Your Guide to Hiring Employees and Contractors in Switzerland
Capital city
Bern
Currency
Swiss franc (Fr, CHF)
Language(s)
German (Swiss-German), Romansh, French, Italian
Ease of doing business
Easy
Payroll frequency
Monthly
Employer taxes
7.7%
Payroll
Payroll Cycle
All employee payments will be made in equal monthly installments on or before the last working day of each calendar month.
Minimum Wage Requirements
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.
Individual Income Tax
Federal taxes for single filers
Up to CHF 14,500
Tax rate: Exempt
Between CHF 14,500 – 31,600
Tax rate: 0.77%
Between CHF 31,600 – 41,400
Tax rate: 0.88%
Between CHF 41,400 – 55,200
Tax rate: 2.64%
Between CHF 55,200 – 72,500
Tax rate: 2.97%
Between CHF 72,500 – 78,100
Tax rate: 5.94%
Between CHF 78,100 – 103,600
Tax rate: 6.6%
Between CHF 103,600 – 134,600
Tax rate: 8.8%
Between CHF 134,600 – 176,000
Tax rate: 11%
Between CHF 176,000 – 755,200
Tax rate: 13.2%
Above CHF 755,200
Tax rate: 11.5%
Federal taxes for married couples and single filers with children
Up to CHF 28,300
Tax rate: Exempt
Between CHF 28,300 – 50,900
Tax rate: 1%
Between CHF 50,900 – 58,400
Tax rate: 2%
Between CHF 58,400 – 75,300
Tax rate: 3%
Between CHF 75,300 – 90,300
Tax rate: 4%
Between CHF 90,300 – 103,400
Tax rate: 5%
Between CHF 103,400 – 114,700
Tax rate: 6%
Between CHF 114,700 – 124,200
Tax rate: 7%
Between CHF 124,200 – 131,700
Tax rate: 8%
Between CHF 131,700 – 137,300
Tax rate: 9%
Between CHF 137,300 – 141,200
Tax rate: 10%
Between CHF 141,200 – 143,100
Tax rate: 11%
Between CHF 143,100 – 145,000
Tax rate: 12%
Between CHF 145,000 – 895,900
Tax rate: 13%
Above CHF 895,900
Tax rate: 11.5%
Between CHF 145,000 – 895,900
Tax rate: 13%
Note that the total income tax a Swiss employee income incurs may change based on the relevant canton’s individual income tax regulations.
Employer Cost
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
Working Hours
Work Week
Monday to Friday.
Overtime Pay & Maximum Hours
Standard working hours are 8 hours per day, 40 hours per week. The standard workweek is from Monday to Friday. The standard workweek can vary from 38.5 to 42.5 hours.
Overtime payment is not mandatory and 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.
Employment Termination
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.
Probation periods
Probationary periods in Switzerland usually last from one to three months.