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12 min read

How to Hire Using an Employer of Record in Switzerland (2025)

Employer of record

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Author

Jemima Owen-Jones

Last Update

July 01, 2025

Table of Contents

What is a Switzerland Employer of Record (EOR)?

Top reasons to use an Employer of Record in Switzerland

Guide to hiring employees in Switzerland: Step-by-step

Employment compliance tasks managed by an Employer of Record in Switzerland

How much does it cost to hire through an Employer of Record in Switzerland?

Which Switzerland EOR should you choose?

Is Deel Employer of Record a strong choice for hiring in Switzerland?

Hire employees in Switzerland confidently with Deel Employer of Record

Key takeaways
  1. Setting up a Switzerland entity to hire local talent can take months and cost over CHF 128,091 in initial legal, tax, and payroll setup.
  2. A Swiss Employer of Record lets you engage talent through its local entity, bypassing setup delays, legal costs, and compliance headaches.
  3. Deel EOR owns its Swiss entity for full control, supports hiring in Switzerland and 150+ other countries, offers transparent pricing, monitors compliance in real time, and has top G2 ratings.

Switzerland continues to attract top-tier talent in biotech, fintech, and advanced engineering. With its political stability, robust currency, and multilingual workforce, it’s no surprise that global businesses are eager to hire employees in Switzerland.

However, navigating Swiss employment compliance, including canton-specific minimum wage laws, complex tax and social security contributions, and strict data protection requirements, can be daunting. Setting up a local entity, like a Swiss GmbH, is costly and time-consuming.

An Employer of Record (EOR) solution is a strategic way to simplify hiring in Switzerland. By acting as the legal employer, an EOR such as Deel EOR ensures compliance with all legal requirements, manages payroll and employee benefits, and dramatically reduces onboarding time.

Deel EOR’s own Swiss entity, real-time compliance monitoring, and transparent pricing allow you to access talent in Switzerland without bureaucratic delays.

See also: What’s the Fastest Way to Enter Markets and Hire Globally?

What is a Switzerland Employer of Record (EOR)?

A Swiss Employer of Record is a compliant, locally registered company authorized to hire staff on your behalf. While you manage the job description, performance, and day-to-day direction, the EOR acts as the legal employer, handling all statutory obligations:

  • Drafts and signs Swiss employment contracts
  • Registers employees for AHV/IV/EO (old-age, disability, loss-of-earnings insurance)
  • Withholds and remits all payroll taxes and social-security contributions
  • Issues compliant payslips per the Swiss Code of Obligations
  • Files pension contributions to the second-pillar fund
  • Manages compliant terminations, ensuring legal requirements are met

In essence, the EOR sits between your company and Swiss regulators, absorbing employment risk and freeing you to focus on growth. Deel, for example, offers AI-driven compensation benchmarking, real-time compliance alerts, and Deel IP Guard to protect intellectual property under Swiss law.

See also: Employer of Record (EOR): A Complete Guide

Deel Employer of Record
Hire employees globally with the #1 Employer of Record
Deel provides safe and secure EOR services in 100+ countries. We’ll quickly hire and onboard employees on your behalf—with payroll, tax, and compliance solutions built into the same, all-in-one platform.

Top reasons to use an Employer of Record in Switzerland

Choosing an EOR in Switzerland offers distinct advantages for international employers:

  • Avoid entity incorporation delays: Setting up a Swiss AG or GmbH demands CHF 100,000 in share capital, notary/legal fees, and months of waiting. An EOR lets you hire employees in Switzerland within days, not months
  • Master social-security complexity: Swiss employers face tax and social security contributions of 12–13% for AHV/IV/EO/ALV, plus additional accident insurance. Deel’s payroll engine handles every detail, ensuring accurate withholdings
  • Navigate canton-specific wage rules: Minimum wage laws vary by canton (e.g., Geneva CHF 24/hour). Your EOR tracks legal requirements across Switzerland, ensuring compliance with minimum wage and annual leave standards
  • Mitigate misclassification risk: Recent court rulings strengthened tests distinguishing contractors from employees. An EOR solution ensures all workers are classified as employees, reducing the risk of penalties
  • Protect data & IP: Swiss data protection laws require explicit consent for sensitive data transfers. Deel’s SOC2-certified platform and Swiss data residency options keep your records compliant
  • Predictable budgeting: With a flat monthly EOR fee, there are no surprise costs for payroll software, audits, or benefits administration

Choosing Deel was easy—they offer unmatched compliance and HR support that scales with fast-growing companies like ours. They’ve been the best partner for executing our global hiring strategy.

Yunjung (Rina) Bae,

Director of People, MarqVision

Guide to hiring employees in Switzerland: Step-by-step

Follow this checklist to hire talent in Switzerland efficiently using an Employer of Record:

1. Choose an EOR with a wholly-owned Switzerland entity

Select a provider that hires via its own AG or GmbH, not through third-party partners. Direct ownership enables faster onboarding and clear liability transfer. Deel’s Zurich-based entity fulfills this critical legal requirement.

Tip: Confirm the EOR’s Swiss entity by requesting its UID (Unternehmens-Identifikationsnummer), verifiable in the Zefix register.

2. Book a demo and verify social proof

Request a product demo to review employment contracts, payroll benefits, and compliance workflows. Check G2, TrustRadius, and Swiss-specific customer case studies.

Tip: During the demo, ask for a preview of Deel Compliance Hub for real-time compliance reminders on AHV filings.

3. Request a transparent EOR quote

A reliable EOR quote should itemize gross salary, all tax and social security contributions, pension brackets, and the EOR fee.

Tip: Compare costs before you expand—read our article EOR vs. Entity Costs: What’s More Affordable?

4. Submit a 12–24-month hiring plan

Share your projected hiring needs. This helps the EOR negotiate better pension and insurance rates, reducing overall payroll taxes.

Tip: Upload your headcount plan into Deel Workforce Planning to simulate expenses.

5. Create the employment contract on the platform

Use the EOR’s platform to generate compliant Swiss employment contracts. Deel’s contract builder includes mandatory clauses for job description, salary in CHF, working hours, annual leave, and notice period.

Tip: Select bilingual (French/German) contracts to speed up canton labor approvals.

6. Confirm the candidate’s right to work

Swiss nationals and EU/EFTA citizens generally need only a residence permit. Third-country nationals require a work permit, which Deel Immigration can source.

Tip: Run background, work authorization, and work permit eligibility checks at the offer stage to verify education, a Swiss hiring best practice.

7. Run the onboarding workflow

Upon contract signature, the EOR completes all necessary registrations with AHV and insurance providers. Employees can input bank and tax details directly, streamlining onboarding and benefits administration.

Tip: Use Deel Engage to roll out training and performance goals, and Deel IT to provision equipment.

8. Maintain ongoing compliance

Swiss labor and tax laws update annually. Deel Compliance Hub monitors regulation changes, ensuring your payroll and records remain compliant.

Tip: Subscribe to Deel’s compliance newsletter to receive clear and concise summaries of relevant compliance changes.

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See how easy it is to add and configure a brand-new employee contract through the Employer of Record service. Click to launch a platform demo.

Employment compliance tasks managed by an Employer of Record in Switzerland

An EOR in Switzerland takes over these critical compliance tasks for you:

Category Key Requirements (2025)
Statutory Employer Costs Statutory employer costs in Switzerland range from 10% to 21% of salary. Social security contributions include Retirement and Disability Insurance at 5.3%, Unemployment Insurance at 1.1% (capped at CHF 12,350 monthly salary), Family Fund contributions at 1.6%, and a Compensation Fund admin fee of 0.011%. Along with pension fund contributions (around 8%), sickness insurance (0.64%), and accident insurance costs, these mandatory expenses comprise the total employer burden. Variations in total costs arise from salary caps and differences based on employee age and salary level.
Employment Contracts & Probation Swiss employment contracts must include start date, job description, salary, benefits, termination terms, and reference the CBA on Staff Leasing. Indefinite contracts are preferred, but fixed-term contracts (min. 3 months) are allowed and supported. Repeated renewals risk reclassification. Probation is allowed with 2 days’ notice. Both parties must sign contracts and cannot be backdated. Non-compete and non-solicitation clauses are enforceable if reasonable. No compensation is required, but penalties must be proportionate.
Pay and Working Hours Employees covered by the Swiss Staffing Collective Bargaining Agreement must be paid a minimum monthly salary of CHF 4,660 as of January 2025, with annual inflation-linked increases. Salaries are split into 13 payments per year, with one-twelfth of the 13th-month salary paid monthly. The standard workweek is 40 hours Monday to Saturday, with 8 hours per day. Hours worked between 40 and 45 per week (overtime) are paid at 100% or compensated with time off. Hours beyond 45 per week or 9.5 per day (overtime) must be paid at 125% or compensated similarly. Employees earning over CHF 148,200 annually may agree to alternate terms by contract.
Payroll & PAYE Compliance Payroll is processed monthly, from the 1st to the last day, with payments made on the final calendar day. Payroll cut-off is the 20th of the month. Salaries include gross pay (base, bonuses, allowances) minus mandatory deductions, such as OASI (5.3%), unemployment insurance (1.1% up to CHF 12,350/month), accident insurance (0.73%), and pension contributions (varying by age, shared 50/50 with employer). A 13th salary is mandatory and paid in 12 monthly installments. Employees also contribute to sickness benefits, additional accident insurance, and CBA affiliation (0.4% for salaries up to CHF 148,200). Income tax is progressive and deducted at payroll for non-C/C-permit holders. Payslips detail all earnings (e.g., salary, allowances, commissions) and deductions (in local language and English), ensuring full transparency.
Vacation and Holidays Employees are entitled to 20 days of paid vacation annually, or 25 days if under 20 or over 50, accruing monthly from the start date. Full-time workers accrue 1.66–2.08 days per month, depending on age, and part-time accrual is pro-rated. The vacation year runs January–December. At least 10 consecutive vacation days must be taken each year. Unused vacation can roll over for up to five years, with unused days paid out at termination; negative balances are deducted from final pay. Switzerland mandates 4 national public holidays with 6–8 additional regional ones, none of which are moved if they fall on a weekend. Working on public holidays is prohibited and unpaid. National holidays include New Year’s Day, Ascension Day, National Day, and Christmas. Regional holidays must be logged as “Other Leave” and don’t count against vacation accrual.
Income Taxes Switzerland applies progressive income tax at federal, cantonal, and municipal levels on salary, bonuses, allowances (excluding work-from-home), and the 13th-month salary. Most employees have monthly tax withheld via pay-as-you-earn, while Swiss citizens, C-permit holders, or their spouses must file annual returns by varying cantonal deadlines, usually March 31. Tax-free thresholds vary by marital status and location. Employers provide a salary certificate by January 31 to support tax filing. Employees receive pre-filled returns and can file online, submitting salary, pension, bank, and investment documents.
Expenses, Allowances, and Bonuses Business expenses tied to work and properly documented are tax-free. Late approvals post-20th cutoff shift to the next payroll. Non-taxable expenses include phone, travel, office supplies, and mileage (CHF 0.75/km). Per diems are rare. A CHF 150 monthly work-from-home allowance is non-taxable and automatic. Other allowances (gym, medical, relocation) are taxable and need manual approval. Bonuses are taxed as regular income, often with higher withholding for non-residents.
Statutory Benefits & Pensions Mandatory benefits include health insurance (employee-chosen provider), unemployment insurance (1.1% employer cost, max CHF 12,350 salary), public pension (5.125% employer and employee), accident insurance (minimum 3% employer cost), additional accident insurance (0.1204%, max CHF 12,350), family fund contributions (1.6%), daily sickness benefits insurance (0.6395%, capped), and a mandatory private pension fund with contributions shared equally between employer and employee (1–24% based on age). A statutory CHF 150 monthly work-from-home allowance is also required. Optional benefits clients may offer include private health top-ups, meal allowances, wellness programs, relocation support, profit sharing, and various insurance coverages.
Parental Leave & Family Leaves Switzerland offers maternity leave (98 days, 116 in Geneva) paid at 100% salary, with 80% reimbursed by the government. Breastfeeding breaks are paid during the first year. Paternity leave provides two weeks paid at 100%, also reimbursed 80%. Childbirth leave grants one paid day off, or the next business day if on a weekend. Adoption leave isn’t mandatory nationally. Employees must submit leave requests and documents for approval. If employment ends before paternity leave is fully used, the notice period extends accordingly.
Sick Leave, Bereavement, and other leave types Swiss employees get 3 days paid bereavement leave for close family deaths and 1 day for extended family. Sick leave ranges from 21 to 730 days, with a doctor’s note after 3 days. With insurance, employers pay full salary for 30 days, then 80% reimbursed; without insurance, sick leave varies by tenure. Accident leave covers full pay after 3 days, mostly reimbursed. Wedding leave is 3 days paid, 1 day for children’s weddings. Moving leave is 1 paid day. Military leave is fully paid, with reimbursements. Military inspection leave is half a day paid. Legal obligation leave is paid as needed. Up to 3 days paid leave is allowed to care for a sick child per incident.
Terminations & Severance Terminations in Switzerland carry moderate litigation risk and generally require at least 30 days’ processing time, except for gross misconduct. Notice periods range from 7 days during probation to 1–3 months after, depending on tenure, and apply to full- and part-time roles. Payment in lieu of notice is not allowed, but garden leave is common. No severance is mandated, though benefits continue accruing through the notice period. Employers must cover notice pay, unused vacation, and pro-rated benefits. Formal warnings are required before termination for misconduct unless the breach is severe. Five compliant termination methods exist under Swiss law.
Misclassification Risk Switzerland has a high risk of worker misclassification due to strict courts and regulators enforcing employment law. Misclassification is seen as a serious violation with significant financial and legal consequences, including back wages, benefits, and social security liabilities. Swiss courts use criteria to determine employment status, focusing on employer control over work methods and hours, provision of equipment, granting holidays, probation periods, worker integration, obligation for personal service, work results, client base diversity, service under the employer’s name, and payment method. Workers meeting these criteria are classified as employees. Employers must carefully assess these factors to avoid costly disputes and legal actions.
Data & IP Protection The Swiss Federal Act on Data Protection (FADP), effective September 2023, governs how personal data is collected, processed, and protected in Switzerland, applying to both Swiss and foreign entities handling Swiss residents' data. Businesses must obtain consent, secure data against unauthorized access, and provide transparency about data use. Individuals have rights to access, correct, delete, and transfer their data. Non-compliance risks fines up to CHF 250,000, legal action, and reputational damage. Compliance requires clear privacy policies, cookie consent, and robust data security measures. Tools like WP Legal Pages and WP Cookie Consent help businesses meet these requirements efficiently. The FADP aligns Swiss law more closely with GDPR, broadening protections to sensitive data and expanding obligations to foreign companies.
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How much does it cost to hire through an Employer of Record in Switzerland?

Hiring employees in Switzerland involves three main cost components:

  1. Employee’s gross salary in CHF
  2. Statutory employer costs: Social security (7.5% to 8.5%), accident insurance (0.7% to 3%), pension (7–18%), and minor levies
  3. EOR management fee: A flat monthly amount covering payroll, filings, and benefits administration

Use Deel’s Employee Cost Calculator for instant, scenario-based cost projections.

Factor Your Own Switzerland Entity Deel EOR
One-off set-up (legal, notary, share capital) CHF 128,091 CHF 0
Annual, recurring costs (audit, payroll software) CHF 47,733 CHF 0
Deel EOR annual management fee CHF 0 CHF 5,740 per employee
Estimated total annual costs CHF 175,823 CHF 5,740
Time to hire 6-8 weeks 2 business day(s)

With Deel, you pay predictable, transparent fees—no hidden mark-ups when salaries rise. For precise budgeting, plug figures into Deel’s Employee Cost Calculator. This clarity is essential for companies planning market entry or scaling headcount in China.

Check our Employee Cost Calculator to see the full cost of hiring talent in China, including salary, taxes, pensions, and statutory fees.

Global Hiring Toolkit
EOR vs. Entity Calculator
Looking for the most cost-effective way to expand your team abroad? Discover the best option for your business with our calculator.

Which Switzerland EOR should you choose?

Apply these criteria to select the best EOR solution for hiring talent in Switzerland:

  1. Entity ownership: Prefer an EOR with its own Swiss AG/GmbH for clear liability and compliance.
  2. Compliance expertise: Look for in-house Swiss labor lawyers and real-time legal updates (e.g., Deel Compliance Hub).
  3. Platform breadth: Ensure the EOR covers equity grants, IT equipment, visas, and benefits administration.
  4. Global coverage: Choose an EOR with operations across 150+ countries for seamless international hiring.

See also: Owned Entity vs. In-Country Partner: The Best Choice for Global Hiring

Discover how Lloyd’s List Intelligence expanded to new markets with Deel

Lloyd's List Intelligence provides business intelligence, data, and analysis on maritime trade and operations.

As a leader in a complex and regulated market, they faced challenges in expanding and managing teams across multiple locations. They explored different ways to set up entities but found it complicated, as each country had its own payroll regulations and tax requirements.

“We just didn’t have the economies of scale, time, and resources to be able to set up entities in each of those different locations. We went with Deel because they were able to provide us with everything we needed in one platform.”

Hetty Townsend, APAC People And Culture Business Partner, Lloyd's List Intelligence

Learn more

Is Deel Employer of Record a strong choice for hiring in Switzerland?

Yes—Deel is a leading Employer of Record solution for hiring employees in Switzerland. Thanks to its wholly-owned Swiss entity, Deel lets you act quickly without the delays and costs of setting up a local company.

With Deel, you benefit from:

  • G2 leader: Top-rated for user satisfaction and market presence
  • Direct Swiss entity: No third-party partners, ensuring legal requirements are met fast
  • Global reach: Hire talent in Switzerland and over 150 countries
  • Transparent pricing: Flat monthly fee for payroll benefits, filings, and support
  • Rapid onboarding: Deploy employees in Switzerland in under 48 hours
  • Compliance monitoring: Real-time alerts for payroll taxes, social security, and legal updates
  • Swiss payroll expertise: Automated statutory withholdings for AHV/IV/EO/ALV, accident insurance, and pension
  • Compliant employment contracts: Custom contracts covering probation, notice, and 13th-month pay
  • Data & IP protection: Swiss nFADP-compliant, SOC2-certified, with robust IP assignment clauses
  • Mobility and visa support: Manage Swiss work permits and relocations

With Deel, you access Swiss talent efficiently and compliantly—without the headache of entity setup or the risk of non-compliance.

See also: More Than a Service: EOR as a Strategic Partner in Business Growth

Hire employees in Switzerland confidently with Deel Employer of Record

Ready to grow your Swiss team without the burden of establishing a local entity? Deel’s EOR platform enables you to onboard, pay, and manage employees in Switzerland within days, ensuring full compliance with Swiss labor, tax, and benefits administration laws.

Book a demo with Deel today to see how you can hire faster, avoid hidden fees, and benefit from transparent, predictable pricing. With Deel, payroll, employment contracts, and Swiss statutory requirements are managed end-to-end, so you can focus on growing your business.

With Deel’s Employer of Record solution, hiring and managing talent in Switzerland is simple, compliant, and cost-effective—so you can focus on your business, not bureaucracy.

FAQs

Most employees are onboarded in under 72 hours once documents are finalized.

No. Deel can pay to Swiss or international bank accounts, though local accounts may speed up payments.

Deel issues locally compliant Swiss employment contracts, covering job description, salary, benefits, and working hours.

Yes—Deel calculates and remits all payroll taxes and social security contributions required by Swiss law.

Payroll typically runs monthly, with salary and statutory deductions processed by the last working day.

Employee benefits include a minimum of 4 weeks of annual leave, paid sick leave, pension contributions, accident insurance, and optional extras like a 13th-month salary.

The default is one month, extendable up to three months if specified in the employment contract.

Does Deel support Swiss work permits and visas?

Deel’s platform is Swiss nFADP-compliant, with SOC2 certification and built-in IP assignment clauses.

Deel manages compliant terminations, ensuring all notice periods, severance, and legal requirements are fulfilled.

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About the author

Jemima is a nomadic writer, journalist, and digital marketer with a decade of experience crafting compelling B2B content for a global audience. She is a strong advocate for equal opportunities and is dedicated to shaping the future of work. At Deel, she specializes in thought-leadership content covering global mobility, cross-border compliance, and workplace culture topics.

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