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Hire employees in Switzerland. No entity needed.
Usually, to hire in Switzerland, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.
Switzerland also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in Switzerland quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.
All the necessary benefits for Switzerland
built right in
Deel allows you to provide localized benefits for employees in Switzerland within minutes. All in one manageable online dashboard.
- Daily Sickness Benefits Insurance
- Pension Fund
- Work Accident Insurance
- Additional accident insurance
Our quickstart guide to hiring in Switzerland
Navigate the tabs below to learn everything you need to know about hiring an employee in Switzerland
Minimum Wage Requirements
In Switzerland, there is no national minimum wage by law. However, the minimum wage for a fulltime employee established by the Collective Bargaining Agreement is CHF 57,460 gross a year. Some cantons apply minimum hourly wages:
- Canton of Neuchâtel - CHF 20.77
- Canton of Jura - CHF 20.60
- Canton of Geneva - CHF 24
- Canton of Ticino - CHF 19
- Canton of Basel Stadt - CHF 21
Individual Income Tax
The individual income tax ranges from 1% to 24%. Income tax is calculated according to progressive rates, location (canton) of the employee. Multiple additional factors may impact overall rates such as the household status and the number of children.
The employer cost is generally estimated between 10-20% of the employee salary. The variation will depend on the canton, age, salary, and multiple conditions.
- Retirement Capital and Disability insurance - 5.3%
- Unemployment insurance - 1.1%
- Pension fund - estimated 8%
- Accident Insurance:
- 0.1204% +
- 0.1075% +
- 0.1340% for employees earning more than CHF 12,350 only
- Sickness Insurance - 0.64%
- Family fund - 1.6%
- Compensation fund admin fee - 0.011%
- CBA affiliation cost - 0.3% for employees earning less than CHF 12,350 only
- WFH Allowance - CHF 150 (pro-rated for part-time employees)
Please note: most employer costs have limits and maximum salaries for the calculations, so percentages may vary. The exact pension fund contribution will be calculated based on the employee’s information.
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.
Pregnant employees who have worked for 270 consecutive days are entitled to 14 weeks (16 weeks in the Canton of Geneva) of paid leave. Eight weeks must be taken after the child's birth. The employee will receive 80% of the salary during this period, capped at CHF 196 per day, and Social Security will be responsible for this pay. The employee can extend leave additional 14 days unpaid.
For Deel EOR employees, the full salary continues to be paid.
Employees who have worked for 270 consecutive days are entitled to 10 working days of paid paternity leave. Leave must be taken within six months after the child's birth. The employee will receive 80% of the salary during this period, capped at CHF 196 per day, and Social Security will be responsible for this pay.
The employee can request to extend leave, and it will depend on the employer's discretion.
For Deel EOR employees, the full salary continues to be paid.
In Switzerland, no law covers parental leave. However, employees may be entitled to maternity leave and paternity leave.
Employees are entitled to paid sick leave for up to 730 days in a 900 day period. Sick leave in Switzerland is managed in 2 ways.
The employer has sickness daily benefit insurance:
0-30 days: paid at 100% of the employee's regular salary by the employer
31-730 days: paid at 100% of their regular salary, 80% by insurance and 20% by the employer.
The employer does not have sickness daily benefit insurance:
Paid at 100% of the employee's regular salary, with limits on sick leave entitlement depending on how long the employee has been working at the company.
1st year of employment: 3 weeks
2nd year of employment: 1 month
3rd and 4th year of employment: 2 months
5th - 9th year of employment: 3 months
10+ years of employmentL 4 months
Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.
Terminations in Switzerland can be complex and depend on the contract terms and what's agreed on between the parties.
Compliant terminations include:
- Voluntarily by the employee
- By mutual agreement
- Unilaterally by the employer based on:
- Probation period
- Objective grounds
- Disciplinary dismissal
- Performance of the employee
- By the expiration of the contract
Uncompliant terminations include:
- Fixed-term employment contracts before the end date.
- Termination while the employee is ill or had an accident, they will be protected according to the length of the service:
- 30 days during the first year of service
- 90 days from the second to the fifth year
- 180 days from the sixth year
The employer must wait until the employee returns to work before leaving in all these cases. However, the employee can terminate their contract during the protection 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.
During the probation, the notice is seven calendar days.
Severance for Employees
In Switzerland, there are no statutory requirements for severance payments for employees under 50 or who have more than 20 years of seniority. During the notice period, the employee will receive standard salary wages.
Paid Time Off
Employees under the age of 20 or over the age of 50 are entitled to 25 days of vacation a year as established by the Collective Bargaining Agreement.
In Switzerland, there are 3 nationwide public holidays:
- National Day: August 1
- Ascension Day
- Christmas Day: December 25
There are an additional 6-8 regional holidays that vary by canton.
Onboarding takes 3 business days.
Employment Contract Details
Contracts must be in writing and signed by both parties.
A contract must include:
- Start date
- Length of the employment
- Job description
- Termination conditions
- Benefits insurance
Hiring in Switzerland, hassle-free
With Deel, your business can easily hire employees in Switzerland. No more worrying about local laws, complex tax systems, or managing
international payroll. Deel takes care of everything in 150+ countries.
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