Overview

Capital
Bern
Currency
Swiss Franc
Date Format
dd/mm/yyyy

Taxes

Employer
4.35% - Pension Old age and survivors (OASI)
.7% - Disability Insurance (DI)
.225 - Income Compensation (IC)
1.1% - Unemployment Insurance
0.5% - Supplemental Unemployment Insurance for salary over SFr 12,350 per month
~2.45% - Family Allowance
0.046% - Maternity leave
~ - Occupational Accident Insurance - Contribution percentage varies based on the insurance provider as well as the degree of risk that the employee is exposed to.
~ - Non-Occupational Accident Insurance - Contribution percentage varies based on the insurance provider as well as the degree of risk that the employee is exposed to.
Employee
4.35% - Pension Old age and survivors (OASI)
.7% - Disability Insurance (DI)
.225% - Unemployment Insurance
.5% - Supplemental Unemployment Insurance for salaries over SFr 12,350 per month
0.046% - Maternity Leave
~ - Non-Occupational Accident Insurance - Contribution percentage varies based on the insurance provider as well as the degree of risk that the employee is exposed to.

Minimum Wage

General

No national minimum wage. However, in general, minimum wage is set by collective bargaining agreements. The Swiss government has determined that each canton must set a minimum wage based on the average salary per industry if there isn't already collective bargaining agreement in place.

Working Hours

General

Depending on the field of work, the max number of working hours a week is either 45 or 50 hours. Employees under contract typically work 40 to 42 hours per week. 

Overtime

Overtime work is compensated at 125% of the regular pay rate, or time off is given in lieu of payment. 

VAT

General

VAT is 7.7% standard rate.

Mandatory Benefits

Pension Fund

The contributions are borne by the employer and the employee in equal parts. They depend on the age of the employee and range from 7% to 18% of the coordinated salary.

Age

Contribution %

25 to 34

7.0   %

35 to 44

10.0 %

45 to 54

15.0 %

55 to 64/65

18.0 %

Social Security

Switzerland has a three pillar social security system.

Pillar 1 - State-run provident measures  for old age, survivors, and invalidity insurance.

Pillar 2 - Occupational benefit plan

Pillar 3 - Voluntary individual provident measures 

Payroll

Payroll Cycle

Employees must be paid monthly by the last working day, however, the pay date is typically by the 25th of the month.

Termination

Termination Process

Termination in Switzerland has the principle of freedom of dismissal, making it possible to terminate a contract of employment without there being an important reason, provided that such termination is not discriminatory or abusive. The reason for the dismissal must be explained when the other party requests it. Even if the dismissal is valid through oral termination, it is advisable to do so in writing for evidentiary purposes.

Advance Notice

Termination is considered legally valid from the moment the recipient receives it.

The statutory notice periods are as follows:

  • 7 days during the trial period
  • 1 month during the first year of service
  • 2 months during the second to the ninth year of service
  • 3 months from the tenth year of service

Alternatively, the parties can contractually agree on a notice period.

A fixed-term employment contract ends on the expiry of the agreed period.

Severance Pay

An employee is entitled to severance pay if it is stated in their contract, or if they are over the age of 50 and have worked in the company for at least 20 consecutive years. Severance payment is two month's of salary.