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Europe - Switzerland
Employer of Record Switzerland

Last updated: Jul 24, 2024
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Country Description

Switzerland is in western Europe by France and Italy. Not a member of the EU, it has a high-income economy and boasts a renowned banking and financial hub. It’s also a pharmaceutical and precision manufacturing exporter. Switzerland has a highly skilled of around 5 million people. Foreign nationals comprise roughly 25 % of the population.

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Employment contracts in Switzerland are generally written, although this is not required. However, when the employee’s contract is for an indefinite term or for a fixed-term lasting longer than a month, the employer must provide the employee a written document that includes:

  • the names of the employer and employee,

  • the date the employment relationship will begin,

  • a description of the job,

  • the employee’s salary and any adjustments, and

  • the number of hours to be worked each week.


In practice, terms of employment are often set by collective agreements, which cover many workers in Switzerland.

Bonuses are common in Switzerland and are often paid towards the end of the year as a 13th month salary. Workers on fixed-term contracts sometimes receive a bonus when the contract expires.

The standard work week in Switzerland is 45 hours for industrial, office, technical and retail workers, while other industries are limited to 50 hours. Overtime may not exceed two hours per day. Employees whose work week is 45 hours may not work more than 170 overtime hours per year, while the annual overtime limit for employees who work 50 hours per week is 140 hours. Employees are paid at 125% of their standard hourly rate for overtime, although white-collar workers and retail workers in large stores do not begin to receive the 25% supplement until they have worked 60 hours.

Employees are entitled to three weeks of paid sick leave in Switzerland during the first year of work for an employer, and more the longer they remain with the employer. The exact amount of sick leave and sick pay the employee receives varies based on canton and may be determined by a contract or collective agreement.

Female employees receive 14 weeks of maternity leave in Switzerland. The leave lasts 16 weeks in the canton of Geneva, and other cantons may enact other laws that provide for more time. In every canton except Geneva, a mother who has used her 14 weeks of maternity leave is entitled to two more weeks of unpaid leave before returning to work. Fathers may take up to two weeks of paternity leave during the first six months after birth.

Employees receive four weeks of paid annual leave in Switzerland.

Switzerland has just one national public holiday: Swiss National Day. Switzerland's cantons determine the holidays celebrated in that canton.

Switzerland requires citizens and residents to purchase private health insurance.

Either the employer or the employee may terminate an employment contract in Switzerland. Unless a contract or collective agreement provides otherwise, the notice period ranges from one week to three months depending on the employee’s length of service. An employee can be dismissed without notice but only for extreme misconduct. Employees past the age of 50 who have worked for their employers for more than 20 years are entitled to severance of a minimum of two months of salary.

Employers are responsible for contributing approximately 13.85% to 41.51% to social taxes depending on the employee’s salary.

Employee contributions in Switzerland between approximately 14.38% to 28.38% to social taxes as part of their salary.

Geneva -- Employer10.463% to 14.463% + 31 CHF per employee

Zurich -- Employer8.17% - 23.50%

Authority Payment Paid To Method

Canton de Vaud - Employer contribution - eCheck (Local)

Evest AG - Employer contribution - eCheck (Local)

Joint Foundation Vita c/oZurich Life lnsurance Ltd - Employer contribution - eCheck (Local)

Kantonales Steueramt - Employer contribution - eCheck (Local)

Socialversicherungsanstalt des Kantons Zurich - Payroll Taxes - eCheck (Local)

Stadt Zurich - Employer contribution - eCheck (Local)

Zurich Versicherung KTG - Employer contribution - eCheck (Local)

Zurich Versicherung UVG - Employer contribution - eCheck (Local)

Zurich Versicherung UVG-Zusatzversicherung - Employer contribution - eCheck (Local)

Citizens of EU/EFTA member states

Citizens of EU/EFTA member states can enter, live and work in Switzerland without a VISA

Tthere are temporary restrictions on Croatian nationals taking up employment in Switzerland for more than three months or becoming self-employed in Switzerland. The number of new short-term permits and new residence permits that can be issued to Croatian nationals is capped for 2023 and 2024.

Short-term employment

You do not need a residence permit if you work for an employer in Switzerland for up to 3 months, or if you provide a service in Switzerland for a maximum of 90 days per calendar year.

However, your employer must register your paid employment through the notification procedure for short-term work in Switzerland at least one day before employment is due to begin.

Employment longer than 3 months

You must apply for a residence permit from the Swiss commune in which you are living before starting work. You will be have to submit the following documents:

  • a valid identity card or passport

  • confirmation of employment from your employer or a certificate of employment (e.g. an employment contract).


The residence permit is valid throughout Switzerland and allows you to change your job or employer. Its period of validity depends on the length of your employment.

UK nationals

UK nationals are no longer citizens of the EU and are subject to the same visa rules that apply to third-country nationals, including quotas.

If you are a UK national and already had residence rights in Switzerland before 2021, you benefit from special provisions under the agreement between Switzerland and the UK on acquired rights.

Switzerland and the UK have also concluded an agreement on mobility for service providers. Until the end of 2025, service providers from the UK must notify the Swiss authorities of short-term work in Switzerland of up to 90 days via the online notification procedure.

Non-EU/EFTA nationals

Who can work in Switzerland?

Only qualified non-EU/EFTA nationals, for example managers, specialists or university graduates with several years of professional experience, may work in Switzerland.

Non-EU/EFTA nationals require a work permit, even for short-term employment. The number of permits issued is limited.

A work permit may also be issued for self-employment. Spouses of Swiss nationals or of persons with a settlement permit do not require a work permit.

Requirements

Your future employer must demonstrate that your employment is in the economic interests of Switzerland and that they are unable to recruit the necessary personnel in Switzerland or from an EU/EFTA member state.

Your employer must provide you with the same working conditions and remuneration as for Swiss nationals.

How do I obtain a permit?

It is up to your future employer to take the necessary steps to obtain a work permit from the cantonal immigration and employment market authorities. However, if you are self-employed it is up to you to take the necessary steps.

Further information on the procedure for non-EU/EFTA nationals is available on the website of the State Secretariat for Migration (SEM).

A work permit alone does not necessarily entitle you to enter Switzerland. Depending on your nationality, you may also require a visa. To find out if this applies to you and how to obtain a visa, see the visa page for foreigners.

On arrival in Switzerland, you must register with the communal authorities in the place where you are living within 14 days. You cannot start work before then.

The standard VAT rate in Switzerland is 8.1%.

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