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Swiss Franc (CHF)
10 – 20%
Romansh, French, German and Italian.
8.9 million
Monthly
To start growing your team in Switzerland, you must establish a local entity, including an account with a local bank, a local office and an address registered as a subsidiary. This allows you to manage payroll, tax, benefits and compliance for your employees, but can take several months.
Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.
Hiring employees in Switzerland offers a range of benefits and challenges. On the positive side, Switzerland boasts a highly skilled and multilingual workforce, known for its efficiency and expertise across various sectors, including finance, pharmaceuticals, and technology. The country’s stable economy, high quality of life, and strong legal framework make it an attractive environment for both employers and employees. Additionally, Switzerland’s strategic location in central Europe facilitates business operations across the continent.
However, hiring in Switzerland comes with notable challenges. The cost of labour is high, including substantial social security contributions and salaries. Furthermore, the complex regulatory environment, including strict labour laws and employment protections, can make the hiring and termination processes more cumbersome and costly. Navigating these factors requires careful planning and consideration to balance the benefits of a skilled workforce with the financial and administrative demands.
Employers should consider hiring remotely in Switzerland due to the country’s exceptional digital infrastructure and its reputation for high productivity and professional expertise. Switzerland’s advanced telecommunications networks and strong data protection laws facilitate seamless remote work and ensure the secure handling of sensitive information. By hiring remotely, companies can access a pool of highly skilled professionals in sectors such as finance, technology, and engineering, without incurring the high costs associated with maintaining a physical office in the country. Additionally, Swiss employees are accustomed to working independently and efficiently, which aligns well with remote work arrangements. This approach allows companies to benefit from Switzerland’s top talent while maintaining operational flexibility and cost-effectiveness.
Start growing your remote workforce now
| Social security administration | |
| OASI contributions | |
| Occupational pension fund contributions | |
| Accident insurance |
Social security competitions
Pension fund
Healthcare
Accident insurance
Maximum of 90 days
Emerald Technology can onboard employees in Switzerland within 48 hours.
4 weeks in total, at least 8 weeks post-birth. This will be paid at 80% of the normal rate by social security.
10 days to be taken within the first six months after the child’s birth – this will be paid at 80% of the regular pay rate by social security.
In Switzerland there is no separate law for parental leave.
With a sickness daily benefit insurance, the employee will be paid 100% of their salary by the employer for days 1-30. Beyond this period social security will cover 80% and the employer covers 20%
As the legal employer, Emerald Technology requires the following employee documents to ensure complete compliance:
When an employer dismisses an employee it must be with just cause and they must give them notice. The notice period starts from the day after the employer notifies the employee of the termination. Notice must be given in accordance with the following schedule at a minimum:
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. |
If an employee is made redundant, they are entitled to a payment based on years of continuous service.
There is no law in Switzerland suggesting that severance pay is necessary. |
25 days a year for full-time employees.
The minimum wage varies in different Cantons
Varies for different jobs but typically between 40-42 hours.
Maximum of 170 hours per year, to be compensated at 125% of the usual hourly rate.
Monthly
There is no legal requirement for a bonus or 13th month payment although they are common
| Annual Income (CHF) | Federal Tax Rate |
| Up to 14,500 CHF | 0% |
| 14,501 – 31,600 CHF | 1% |
| 31,601 – 41,400 CHF | 2% |
| 41,401 – 55,200 CHF | 3% |
| 55,201 – 72,500 CHF | 4% |
| 72,501 – 78,000 CHF | 5% |
| 78,001 – 103,600 CHF | 6% |
| 103,601 – 134,200 CHF | 7% |
| 134,201 – 176,000 CHF | 8% |
| Over 176,000 CHF | 9% |
In Switzerland, there is a mandatory health insurance model which means every resident is required to purchase basic health insurance from a private insurance company by law. A basic health insurance policy must be purchased within three months of moving to the country or from birth. Health insurers must offer the same set of healthcare services within the basic plan, such as covering visits to the GP, specialists and hospitals. This means that employers and employees do not contribute to health insurance through their salaries.
Social security contributions are mandatory for both employees and employers in order to cover various insurance and pension programs such as disability insurance, old age and survivors insurance, and income compensation insurance. Employees contribute approximately 12.4% of their gross salary, but this excludes solidarity contribution and accident insurance as this is dependant on whether their salary is over a certain threshold. This is also the same for employers, as they also contribute approximately 12.4% and the same rules apply when it comes to solidarity contribution and accident insurance.
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