Switzerland

Switzerland

Global Employment Solutions & PEO in Switzerland

Omnipresent makes it fast and easy to employ remote talent in Switzerland. We take care of payroll, compliance, taxes, and admin so you can focus on growing your business.

OmniAtlas Employment Rating

Capital City
Bern
Currency
Swiss Franc (CHF)
Native Language
Romansh, German, French, Italian
Payroll Frequency
Employee Protections
Moderate
Employment Costs
High
Termination
Easy
Immigration
Easy
Cost of Living
High
Population
8.57 Million

What You Need to Know About Employing in Switzerland


Don’t risk non-compliance with local employment, social insurance, and tax regulations.


How it works
Payroll & Taxes
Employer Costs
Working Hours
Holidays & Vacation
Types of Leave
Health & Benefits
Termination Laws
Switzerland

How Do Omnipresent Global Employment Solutions Work?


Omnipresent provides global employment solutions and professional employment organisation (PEO) services for companies looking to grow and build out a global team in Switzerland. Traditional methods of establishing global employment and subsidiaries in Switzerland typically takes months and can incur heavy costs. Omnipresent’s global employment solutions and PEO services is helping hundreds of organisations onboard new employees in Switzerland in a matter of days with full compliance of local labour laws. We use a tech-forward approach to streamline the process. 

  • Your company conducts the hiring and candidate selection process in Switzerland.
  • Omnipresent hires the selected candidate through our local professional employment organisation in Switzerland
  • We take care of ensuring your new employee is hired in compliance with local labour laws, payroll regulations, benefits and more -- all without needing to set up a subsidiary in Switzerland.
  • The individual is legally contracted by Omnipresent but assigned to work for your company and reports to a manager or team in your organisation as your full-time employee.

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Payroll & Taxes in Switzerland


Employee Income Taxes:

Taxes are both federal and regional (by canton, and within each canton it varies by commune). They vary with income levels and depending on whether you are single or married and your religion.

Employee Income Tax (Federal Income Tax, dependent on whether the individual is married or has children):


Single Employee

0.77%: 14,500 – 31,600 CHF 

0.88%: 31,600 – 41,400 CHF

2.64%: 41,400 – 55,200 CHF

2.97%: 55,200 – 72,500 CHF    

5.94%: 72,500 – 78,100 CHF

6.6%: 78,100 – 103,600 CHF

8.8%: 103,600 – 134,600 CHF

11%: 134,600 – 176,000 CHF

13.2%: 176,000 – 755,200 CHF

11.5%: 755,200+ CHF 


Married and/or with Children

0%: 0 – 28,300 CHF

1: 28,300 – 50,900 CHF

2: 50,900 – 58,400 CHF

3%: 58,400 – 75,300 CHF

4%: 75,300 – 90,300 CHF

5%: 90,300 – 103,400 CHF

6%: 103,400 – 114,700 CHF

7%: 114,700 – 124,200 CHF

8%: 124,200 – 131,700 CHF

9%: 131,700 – 137,300 CHF

10%: 137,300 – 141,200 CHF

11%: 141,200 – 143,100 CHF

12%: 143,100 – 145,000 CHF

13%: 145,000 – 895,900 CHF

11.5%: 895,900+


Payroll Cycle:

Monthly


Switzerland

Employer Costs in Switzerland


Employer Contributions:

  • OASI / AHV (Retirement Fund): 4.35%
  • IV (Disability Fund): 0.70%
  • LEC (EO - Military / Motherhood Fund):  0.25%
  • ALV (Unemployment) on (<CHF 148,200) +: 1.1%
  • ALV (Unemployment) on (>CHF 148,200): 0.5%
  • BVG (retirement & disability): Depends on insurance and regulations
  • FAK (contributions for family allowance): Depends on the cantonal family allowance compensation fund (approx. 0.7-3.5%).


Employee Contributions:

  • OASI / AHV (Retirement Fund): 4.35%
  • IV (Disability Fund): 0.70%
  • LEC (EO - Military / Motherhood Fund): 0.25%
  • ALV (Unemployment) on (<CHF 148,200) +: 1.1%
  • ALV (Unemployment) on (>CHF 148,200): 0.5%
  • BVG (retirement & disability): Depends on insurance and regulations.

Switzerland

Standard Working Hours in Switzerland


Typical Working Hours per Week:

The standard for working hours per week is 40-42 hours. The maximum working hours are 45 - 50 hours per week depending on the industry.

It’s important to note that typical working hours can vary by industry in some countries. Contact our team for the most up-to-date information!


Overtime Laws:

Overtime work is compensated with a 25% premium unless otherwise agreed in writing. The maximum for overtime is 60 extra hours for office workers. An employee can waive their right to overtime pay in writing. 

Please contact our team if you have any questions about overtime in Switzerland. We are happy to discuss unique situations in more detail.

Switzerland

Public Holidays & Vacation Time in Switzerland


Standard Public Holidays in Switzerland

Public holidays vary canton by canton.

  • New Year’s Day
  • Good Friday
  • Easter Monday
  • Ascension Day
  • Whit Monday
  • Swiss National Day
  • Christmas Day
  • St. Stephen’s Day


Vacation Time in Switzerland

Employees over 20 years old are entitled to 4 weeks of vacation. Employees under 20 years old are entitled to 5 weeks of vacation.


Switzerland

Types of Leave in Switzerland


Sick Leave:

The total sick pay entitlement depends on canton and length of service:

  • Employees with less than 12 months of service are entitled to 3 weeks of sick leave. 
  • Employees with 12-24 months of service are entitled to 4-8 weeks of sick leave.
  • Employees with 36-48 months of service are entitled to 8-9 weeks of sick leave.
  • Allotted sick leave increases annually to a maximum of 6-12 months.

Employers are entitled to ask for a doctor’s certificate for an absence of more than 3 consecutive days unless otherwise agreed to in writing.

Maternity Leave:

To be eligible, the mother must have made 9 months AVS contributions before birth and have been gainfully employed for at least 5 months during this period.

  • 14 weeks of maternity leave at 80% pay (CHF 196 cap)
  • 16 weeks of maternity leave at 80% pay (CHF 196 cap) in Geneva only.


Paternity Leave:

Employees are entitled to 10 days of paternity leave at 80% Pay (CHF 196 cap). The eligibility is the same as for maternity leave, and it must be taken within six months of the baby’s birth.

Cantonal provisions, staff regulations and collective labour agreements apply if they provide for more generous benefits.



Switzerland

Health Insurance & Supplementary Benefits in Switzerland


The Swiss social security system provides benefits in five areas:

  • Old age, survivors and disability
  • Health
  • Illness and accidents (work-related and non-work-related)
  • Maternity and military services leave
  • Unemployment and family allowances


The following benefits are also mandatory on top of social security:

  • Health Insurance
  • Retirement Benefits
  • Survivor Benefits
  • Disability Insurance


Unlike other European countries, the Swiss healthcare system is not tax-based or financed by employers. Instead, it is paid for by the individual through contributions to Swiss health insurance schemes. Both residents and non-residents will need at least basic health insurance coverage. This covers around 80-90% of healthcare costs.


Switzerland

Termination in Switzerland


There are a range of reasons that an employer can use to terminate an employee in Switzerland, which depend on the specific circumstances and can be very complex. If you would like to know more specific details, please contact us.


Severance:

Employees are not entitled to severance unless they have over 50 and 20+ years of service; however, it does not always apply because the employer’s pension contributions, which are usually higher, may be deducted from severance.


Notice of Termination:

Notice of termination depends on how long the employee has served:

  • 7 days for an employee on probation or having worked less than one month
  • 1 month for an employee with less than 1 year of service
  • 2 months for an employee with 2-9 years of service
  • 3 months for an employee with 10+ years of service

Termination is only valid on receipt of notice so a notice by hand (with confirmation of receipt) or registered mail is recommended. Pay in lieu of notice is only possible by entering into a mutual settlement agreement. 


Unprotected & Protected Termination

Swiss law protects employees from illegal termination of employment and because there are a range of reasons an employee can be terminated, it is important for those looking to employ in Switzerland reach out to us directly with questions.

Switzerland

Grow your global team. 

Employ the best talent, anywhere in the world.


The benefits of growing a global team and finding the best talent anywhere in the world are endless. It’s important to note that labour laws and regulations in Switzerland are strict with penalties for non-compliance. Let our team take care of global employment solutions such as payroll, benefits, compliance, taxes, and admin so you can focus on growing your business. We are here to help you every step of the way.


Want to onboard an international employee today? Call us.

Join thousands of companies who are leading the way and employing remote teams all over the world.

Omnipresent makes it easy to employ, pay and support your international team.

Book a call with us to start building your global team today.

Employ Anywhere. Be Omnipresent.  

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