفصيلي

Mandatory Employee Benefits In Switzerland

Benefits Provider Mandatory? Notes
Health Insurance (LAMal/KVG) Employee

Monthly premiums

Every resident, including expats, must obtain basic health insurance within three months of arriving in Switzerland. Coverage must be purchased from a licensed Swiss insurer.

Employers are not required to pay or subsidize premiums. Monthly premiums vary by canton and insurer (approximately CHF 250 - 500/month).

Pension / Social Security Government

Payroll Contributions

(Pillar 1)State Pension (AHV/IV/EO): Covers old age (AHV), disability (IV), and loss of income (EO).

Total contribution: 10.6% of salary (split 5.3% employer / 5.3% employee). Mandatory from age 18.

(Pillar 2)Occupational Pension (BVG/LPP): Mandatory if salary exceeds CHF 22,050/year.

Contributions depend on age (approx. 7% - 18%) and are shared, with the employer paying at least 50%.

Other Statutory Benefits Government

Payroll Contributions

Includes Accident Insurance (UVG), Unemployment Insurance (ALV), and Family Allowances.

Family allowances are funded only by employers (approximately 1% - 3% of salary depending on canton). Employees do not contribute.

Leave And Holiday Entitlement in Switzerland

Annual leave

Switzerland regulates annual leave under Article 329a of the Swiss Code of Obligations.

Employees receive:

  • Four weeks (20 working days) of paid annual leave per year

  • Five weeks for employees under age 20

Leave applies uniformly across Switzerland and is pro-rated for part-time schedules. At least two consecutive weeks must be taken together each year.

Public holidays

Switzerland does not have a nationwide list of public holidays. Only August 1 (Swiss National Day) is recognized at the federal level.

All other public holidays are set by canton, ranging from seven to 15 days per year depending on the region.

Employers must follow the holiday calendar for their registered office or the employee’s work location.

Common canton-specific holidays include:

  • New Year's Day (Jan 1)

  • Good Friday

  • Easter Monday

  • Ascension Day

  • Whit Monday

  • Swiss National Day (Aug 1)

  • Christmas (Dec 25)

  • Boxing Day (Dec 26)

  • Federal Day of Prayer (varies by canton)

Sick Leave

Switzerland has no national minimum for sick leave.

Common employer practices include:

  • Three weeks of paid sick leave in the first year

  • After that, income is typically covered through employer insurance schemes, often paying 80% of salary for extended periods, depending on the employment contract or collective agreement.

Maternity Leave

Female employees are entitled to 14 weeks of paid maternity leave nationwide, with 16 weeks in Geneva.

Eligibility requires:

  • 270 days (nine months) of compulsory AHV insurance, and

  • At least five months of employment during pregnancy

Key rules:

  • Employees may not work during the first eright weeks after childbirth

  • Leave is paid at 80% of average earnings, capped at approximately CHF 196–220 per day

Paternity Leave

Fathers (or co-parents in same-sex couples) receive two weeks of paid paternity leave, taken within six months of the child’s birth.

Eligibility matches maternity leave requirements:

  • 270 days of AHV insurance

  • Five months of employment

Compensation is 80% of salary, capped at CHF 220 per day, funded through the Loss-of-Earnings Compensation (EO/APG) scheme.

Employees receive 10 leave days plus supplemental allowances, up to a maximum of 14 days.

Other Types of Leave

  • Adoption Leave: Adoptive parents of a child under age four receive two weeks of paid leave, funded via EO/APG. Leave may be shared or taken individually.

  • Bereavement Leave: Not mandated. Employers typically grant up to three days for the death of a close family member, depending on contract or CBA.

  • Parental Leave (Care Leave): Employees receive paid leave to care for a family member or life partner with health issues, limited to three days per event and 10 days per year.

Termination And Offboarding in Switzerland

Type Possible?
Termination for Cause (poor performance, misconduct, etc.) Yes
Termination without Cause Yes
Mutual Termination Agreement (MTA) Yes
Redundancy Not possible under the EOR setup

Employee Resignations

Employee
Resignations

 Termination with Cause

Termination
with Cause

Termination without Cause

Termination
without Cause

Mutual Termination Agreement

Mutual Termination
Agreement

 Fixed Term Contract

Fixed Term
Contract

Swiss Employee Resignation

Notice

Form

Written.

Notice period

If the employment contract or collective agreement doesn’t set a notice period, the employee must follow Switzerland’s statutory schedule:

  • During probation (max three months): Seven days

  • After probation through the first year: one month

  • Second to ninth year: Two months

  • Tenth year onward: Three months

Employees may resign without notice if there is just cause. Swiss law defines just cause as any situation that makes it unreasonable, in good faith, for the employee to continue working. In these cases, the employee can also claim compensation for losses caused by the employer’s actions.

End-of-Service Benefits

Severance/Gratuity

  • There is no legal obligation for an employer to provide severance or gratuity when an employee resigns, regardless of tenure or contract type.
  • Severance is only required in very limited cases. Most notably, for employees aged 50 or over with 20+ years of service, under Article 339b CO.

Employer Termination With Cause in Switzerland

Acceptable grounds

An employer may terminate the employment contract without notice if there is just cause. Under the Swiss Code of Obligations, just cause refers to any situation that makes it unreasonable, in good faith, for the employer to continue the working relationship. When dismissal is based on just cause, the employer may also seek compensation for any loss caused by the employee’s actions.

Notice

Form

Written.

Notice period

The employer must provide written notice of resignation if the employment contract or collective labor agreement does not specify notice periods according to the flowing schedule:

  • During the probationary period (which must not exceed three months): Seven days

  • After completing probation but within the first year of service: One month

  • From the second to the ninth year of service: Two months

  • After nine years of continuous service: Three months

End-of-Service Benefits

Severance

In Switzerland, employees are generally not entitled to severance pay when terminated for "just cause" (also known as "serious cause" or extraordinary dismissal).

Other Benefits

When an employee leaves the company, the employer is required to provide a written reference or proof of employment. This document is essential for the former employee to qualify for unemployment benefits.

Employer Termination Without Cause in Switzerland

Acceptable grounds

Freedom of Termination: Swiss law follows the principle of freedom of termination (Kündigungsfreiheit). This means either party can end the employment relationship without giving a specific reason, as long as they follow the required notice period under the Swiss Code of Obligations (Art. 335).

Notice

Statutory minimum notice periods after probation are:

  • During the first year of service: One month

  • Between the second and ninth year: Two months

  • 10th year onward: Three months

Notices generally must be given to take effect at the end of the calendar month.

These periods may be extended, but not shortened below one month, by contract or collective agreement (GAV).

End-of-Service Benefits

Severance

In Switzerland, when an employer terminates an employee without cause (ordinary termination), the legal framework does not require any statutory severance pay in most cases.

Mutual Termination Agreements in Switzerland

In Switzerland, mutual termination agreements known as Aufhebungsverträge allow both parties to end an employment relationship by consent. Under Article 115 of the Swiss Code of Obligations (OR), employers and employees can mutually end a fixed-term or open-ended contract at any time. Swiss law gives both sides broad contractual freedom (Vertragsfreiheit), which means you can agree on terms that suit both parties.

Offboarding Process for the End of Fixed-term Contracts in Switzerland

If the Fixed-Term Contract Ends Normally

Notice

  • As per Art. 334(1) of CO: Fixed-term contracts automatically end on the agreed date, without notice.
  • No notice or renewal is required unless a new agreement is made.

End-of-Service Benefits

Severance/Gratuity

Not required unless:

  • Employee qualifies under Art. 339b CO (aged 50+ with 20+ years of service)
  • It is contractually agreed or part of a social plan

Other Benefits

  • Salary up to the last working day
  • Any outstanding overtime, vacation, or expenses
  • Employee is entitled to a final reference letter upon request (Work certificate - Art. 330a CO)

If the Employer Terminates Early

Acceptable Grounds

  • Under Art. 335 CO, a fixed-term contract cannot be terminated early unless:
    • Both parties mutually agree to end the contract early, or
    • There is "just cause" (Art. 337 CO), e.g., serious misconduct
  • Ordinary termination with notice does not apply to fixed-term contracts. Any early termination outside of just cause is considered a breach of contract.

End-of-Service Benefits

Severance/Gratuity

  • If termination is for just cause (Art. 337 CO), it must be immediate and justified by serious breach of trust.
  • Full remaining salary until the original contract end date
    • Up to 6 months' salary as penalty compensation (Art. 337c(3) CO)
    • Possible additional damages (e.g., job search costs)

Final Payment Timing & Immigration and Visa Compliance in Switzerland

Final Payment Deadline: There is no specific statutory deadline in Swiss federal law (e.g., Swiss Code of Obligations) for when a final salary must be paid after termination. However, as best practice, the final payment is typically due on the next regular salary date, unless contractually agreed otherwise or in case of immediate termination.

Key Elements of an Employment Contract in Switzerland
When drafting an employment contract for employees in Switzerland, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

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FAQs About Hiring in Switzerland

Got Questions? Find Answers Here

Do I need to provide health insurance for employees in Switzerland?

Do I need to provide health insurance for employees in Switzerland? No. Every resident must obtain their own basic health insurance (LAMal/KVG) within three months of arrival. Employers aren't required to pay or subsidize premiums, which typically range from CHF 250-500/month depending on canton and insurer.

What's a 13th-month salary and is it mandatory?

A 13th-month salary is an extra month's pay, typically paid in December or split between June and December. It's not federally mandated but is very common (80% of employees receive it) and must be paid if included in the employment contract or collective bargaining agreement.

Can I terminate an employee without giving a reason in Switzerland?

Yes. Swiss law follows freedom of termination, meaning either party can end employment without stating a reason as long as proper notice is given. However, the termination can't be abusive (discriminatory, retaliatory, or during protected periods like maternity leave).

What happens to an employee's work permit after termination?

Employers must notify cantonal migration authorities when a foreign employee leaves. The employee typically has 30-90 days (depending on permit type and canton) to find new employment before their permit becomes invalid.

Are public holidays the same across Switzerland?

No. Only August 1 (Swiss National Day) is a federal holiday. All other public holidays are set by canton, ranging from seven to 15 days per year. Employers must follow the holiday calendar for their registered office or the employee's work location.

How much notice is required to terminate employment?

It depends on tenure. After probation: one month during the first year, two months from years two to nine, and three months from year 10 onward. Notice must typically be given to take effect at the end of the calendar month.

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