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Country hiring guide

Hiring in Switzerland ๐Ÿ‡จ๐Ÿ‡ญ

Switzerland offers a highly skilled, multilingual workforce and flexible employment rules. All-in employer cost runs around 1.15x the gross salary, with occupational pension the main variable. Here is what to know before your first Swiss hire.

Calculate a Switzerland hire โ†’
Capital cityBern
CurrencySwiss franc (CHF)
LanguagesGerman, French, Italian
Population~8.8 million
Payroll frequencyMonthly (often 13 payments)
VAT standard rate8.1%
Employer burden*~15% of gross
TGTC flat EOR fee$499/mo ยท Tier B
Overview

Employing in Switzerland

Employment runs under the Code of Obligations, which is relatively flexible, though some cantons and collective agreements add rules. Social-insurance and occupational-pension registration are mandatory. A 13th-month salary is customary.

Minimum wage

There is no national minimum wage, but several cantons set their own (Geneva is above CHF 24 per hour)*. Most salaries are well above any floor.

Payroll cycle & extra pay

Monthly, with a 13th-month salary common by contract, usually paid in December.

Public holidays

Around 9 public holidays, set largely by canton, so totals vary by location.

Onboarding & probation

Written contracts are standard. Probation is one to three months, with a short seven-day notice during the period.

Employer costs

What you pay on top of salary

Employer costs sit around 15%, split across old-age and disability insurance, unemployment, accident cover, and the employer half of the occupational pension.

Employer contribution*Rate
Old-age, survivors & disability (AHV/IV/EO)~5.3%*
Unemployment insurance (ALV)~1.1%*
Occupational pension (BVG/LPP, employer half)varies by age*
Accident insurance (non-occupational split)varies*
Family allowance & admin~1-3%*

Pension scales

Occupational-pension (BVG) contributions rise with the employee's age, so older employees carry a higher pension cost, at least half paid by the employer.

Employee-side taxes

Most employees file and pay their own income tax, though foreign workers are often taxed at source. Social-insurance withholding is the employer's job, which under EOR means ours.

Types of leave

Statutory leave in Switzerland

Annual leave

A statutory minimum of four weeks (20 days) a year, five weeks for employees under 20; many contracts grant more.

Maternity leave

14 weeks of maternity leave at 80% of pay through the loss-of-earnings scheme.

Paternity leave

Two weeks of paid paternity leave, also funded through the loss-of-earnings scheme.

Sick leave

The employer must continue pay for a limited period that grows with tenure (or provide daily-sickness insurance in its place).

Employment termination

Ending employment in Switzerland

Process & notice

Employment is relatively easy to end with notice of one to three months by tenure. Dismissal does not need cause, but 'abusive' dismissal can trigger compensation.

Severance

There is no general statutory severance, except a small amount for long-serving older employees where no pension applies.

Probation

One to three months, with seven days' notice during the period.

Contractor risk

A contractor treated as dependent can be reclassified as an employee by the social-insurance authorities, with back contributions.

*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.

Employ in Switzerland without opening an entity

Compliant Swiss employment contract, payroll, social insurance, and pension, handled. One invoice, flat $499 per month.

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