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With a reputation for precision and reliability, Swiss professionals excel in fields such as finance, technology, engineering, and research. The country’s stable economy and high digital connectivity also make it an excellent choice for sourcing remote workers.
Switzerland has a complex employment framework with strict regulations around employer obligations, minimum wage standards, and mandatory social security contributions. These rules must be carefully followed to avoid worker misclassification and costly penalties.
Learn more about navigating Switzerland’s employment landscape in our detailed hiring guide.
Permanent contracts are the most common in Switzerland, offering ongoing employment with protections. Fixed-term contracts, by contrast, apply to specific timeframes and automatically terminate unless otherwise specified. Even though contracts can be made orally, it's strongly recommended to confirm terms in writing, particularly for fixed-term or temporary roles.
Swiss law also recognises specialised contract types, including apprenticeships and teleworking agreements, which must meet established labour standards to remain legally valid.
Notice periods: one to three months
Termination of employment: freedom of termination except for abusive dismissal
Need more details on Swiss employment contracts? Access the complete template now!
In Switzerland, employee benefits encompass a combination of mandatory statutory protections and commonly offered perks that improve overall compensation and job satisfaction.
Get a full breakdown of employee benefits in Switzerland!
Switzerland’s tax system for individuals is primarily progressive, with tax rates increasing as income rises. Employers in Switzerland must withhold income tax ("Quellensteuer") for foreign workers or those without permanent residence. Residents with permanent status typically pay tax through direct assessment and annual filings.
Personal income tax rate: Income tax is levied at the federal, cantonal, and municipal levels, with varying rates. The federal tax is progressive, ranging up to 11.5%, while cantonal and municipal taxes differ by location and personal circumstances.
VAT: 8.10%
Tax allowances: No significant tax allowances
Additional tax reliefs: Alimony, charitable donations, daycare expenses, bank charge deductions, medical expense deductions, and life insurance premiums.
Employers are required to pay salaries as outlined in individual employment contracts or collective agreements, and these salaries must be at least the minimum wage set by the respective canton or sector-specific collective labour agreement (CLA).
Salary payment deadline: by the 25th of the month or at the latest by the last working day of the month
Taxes and contributions payments deadline: Social security payments by the 10th of the following month; tax at source varies by canton (usually within 30 days after invoice acceptance)
Payroll declarations deadline: Within 30 days after the settlement period; year-end declaration by January 30
Payroll currency: CHF
Switzerland’s employment law, defined by the Swiss Code of Obligations (CO), sets clear rules for employee-employer relationships. Employers must clearly outline key terms, such as job duties, hours, pay, and notice periods, in employment contracts, particularly those lasting more than a month. Collective labour agreements (CLAs) also apply in specific sectors, setting minimum standards for wages, hours, and leave.
Total employment cost: In Switzerland, the total employment cost for an employer includes not only the gross salary but also mandatory employer contributions to social security and other expenses.
Minimum wage: CHF 24.48 per hour
Probation period: one to three months
Need more insight into Switzerland’s employment categories, employer responsibilities, and work standards?
An Employer of Record (EOR) in Switzerland enables you to hire talent legally without setting up a local entity. The EOR becomes the legal employer on your behalf, handling all compliance and employment responsibilities, such as:
A Professional Employer Organisation (PEO) provides HR and administrative support while you remain the legal employer. PEO services are ideal if you already have a legal entity in Switzerland but need help managing workforce operations, including:
Native Teams offers a payroll calculator tailored to Switzerland’s labour laws, making it easy to estimate net and gross salaries, employer and employee contributions, and all mandatory deductions.
Note: The information provided above is for general guidance only and should not be considered a substitute for legal advice. We strongly recommend consulting with qualified professionals who specialise in local labour laws before making any hiring decisions. While the data was accurate at the time of writing, labour regulations are subject to change, and it is your responsibility to stay informed about the latest developments.
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Freelancers and gig workers in Switzerland are typically self-employed and responsible for managing their own taxes and social security contributions. As a client, you are not responsible for withholding taxes or social contributions on their behalf. It is important to ensure that the working relationship clearly reflects an independent contractor status rather than an employment relationship to avoid misclassification risks.
