Current Region & Language
Current Region & Language
Current Region & Language
Currency
Swiss Franc (CHF)
Employer Taxes
Employer contributions are about 12-16% of gross salaries for social security.
Payroll Frequency
Monthly
Language
German, French, Italian, Romansh
Date Format
DD/MM/YYYY
Switzerland By The Numbers
8.6 million
Population
CHF 800 billion
GDP
9
National Holidays
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Weekly Working Hours
National Holidays
Leave
Employees are entitled to various types of leave, including holiday leave, sick leave, maternity leave, carers’ leave for the necessary care of children, family members, and partners, paternity leave, and parental leave. The applicable Collective Labor Agreement (CLA) may provide for additional types of leave.
Employment Contracts
Employers are required to provide written employment contracts and policies that outline the terms and conditions of employment, including job responsibilities, compensation, benefits, and workplace expectations, in compliance with applicable labor laws.
Types of Employment
Employees, temporary agency workers, and independent contractors are all distinct types of employment.
Employment Costs
The employers’ total costs are depending on different factors such as Canton of employer, age and salary of each employee and the insurance coverage being offered. The average fixed costs range from 9.5 to 10.5%. Additional contributions will depend on the pension, accident and sickness coverage of the employer. The 2nd pillar (pension) minimum are set by the government and the employer can offer higher contributions.
IC Class Factors
Civil law, social insurance law, and tax law are taken into account. Criteria from a civil law perspective: integration of the independent contractor into a foreign work organization (subordination relationship) with indications such as: 1) authority of the employer to issue instructions (i.e. regarding working time or work process); 2) dependence of the employee in personal, operational, and economic terms; 3) working only (or predominantly) for one and the same person; 4) obligation of a work performance within an agreed period, not a work result; or 5) continuing obligation, not one-off exchange of contractual services.
Labor Leasing
The placement of contingent or temporary workers at third party sites requires a labor leasing license.
Minimum Wage Requirements
There is no minimum wage at national level in Switzerland. However, the cantons Geneva, Neuchâtel, Jura, Ticino and Basel-Stadt have set a regional minimum wage. In addition, various collective labour agreements (CLAs) include minimum wage provisions in their substantive provisions. Some minimum wages were increased for the year 2025.
Medical Benefits
Unless otherwise agreed in the employment contract, the employee must provide the employer with a medical certificate after the 1st day of sickness absence.
Employers are required to continue paying employees their full wages for a certain period during illness. According to the Code of Obligations (CO), the minimum duration is three weeks during the first year of service and thereafter wages for appropriately longer periods depending on the duration of the employment relationship and the circumstances.
Most employers, however, conclude an insurance for daily sick allowance to be able to pay their employees during long absences due to illness. The daily sick allowance usually covers for 80% of the employee’s wage and the wage payment applies for the duration of the employee’s inability to work, but in general, no longer than 720 days within 900 consecutive days.
Collective bargaining agreements may provide for additional entitlements.
Probationary Periods
The first month of an open-ended employment relationship is considered a probationary period if the parties have not agreed otherwise. Deviating agreements can be made in the employment contract, although the probationary period may be extended to a maximum of three months.
If the GAV for the temporary employment sector applies, the first three months are deemed to be a probationary period for employees with an open-ended contract
Termination Notice
The law stipulates a notice period of 7 days (calendar days, not working days) during the probationary period. The law provides for the following notice periods: after the end of the probationary period in the 1st year of employment: one month; in the 2nd up to and including the 9th year of employment: two months; from the 10th year of employment: three months, in each case for the end of the month. For labor leasing for temporary work contracts specifically, the AVG explicitly provides for the following notice periods: 2 working days during the probation period; 2 working days during the first 3 months of an indefinite assignment; 7 days required from the 4th month and up to the 6th month of an indefinite assignment; 1 month (always on the same day of the subsequent month) from the 7th month forward
Severance
Severance payments are almost irrelevant because of the deductibility of the employer’s contribution to the pension fund and there are no legal requirements regarding severance payments.
Even if the termination was abusive, it remains legally binding which means that the employment relationship will be terminated after the notice period has expired. However, the employee is entitled to a compensation payment which is limited to a maximum of six months wages (if the termination has been considered abusive).
Pre-hire Checks
Generally, the employer may only collect, and process data relating to the applicants and thus carry out background checks as long as 1) it relates to the applicant’s suitability for the employment relationship and/or 2) it is necessary for the performance of the employment contract.
Employers may contact the references that are mentioned in the applicants’ CV.
For certain professions (e.g. accountants or lawyers) and in certain industries (e.g. banking, insurance), employers may request applicants to share excerpts from 1) the debt collection register and/or 2) from the criminal records register.
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