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Expand your global workforce in Switzerland

Your guide to the employment landscape, working customs and local labor laws in Switzerland.

Capital

Bern

Currency

Swiss Franc (CHF)

Languages

German, French, Italian, Romansh

GDP per Capita

$103,245.72

Employer Tax

8.07% - 23.4%

Payroll Frequency

Monthly

Talent overview

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

Top local universities in Switzerland

Uni1 5

Eidgenössische Technische Hochschule Zürich – Swiss Federal Institute of Technology

RANKING

Local: 1

World : 52

Uni2 36

École Polytechnique Fédérale de Lausanne (Federal Institute of Technology Lausanne)

RANKING

Local: 2

World : 146

Uni3 5

University of Zurich

RANKING

Local: 3

World : 165

Uni4 4

University of Geneva

RANKING

Local: 4

World : 184

Uni5 5

University of Bern

RANKING

Local: 5

World : 225

Top Local Job Boards:

Experteer, Job.ch, Jobscout24

Number of LinkedIn users:

3,820,000

Multiplier Recruitment Partner:

iXceed

Where to find talent

Top Local Job Boards:

Number of LinkedIn users:

Top Recruitment Agencies:

Salary Data

The table below mentions the salary data of some job titles with average salaries in Switzerland:

Job Title Average Monthly Salary (CHF) Average Monthly Salary (USD)
Sales Manager 18,200 CHF 21,201 USD
Information Technology Manager 18,100 CHF 21,085 USD
General Manager 17,900 CHF 20,852 USD
Business Development Manager 17,500 CHF 20,386 USD
Business Analyst 12,700 CHF 14,794 USD
Project Manager 12,900 CHF 15,027 USD
Developer 9,460 CHF 11,020 USD

Employ in Switzerland

Employing in Switzerland

When onboarding an individual from Switzerland, the employer needs to have knowledge of the employment laws, benefits, and deductions. This section will cover much of that.

Employee Contract

According to Swiss laws, employment contracts, written or not, are mandatory. The contract must mention all the details about the employer along with terms and conditions. The employment contract in Switzerland must be written in one of the four official languages in the country (German, French, Italian, Romansh).

Probation Period

The probationary period for employees ranges from 1 – 3 months.

Public and Provincial Holidays

Date Holiday Cantons
January 2 St. Berchtold’s Day Aargau, Bern, Fribourg, Glarus, Jura, Lucerne, Obwalden, Schaffhausen, Thurgau, Vaud
January 6 Three Kings Day Lucerne, Schwyz, Ticino, Uri
March 1 Republic Day Neuchatel
March 19 St Joseph’s Day Lucerne, Nidwalden, Solothurn, Schwyz, Ticino, Uri, Valais
April 1 Easter Monday National except Neuchatel, Solothurn, Valais, Zug
April 4 Näfelser Fahrt Glarus
April 15 Sechseläuten Zurich
May 1 Labour Day Basel-Stadt, Zurich
May 1 May day Aargau, Basel-Land, Jura, Neuchatel, Schaffhausen, Solothurn, Thurgau, Ticino
May 19 Whitsun Bern
May 20 Whit Monday National except Neuchatel, Solothurn, Valais, Zug
May 30 Corpus Christi Aargau, Lucerne, Uri, Schwyz, Obwalden, Nidwalden, Zug, Fribourg, Solothurn, Appenzell Innerrhoden, Graubünden, Ticino, Valais, Jura
June 23 Juran Independence Day Jura
June 24 Solemnity Burgdorf Burgdorf (Bern)
June 28 – 30 Braderie Biel / Bienne (Bern)
June 29 Saint Peter and Saint Paul’s day Graubünden, Ticino
August 15 Assumption Day Aargau, Appenzell Innerrhoden, Fribourg, Jura, Lucerne, Nidwalden, Obwalden, St. Gallen, Solothurn, Schwyz, Ticino, Uri, Valais, Zug
September 5 Genfer Bettag Geneva
September 9 Knabenschiessen Zurich
September 15 Swiss Federal Fast Aargau, Appenzell Ausserrhoden, Appenzell Innerrhoden, Basel- Land, Fribourg, Glarus, Graubünden, Jura, Lucerne, Neuchatel, Nidwalden, Obwalden, St. Gallen, Schaffhausen, Solothurn, Schwyz, Thurgau, Ticino, Uri, Vaud, Valais, Zug
September 16 Bettagsmontag Geneva, Neuchatel, Vaud
September 22 St Mauritius’ Day Appenzell Innerrhoden
September 23 Thuner Ausschiesset Thun (Bern)
September 25 Saint Nicholas of Flüe Day Obwalden
November 1 All Saints’ Day Lucerne, Uri, Schwyz, Obwalden, Nidwalden, Glarus, Zug, Fribourg, Solothurn, Appenzell Innerrhoden, St. Gallen, Aargau, Valais
December 8 Immaculate Conception Aargau, Appenzell Innerrhoden, Fribourg, Graubünden, Nidwalden, Obwalden, Solothurn, Schwyz, Ticino, Uri, Vaud, Valais, Zug
December 24 Christmas Eve Glarus
December 26 St Stephen’s Day National except Geneva, Jura, Neuchatel, Solothurn, Valais, Vaud, Zug
December 31 New Year’s Eve Glarus
December 31 Refounding of the Republic of Geneva Geneva

Employee Leaves

Type of Leave Time Period Mandatory
Annual/Earned Leave 20 days Yes
Sick Leave 21 days Yes
Maternity Leave 14 weeks Yes

 

Leave Compliance

Payroll in

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Payroll cycle

The payroll cycle is Monthly in Switzerland.

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Minimum wage

The minimum wage varies per canton(district) and ranges from 19.00 CHF to 24 CHF.

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Overtime pay

The overtime must be compensated at a premium of 25% and must not exceed 2 hours a day.

How taxes work

Employer Payroll Tax

Category Fund Capital
Old age, survivors’ and disability insurance 5.30% No Cap
Unemployment Insurance 1.10% 148,200
Supplementary Unemployment Insurance 0.50% Above 148,200
Family Compensation Fund 1% – 3% No Cap
Occupational accident insurance 0.17% – 13.5% 148,200
Occupational pension scheme Depending on the pension plan, employer-specific No Cap

Employee Payroll Tax

Category Fund Capital
Old age, survivors’ and disability insurance 5.30% No Cap
Unemployment Insurance 1.10% 148,200
Supplementary Unemployment Insurance 0.50% Above 148,200
Non-occupational accident insurance 1% – 4% 148,200
Occupational pension scheme Depending on the pension plan, employer-specific No Cap
Medical insurance Depending on the coverage, private insurance No Cap

Employee Income Tax

For Single Direct Tax Payers

Annual Taxable Income Tax on Minimum Amount (CHF) Tax on excess (%)
0 to 14,800 CHF 0 0
14,800 to 32,200 CHF 0 0.77
32,200 to 42,200 CHF 133.95 0.88
42,200 to 56,200 CHF 221.95 2.64
56,200 to 73,900 CHF 591.55 2.97
73,900 to 79,600 CHF 1,117.20 5.94
79,600 to 105,500 CHF 1,455.75 6.60
105,500 to 137,200 CHF 3,165.15 8.80
137,200 to 179,400 CHF 5,954.75 11.00
179,400 to 769,600 CHF 10,596.75 13.20
Above 769,600 88,515.55 11.50

For Married/Single with Minor Children Direct Tax

Annual Taxable Income Tax on Minimum Amount (CHF) Tax on excess (%)
0 to 28,800 CHF 0 0
28,800 to 51,800 CHF 0 1%
51,800 to 59,400 CHF 230 2%
59,400 to 76,700 CHF 382 3%
76,700 to 92,000 CHF 901 4%
92,000 to 105,400 CHF 1,513 5%
105,400 to 116,900 CHF 2,183 6%
116,900  to 126,500 CHF 2,873 7%
126,500 to 134,200 CHF 3,545 8%
134,200 to 139,900 CHF 4,161 9%
139,900  to 143,800 CHF 4,674 10%
143,800 to 145,800 CHF 5,064 11%
145,800  to 147,700 CHF 5,284 12%
147,700 to 912,600 CHF 5,512 13%
912,600 CHF and Above 104,949 11.5%

For Single Zurich Cantonal tax

Annual Taxable Income Tax on Minimum Amount (CHF) Tax on excess (%)
0 to 6,700 CHF 0 0
6,700 to 11,400 CHF 0 2%
11,400 to 16,100 CHF 94 3%
16,100 to 23,700 CHF 235 4%
23,700 to 33,000 CHF 539 5%
33,000 to 43,700 CHF 1,004 6%
43,700 to 56,100 CHF 1,646 7%
56,100 to 73,000 CHF 2,514 8%
73,000 to 105,500 CHF 3,866 9%
105,500 to 137,700 CHF 6,791 10%
137,700 to 188,700 CHF 10,011 11%
188,700 to 254,900 CHF 15,621 12%
Above 254,900 CHF 23,565 13%

For Married/Single with Minor Children Zurich Cantonal tax

Annual Taxable Income Tax on Minimum Amount (CHF) Tax on excess (%)
0 to 13,500 CHF 0 0
13,500 to 19,600 CHF 0 2%
19,600 to 27,300 CHF 122 3%
27,300 to 36,700 CHF 353 4%
36,700 to 47,400 CHF 729 5%
47,400 to 61,300 CHF 1,264 6%
61,300 to 92,100 CHF 2,098 7%
92,100 to 122,900 CHF 4,254 8%
122,900 to 169,300 CHF 6,718 9%
169,300 to 224,700 CHF 10,984 10%
224,700 to 284,800 CHF 16,434 11%
284,800 to 354,100 CHF 23,045 12%
Above 354,100 CHF 31,361 13%

Geneva Cantonal Tax

Annual Taxable Income Tax Rate (%)
0 to 17,697 CHF 0
17,697 to 21,322 CHF 8%
21,322 to 23,454 CHF 9%
23,454 to 25,586 CHF 10%
25,586 to 27,719 CHF 11%
27,719 to 33,049 CHF 12%
33,049 to 37,313 CHF 13%
37,313 to 41,578 CHF 14%
441,578 to 45,842 CHF 14.5%
45,842 to 73,561 CHF 15.%
73,561 to 120,470 CHF 15.5%
120,470 to 162,047 CHF 16%
162,047 to 183,370 CHF 16.5%
183,370 to 262,261 CHF 17%
263,018 to 279,319 CHF 17.5%
280,125 to 393,392 CHF 18%
394,526 to 616,206 CHF 18.5%
More than 616,206  CHF 19%

VAT

Switzerland levies a VAT ranging between 2.5% and 7.7%

Bonus

13th Month Pay

In Switzerland, the 13th month’s pay is not mandatory however the employers may give incentive to their employees that is typically paid at the end of the year.

Employee Benefits

Swiss employees are entitled to benefits that their employers offer. Some of these are the following:

  • Social Security
  • Pension
  • Accident Insurance
  • Health Insurance

Employee offboarding

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.

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

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.

Tw Visa Img

Visa and
immigration

There are two ways in which foreign workers may be allowed to work in Switzerland:

  • If the foreign employee belongs to the European Union (EU) and/or the European Free Trade Association (EFTA), they are allowed to enter the country and seek for employment for 3 months which can be extended to 6 months if they can prove that they are actively looking for jobs within the country by registering at employment centers. Once they find a job, they can apply for a residence permit to stay in Switzerland.
  • If the foreign employee does not come from EU/EFTA countries, they must first have a job offer from a Swiss employee. The employer applies for their residence visa while the foreign employee has to apply for a work visa.

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