Hire and pay employees in
Switzerland, hassle-free

In Switzerland, there is no national minimum wage by law. However, the minimum wage for a fulltime employee established by the Collective Bargaining Agreement is  CHF 59,296.12 gross a year. Some cantons apply minimum hourly wages: 

• Canton of Neuchâtel - CHF 20.77
• Canton of Jura - CHF 20.60
• Canton of Geneva - CHF 24
• Canton of Ticino - CHF 19
• Canton of Basel Stadt - CHF 21

The individual income tax ranges from 1% to 24%. Income tax is calculated according to progressive rates, location (canton) of the employee. Multiple additional factors may impact overall rates such as the household status and the number of children.

The employer cost is generally estimated between 10-20% of the employee salary. The variation will depend on the canton, age, salary, and multiple conditions.

• Retirement Capital and Disability insurance - 5.3%
• Unemployment insurance - 1.1% 
• Pension fund - estimated 8%
• Accident Insurance: 
  • 0.1204% +
  • 0.1075% +
  • 0.1340% for employees earning more than CHF 12,350 only
• Sickness Insurance - 0.64%  
• Family fund - 1.6%
• Compensation fund admin fee - 0.011%
• CBA affiliation cost - 0.3% for employees earning less than CHF 12,350 only
• WFH Allowance - CHF 150 (pro-rated for part-time employees)
  
  Please note: most employer costs have limits and maximum salaries for the calculations, so percentages may vary. The exact pension fund contribution will be calculated based on the employee’s information.

These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.

Overtime compensation for Deel EOR employees is subject to CBA regulations:

• Additional hours worked between 40 and 45 a week must be paid at 100% of the standard rate or compensated by time off in lieu at 100% if agreed in the employment agreement
• Additional hours worked over 45 a week must be paid at 125% of the standard rate or compensated by time off in lieu at 100% if agreed in the employment agreement.

Different rules apply to employees whose remuneration exceeds the annual threshold (CHF 148,200 for 2024) and employees holding a decision-making function.

Pregnant employees who have worked for 270 consecutive days are entitled to 14 weeks (16 weeks in the Canton of Geneva) of paid leave. Eight weeks must be taken after the child's birth. The employee will receive 80% of the salary during this period, capped at CHF 196 per day, and Social Security will be responsible for this pay. The employee can extend leave additional 14 days unpaid.

For Deel EOR employees, the full salary continues to be paid.

Employees who have worked for 270 consecutive days are entitled to 10 working days of paid paternity leave. Leave must be taken within six months after the child's birth. The employee will receive 80% of the salary during this period, capped at CHF 196 per day, and Social Security will be responsible for this pay.

The employee can request to extend leave, and it will depend on the employer's discretion.

For Deel EOR employees, the full salary continues to be paid.

In Switzerland, no law covers parental leave. However, employees may be entitled to maternity leave and paternity leave.

Employees are entitled to paid sick leave for up to 730 days in a 900 day period. Sick leave in Switzerland is managed in 2 ways.
The employer has sickness daily benefit insurance:
0-30 days: paid at 100% of the employee's regular salary by the employer
31-730 days:  paid at 100% of their regular salary, 80% by insurance and 20% by the employer.

The employer does not have sickness daily benefit insurance:
Paid at 100% of the employee's regular salary, with limits on sick leave entitlement depending on how long the employee has been working at the company.
1st year of employment: 3 weeks
2nd year of employment: 1 month
3rd and 4th year of employment: 2 months
5th - 9th year of employment: 3 months
10+ years of employmentL 4 months

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

Terminations in Switzerland can be complex and depend on the contract terms and what's agreed on between the parties.

Compliant terminations include:

• Voluntarily by the employee
• By mutual agreement
• Unilaterally by the employer based on:
  • Probation period
  • Objective grounds
  • Disciplinary dismissal
  • Performance of the employee
• By the expiration of the contract

Uncompliant terminations include:

• Fixed-term employment contracts before the end date.
• Termination while the employee is ill or had an accident, they will be protected according to the length of the service:
  • 30 days during the first year of service
  • 90 days from the second to the fifth year
  • 180 days from the sixth year

The employer must wait until the employee returns to work before leaving in all these cases. However, the employee can terminate their contract during the protection period.

The minimum notice period is 30 days and will be increased according to the length of the employment.

• 30 days if the length of service is one year
• 60 days if the length of service is between the second and the ninth year
• 90 days if the length of service is more than ten years.

During the probation, the notice is seven calendar days.

In Switzerland, there are no statutory requirements for severance payments for employees under 50 or who have more than 20 years of seniority. During the notice period, the employee will receive standard salary wages.

Employees under the age of 20 or over the age of 50 are entitled to 25 days of vacation a year as established by the Collective Bargaining Agreement.

In Switzerland, there are 3 nationwide public holidays:

• National Day: August 1
• Ascension Day
• Christmas Day: December 25

There are an additional 6-8 regional holidays that vary by canton.

Onboarding takes 3 business days.

Contracts must be in writing and signed by both parties.

A contract must include:

• Name
• Start date
• Length of the employment
• Job description
• Salary
• Termination conditions
• Benefits insurance