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What should I know about hiring in Switzerland?
Hiring employees in Switzerland can be difficult, especially if you’re unfamiliar with local laws and regulations. Before beginning the recruitment process, employers are advised to comprehend the fundamentals of employment.
In the first place, Switzerland has a well-defined labour law framework regarding employment contracts, payroll processing, and tax obligations. Besides adhering to labour laws, employers in Switzerland should be acquainted with the country’s strong business culture, norms, and values.
Equality and non-discrimination are at the core of Switzerland’s employment regulations and business culture, and employers must abide by these terms to successfully recruit a workforce and have smooth operations in the country.
Why is Switzerland a good choice for finding remote employees?
There are several factors that make Switzerland an attractive country for recruiting remote employees. Firstly, Switzerland has a very strong and developed job market, especially in industries such as finance, technology, and hospitality. This opens up a vast of opportunities for networking and making personal connections to expand your business.
Switzerland is also a multicultural country with multiple official languages, promoting team diversity and creating opportunities to tackle communication with different clients successfully. Except for diversity, Swiss labour codes and business norms are based on promoting equality and prohibiting discrimination based on gender, religion, and disability.
Finally, Swiss business organisations are popular for punctuality, efficiency, and professionalism, which promotes a different set of values within your remote teams and contributes to the professional and personal development of the employees in your organisation.
How can Native Teams help you hire in Switzerland?
For a seamless hiring process in Switzerland, look to Native Teams. Our Employer of Record solutions are made to guide you through the intricate Swiss labour laws, cultural nuances, business customs, and language requirements.
Our team of seasoned tax and legal professionals is your trusted source of guidance and support while recruiting in the country. From handling payroll and taxes to comprehending complex HR paperwork and labour laws – Native Teams empowers you to hire and onboard Swiss talent into your remote team effortlessly.
Hire your first Swiss employee with Native Teams.
Legal requirements for hiring in Switzerland
Minimum wage
Switzerland doesn’t have legal requirements regarding minimum wage. However, the minimum payment received by Swiss employees is regulated by the Collective Bargaining Agreement and varies between different cantons.
Contributions & taxes
Employer tax
The total employer cost in Switzerland can vary from 8% to 23%, based on several factors.
Corporate tax
The corporate tax in Switzerland is 14.93%.
Employee tax
The total employee tax can also vary from 8% to 10%, depending on several factors.
Income tax
Employees in Switzerland are subject to income tax on 3 different levels – federal, cantonal, and municipal level. Federal income taxes are the same all over Switzerland, with the highest percentage of 11.5%. Cantonal and municipal taxes vary and can be flat or progressive.
To calculate the salary and taxes in Switzerland please click here.
Payroll cycle
The payroll cycle in Switzerland is generally monthly.
Is there a 13th salary in Switzerland?
While there are no statutory requirements, employees in Switzerland commonly receive a 13th salary from their employers.
Labor rules
Probation period
A probation period of 1 month is mandatory for individuals employed with permanent employment contracts. The probation period can be extended to a maximum of 3 months.
Notice period
The notice period in Switzerland depends on the years of service, as follows:
- 1 month of notice period for individuals with 1 year of service.
- 2 months of notice period for individuals with 2 to 9 years of service.
- 3 months of notice period for individuals with 10 or more years of service.
Severance period
Only individuals who are above 50 years of age and have at least 20 years of service are entitled to a severance pay equivalent to a minimum of 2 standard salaries.
Working hours
Switzerland follows the standard workweek of 40 hours per week, 8 hours per day from Monday to Friday.
Leave and benefits
Public holidays
In Switzerland, public holidays can vary between different cantons. The following are the public holidays celebrated on a federal level:
- National Day: August 1
- Ascension Day: variable
- Christmas Day: December 25
Sick leave
Employees in Switzerland are entitled to sick leave depending on the years of service they have. During the first year of service, employees are entitled to 3 weeks of paid sick leave, increasing up to 4 months with each year of service.
Maternity leave & paternity leave
Female employees in Switzerland are entitled to maternity leave after being employed for at least 5 consecutive months and contributing to the social security system for at least 9 consecutive months preceding childbirth. Maternity leave in Switzerland generally lasts for 14 weeks, while paternity leave lasts for 2 weeks and can be taken in the first 6 months of childbirth.
Other leave
Bereavement leave
Per Swiss labour laws, employers may decide about the duration of the employee’s bereavement leave. This typically includes 3 to 5 days.
Marriage leave
Swiss labour laws also don’t specify the duration of employees’ marriage leave. Employers typically allow 1 to 3 days of paid marriage leave.
Care leave
Swiss employees are entitled to a paid care leave of 14 weeks to take care of their seriously sick children.
What are the minimum vacation days?
All workers in Switzerland are entitled to a minimum of 4 weeks of paid leave per year. Employees who are younger than the age of 20 are entitled to 5 weeks of paid leave per year.
Insurance
Health security & private insurance
Anyone who has worked for an employer for at least three months within the previous fifteen months is entitled to free medical and dental care through the Social Security Administration.
* Native Teams can support you in finding the best private insurance in the country. Contact us and we will send a comparison of insurance packages and prices*
Visa
Relocation and work permits
Native Teams will apply for your work visa in the nation on your behalf and serve as your Employer of Record. All the required documents can be uploaded using our app. Until you have your work and residency visa, Native Teams will support you by providing you with frequent information on the progress.
How long is the visa/work permit process?
2 to 4 weeks depending on the authorities and provided documents.
Which documents do you need?
To apply for a visa/work permit in Switzerland, upload the documents from our onboarding list (relocation to log in/pricing).
Why use Native Teams for hiring in Switzerland?
Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:
- No paperwork: We will handle all the necessary paperwork for you.
- Save on taxes: We help you handle your taxes.
- No company set up: You can expand your business using our company entitles.
- Online onboarding: We’re here to ensure your onboarding process is trouble-free.
- No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
- Increase your profit: We assist you in growing your business and maximizing your profits.
- Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
- Local support: We can assist you in understanding and complying with the relevant local laws.
