Hire Contractors & Employees in Switzerland

Hiring in

Switzerland

isn't so simple. Borderless can help.

To hire new employees in

Switzerland

, your business must have a local legal entity or an Employer of Record like Borderless in place already. Then there’s the management of local employment compliance, taxes, benefits, payroll, and more. Hiring contractors poses similar challenges.

Borderless handles all of that for you, so you can focus on getting to work with your new team member in

Switzerland

while staying fully compliant with local laws and compliance.

Primary Language

German, Romansh, French, Italian

Currency

Swiss franc (Fr, CHF)

Payroll Frequency

Monthly

Public Holidays

10 days

Employer Taxes

12 - 20%

Cost of Living Index

$$ (2 of 140, 2023)

Statutory Leave

20 days

Sick Leave

730 days in a 900 day period (paid up to 80% of wage)

Maternity Leave

14 - 16 weeks

Important: Risks of misclassification

In many countries like

Switzerland

, the treatment of employees and contractors is different. If you misclassify a new team member, you could be subjected to penalties and fines. Let Borderless get this right for you, so you don’t have to worry.

Payment Information

Minimum Wage

Switzerland does not have a minimum wage, however, a few cantons have their own laws regarding this.

Collective bargaining agreements are used within industries to ensure fair compensation.

Overtime Pay

Overtime pay is not mandatory but may be included in the salary, depending on what's agreed in the employment contract. Employees can work a maximum of 45-50 hours of overtime. For additional hours, employees can be
paid:

125% of the hourly rate, up to 45 hours per week for industrial sector employees, office workers, technical employees, and sales staff
125% of the hourly rate, up to 50 hours per week for other sectors

Additional Pay

Payroll Cycle

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

Employer Costs & Taxes

5.3%: Old age, survivors’ and disability insurance
1.1%: Unemployment Insurance
1 - 3%: Family Compensation Fund
0.17 - 13.5%: Occupational accident insurance

Employee Costs & Taxes

Taxes for single employees:

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

Taxes for married couples and single employees 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

Employment Information

Termination Process

Terminations in Switzerland can be complex and depend on the contract terms and what's agreed on between the parties.

Notice period

The minimum notice period is 30 days and will be increased according to the length of the employment.

30 days if the length of service is one year
60 days if the length of service is between the second and the ninth year
90 days if the length of service is more than ten years

Probation Period

Probation periods are mandatory for indefinite term contracts. The maximum probation period is 90 days (3 months).

Severance Details

No statutory requirements for severance payments for employees under 50 or who have more than 20 years of seniority.

Switzerland

Hiring in

Switzerland

isn't so simple. Borderless can help.

Important: Risks of misclassification

Payment Information

Minimum Wage

Overtime Pay

Additional Pay

Payroll Cycle

Employer Costs & Taxes

Employee Costs & Taxes

Employment Information

Termination Process

Notice period

Probation Period

Severance Details

Borderless Benefits Packages in

Switzerland

Learn how to hire quickly and easily in

Switzerland