How to hire and pay employees in Switzerland
With Instahirin, your business can easily hire employees in Switzerland. No more worrying about local laws, complex tax systems, or managing international payroll.
Before hiring
EMPLOYEES IN The Switzerland
Before hiring employees in Switzerland, one key thing employers should be aware of is the country’s Federal Act on Data Protection (FADP). While similar to the GDPR, Switzerland has its own data protection regulations that apply to how you collect, store, and transfer employee personal data. Employers must obtain consent and implement safeguards, especially for international data transfers.
Another critical consideration is understanding Swiss labor laws and mandatory benefits. Switzerland has no national minimum wage, but sector-specific collective agreements may apply. Employers are required to contribute to social security (AHV/AVS), pension schemes (BVG/LPP), accident insurance, and unemployment insurance. Employees are entitled to paid annual leave (typically four weeks), sick leave, maternity leave, and public holidays. Employment contracts must be clear and follow Swiss labor standards, and dismissals must follow fair and documented procedures.
At a glance
CURRENCY
Swiss Franc CHF
OFFICIAL LANGUAGE
German, French, Italian & Romansh
PAYROLL FREQUENCY
Monthly
EMPLOYER TAXES
17.4%
of gross salary
13th / 14th SALARY
N/A
Good to know
Switzerland has a mandatory health insurance system, where all residents must purchase private health insurance from approved providers. While the system is privatized, it is highly regulated, ensuring universal access to healthcare. Employers typically do not contribute to health insurance, but many offer supplemental benefits.
The standard workweek varies by sector but is generally 40 to 44 hours, with a legal maximum of 45 hours for office work and 50 hours for manual labor. Overtime is allowed with compensation or time off. Employees are entitled to at least 4 weeks of paid vacation (5 weeks for those under 20), plus national and regional public holidays, which vary by canton.
Labor laws in Switzerland
Working hours and overtime
The standard workweek in Switzerland is 40-42 hours, though this can vary by industry and collective labor agreements. Federal law caps working hours at 45 hours per week for office roles and 50 hours for industrial and retail employees.
Employment contracts
Employment contracts in Switzerland must outline essential terms, including compensation, working hours, notice periods, and job descriptions. While verbal agreements are legally valid, written contracts are standard and strongly encouraged to avoid disputes. Depending on the region, multilingual contracts are common, particularly in German, French, or Italian.
Probationary period
Probationary periods in Switzerland typically last one month but may extend up to three months if specified in the employment agreement. During this period, the employer and employee can terminate the contract with seven days’ notice.
Calculate costs to hire internationally
Benefits and leave in Switzerland
Annual leave in Switzerland
Employees in Switzerland are entitled to at least four weeks of paid vacation per year, and young workers under 20 receive five weeks. Additional leave may be included in supplemental agreements. Many employers offer more generous policies as part of a benefits package.
Sick leave
Employers must continue salary payments during illness for a limited period based on employment duration and canton rules. Many provide private insurance for extended leave.
Parental leave
Mothers are entitled to 14 weeks of paid maternity leave at 80% of their average earnings. Paternity leave is two weeks at 80%. Leave must be taken shortly after the child’s birth.
Holidays
Switzerland observes one national holiday August 1 (Swiss National Day). Additional holidays vary by canton. Employers must track canton-specific observances for compliance.
Employer tax
In Switzerland, employers typically contribute around 12% to 16% of an employee’s gross salary to mandatory social security schemes, including old-age and survivors’ insurance (AHV), disability insurance (IV), unemployment insurance (ALV), accident insurance, and occupational pension plans (BVG/LPP), with exact rates depending on salary level and canton.
Individual tax
In Switzerland, individuals pay progressive federal, cantonal, and municipal income taxes, with combined rates typically ranging from 20% to 40% depending on income and residence, along with mandatory social security contributions of around 6%–7% for old-age, disability, and unemployment insurance.
Termination in The Switzerland
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
- Voluntarily by the employer
- By the expiration of the contract
Notice period
Swiss law mandates a one-month notice period for terminations during the first year of employment, two months in the second year, and three months thereafter. Employment contracts may outline different terms.
Start hiring employees in
Switzerland
Setting up a business entity in every country where you want to hire isn’t scalable it’s time-consuming, expensive, and legally complex. In Switzerland, navigating federal and cantonal labor laws, social security contributions (AHV/AVS), pension schemes, and tax regulations can be challenging. Managing contracts, payroll, and compliance manually through emails and spreadsheets increases the risk of errors and inefficiencies.
With InstaHirin, you can easily manage HR, payroll, and automate compliance in Switzerland and 180+ countries all from one user-friendly platform so you can hire quickly and confidently without setting up a local entity.
Disclaimer: The information provided in this resource is for general educational purposes only and shall not be construed as legal advice. While InstaHirin yster strives to provide current and accurate information, InstaHirin makes no warranties or representations as to the correctness of the content provided and accepts no liability or responsibility for any errors or omissions in the content provided. By using this resource you acknowledge and agree that you do so at your own risk. The content of this resource is subject to change without notice.
