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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.

These details are subject to change by the respective government and regulatory authorities in each country.

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