Hire in Switzerland

Employer of Record(EOR) in Switzerland

Switzerland Workforce Unlocked: How Employer of Record Makes Hiring Easy

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At a Glance

Capital City
ChaadHR entity
German (Swiss-German), Romansh, French, Italian


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$599.00 / month
Hire contractors
$49.00 / month


Switzerland holds the name for one of the world's most advanced and highly-developed free-market economies. The service sector, along with tourism, are the major contributors to the economic growth of the country. Switzerland holds the 18th rank for Nominal GDP.

Major Economic Hubs:

Zurich, Bern, Geneva, Basel, Grindelwald

Skills in Demand :

Engineers, Skilled Technicians, Software Developers, And Other IT Professions, Mechanic And Welders

Public and Provincial Holidays

Employee Leaves


Resident Tax Information

Switzerland's taxation system is one of the most comprehensive in Europe. This means that all residents and nonresidents are taxed on their wealth as well as worldwide income, which makes it important for employers to ensure they're withholding relevant employee tax from staff paychecks during payroll processing time frames each month or year.

The tax brackets for all income derived in Switzerland for single taxpayers include —

The tax brackets for all income derived in Switzerland for married taxpayers with minor

children include —

Social Security

In Switzerland, social security contributions are a requirement for every worker. That's why employers must outline these payments in the contract they sign with their employees and it can't be changed without consent from both parties.

The benefits provided by the social security include —

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

The contributions toward each of the funds in social security include —

The employer must deduct the social security contributions from the employee’s monthly compensation as a part of the payroll process.

Statutory Benefits

Pillar I – Social Security

Social security provides a wide range of benefits that include

  • Survivors pension (AHV)
  • Old-age pension
  • Disability pension

The employer must contribute to social security for their employees at a rate of 10.60%.

Pillar II - Occupational Benefits

Occupational benefits include

  • Mandatory pension plan (BVG) and
  • Employer-sponsored pension coverage

The contributions include

  • The employer must contribute a minimum of 50% of the total contributions made by both parties.
  • Savings contributions vary between 7% to 18% depending on the employee's age.

All voluntary benefits provided by the employer are also covered under Pillar II.

Pillar III – Voluntary Benefits Provision

Pillar III covers all voluntary retirement individual contributions.

  • Switzerland's working hours are between 40 and 50, but it is important to note that they must be contractually agreed upon.

For any additional hours worked by an employee, the employers must

  • pay overtime at 125% of the employee's gross salary or
  • Time off in place of payment

Employers must provide all employees in Switzerland with statutory leaves.

Fringe Benefits

Fringe benefits are commonly provided in addition to the employee’s remuneration and statutory benefits. The most common fringe benefits provided by employers in Switzerland include —

  • Meals at the  workplace or meal  vouchers
  • Flexible work  arrangements
  • Additional paid
 time off
  • Company equipment  such as mobile  phones and/or  laptops
  • Expenses for  business travel
  • Office vehicle to commute  to and back from work or  commuting budget
  • Business trips

Exempt Benefits

There are many benefits that come with employment, but some of them may or may not be taxable.

Such exempt benefits include —

  • Social security contributions
  • Commuting costs
  • Meals at the workplace (lump sum amount is exempt)
  • General business-related expenses
  • Costs that relate to further education

Residents, permanent residents, and expats can claim deduction on the exempt benefits

provided by the employer.

Long-term Incentives

There are many different types of incentive plans that companies can offer their employees. One type, the long-term incentive plan (LTIP) has an even longer time horizon than twelve months and provides greater rewards for key workers in order to keep them engaged with your company over this period so it's important not only rethink how you give out bonuses but also when.

Commonly provided long-term incentives in Switzerland include –

  • Private pension plans
  • Group life insurance
  • Health insurance covers with additional dental covers
  • A few employers provide employee stock options to key employers

Termination/Severance in Switzerland

Termination Process

Switzerland practices the principle of freedom when choosing to terminate an employment contract. This means either party can terminate the contract - either on the grounds of statutory or notice period.

Notice Period

The notice period for termination for probationary employees ranges from 1 - 7 days and 1 - 3 months for regular employees.

Severance Pay

There is no statutory provision for severance pay in Switzerland. However, an exception is specified for employees over 50 years old who have worked for the same company for 20 years. According to the Code of Obligations, they are entitled to 2 months worth of salary as severance pay.

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