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Good to know
Switzerland offers an excellent quality of life, with a high standard of healthcare, education, and overall well-being, which can attract and retain top talent.
Currency
Swiss Franc (CHF)
Capital
Bern
Employee Costs
10.90%
Local Language
German, French, Italian
Employer Taxes
10%
Public Holidays
9 – 15 Days
Payroll Frequency
Monthly
Tax Year
1st Jan – 31st Dec
Are you ready to hire in Switzerland?
Switzerland is a global financial hub, offering various financial services, which can benefit businesses and employees alike.
While Switzerland has a well-regulated tax system, there are favorable tax regimes in place, depending on the specific location within the country. This can benefit both businesses and employees.
Additionally, Swiss citizens are multilingual, making it easier to communicate with a diverse, global workforce. This makes Switzerland an attractive place to hire your next employee.
Want to know more?
Call us today at: +44 (0) 333 034 1068
Minimum Wage
The minimum wage in Switzerland is EUR 20.96 an hour.
Working Hours
Standard Working Hours
In Switzerland, the standard working hours are 45 hours and cannot exceed 50 hours per week. The standard work week is Monday – Friday.
Overtime
Additional work carried out beyond the established standard working hours is classified as overtime and must be compensated at a rate of 125% of the employee’s regular salary.
Alternatively, the option exists to provide the employee with extra time off in exchange for their overtime efforts. The maximum allowable overtime is capped at 2 hours per day or 170 hours annually.
Payroll
In Switzerland, it is customary for employees to receive their wages on a monthly basis, typically disbursed on the 25th of each month.
Leave
Paid time off
In Switzerland, employees are entitled to a minimum of 4 weeks of paid annual leave, and this extends to 5 weeks for individuals under the age of 20. Futhermore, numerous collective bargaining agreements offer additional annual leave allowances.
Sick Pay
In an employee’s initial year of service, it is customary for employers to be responsible for providing sick pay for a maximum duration of 3 weeks. Many employers opt to secure sickness benefits insurance to handle compensation for unwell employees. Subsequently, the duration of sick leave is contingent on regional regulations.
It is standard procedure to request a medical certificate from employees if their illness-related absence from work is more than 3 days.
Maternity Leave
The legally mandated maternity leave in Switzerland consists of 98 days, equivalent to 14 weeks.
However, depending on cantonal law or collective agreements, maternity leave may extend further, such as 16 weeks in Geneva. Throughout this period, the employee is entitled to maternity benefits, which equal 80% of her regular salary, with a maximum daily limit of CHF 196.
Paternity Leave
The father is entitled to receive 2 weeks within the first 6 months of the birth of their child. Paternity salary benefits are similar to maternity benefits.
Termination
Termination of Employment
Termination of employment in Switzerland requires proper justification. For example, staff reduction or redundancy, breach of contract, employees underperformance or gross misconduct. The employer needs to abide by the appropriate notice periods.
Notice Period
When terminating the employment contract, if the employee’s length of service is during the probation period the notice period is 7 days. If the employee has served with an employer for a year this requires 1 month notice period, which can extend to 3 months up to 9 years of service.
Probation Period
The length of the probationary period can vary depending on the industry, the job position, and the company’s policies. It is common for probationary periods be between 1-3 months but cannot exceed 3 months in total.
Visa
In Switzerland, there are two avenues for acquiring a residence permit that authorizes work in the country:
1. For citizens of EU member states or the European Free Trade Association (who can enter Switzerland for 3-6 months while job hunting):
– L (short-term resident): This permit is applicable for 3-12 months and requires a valid employment contract.
– B (resident foreign nationals): This permit is designed for foreign nationals with valid employment contracts lasting a minimum of 12 months. It can be valid for up to 5 years, with automatic extensions if the employment duration is prolonged.
– C (settled foreign nationals): This permit becomes indefinite after residing continuously in Switzerland for 5 uninterrupted years.
– G (cross-border nationals): Intended for individuals who work in Switzerland but reside in another country. Cross-border commuters are required to return home at least once a week.
VAT
The standard rate of VAT in Switzerland is 7.70%.
