Overview

Capital
Bern
Currency
Swiss Franc

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Taxes

Employer
4.2% - Pension Old age and survivors
7% - Pension Disability
3.5% - 9% - Occupational Pension
Up to 1.60% - Unemployment insurance
Employee
4.2% - Pension Old age and survivors
7% - Pension Disability
3.5% - 9% - Occupational Pension
Up to 1.60% - Unemployment insurance

Minimum Wage

General

No national minimum wage.

Non Mandatory

Expat Benefits

Expats in Switzerland can choose to deduct lump-sum expatriate deduction monthly only if their permanent home in their home country is available during the assignment, if the house has been rented or unavailable, the lump sum is not accepted. Double housing cost reduction is also available only if the home country housing is permanently owned and available by the expat.

Costs for traveling that are considered obligatory for the move will also be deducted. For the period of 5 years, school costs can also be deducted for expat’s children. Only expats who are executive employees and specialist working in Switzerland temporarily, with a letter of assignment, that states the employment term is less than 5 years and the employee will return to the home country after the assignment is over, are qualified for the expat benefits.

Working Hours

General

Depending on the field of work, the max numberof working hours a week is either 45 or 50 hours.

Overtime

Overtime work is compensated with a 25% premium.

VAT

General

7.7%

Mandatory Benefits

Pension Fund
The employer contributes 4.2% for old age and survivors, and .7% for disability.
3.5% - 9% is contributed towards occupational pension depending on insured's age and monthly earnings.
The employee contributes 4.2% for old age and survivors, and .7% for disability.
3.5% - 9% is contributed towards occupational pension depending on insured's age and monthly earnings.

Payroll

Payroll Frequency

Monthly

Pay Date

Typically by the 25thof the month.

Additional Employee Withholding
1) Disability Benefits
2) Compensation for temporary loss of income
3) Unemployment
4) Accident Insurance
5) Family allowance
6) Administration fee
1) Employer contributes 0.7%
2) Employer contributes 0.25%
3) Employer contributes 1.1% if the salary is up to CHF 126,000 and 0.5% if it is over 126,000.
4) Employer contributes up to CHF 126,000
5) Employer contributes 1.2% - 3.5% no salary ceiling
6) Employer contributes 3% of the pension, disability and loss of income contribution.
1) Employee contributes 0.7%, no salary ceiling.
2) Employee contributes 0.25% no salary ceiling
3) Employee contributes 1.1% if the salary is up to CHF 126,000 and 0.5% if it is over 126,000.
4) Employee contributes 0%
5) Employee contributes 0%
6) Employee contributes 0%

Termination

Termination Process

Termination in Switzerland has the principle of freedom of dismissal applies, making itpossible to terminate a contract of employment without there being a relevant reason.However, the reason for the dismissal must be explained when the other party requests it.Although a valid reason isn’t required, the law provides for a list of reprehensible grounds.Even if the dismissal is valid through oral termination, it is advisable to do so in writing as well as by registered letter, mainly for evidenceif any questions arise.

Advance Notice

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

  • 7 days during the trial period
  • 1 month during the first year of service
  • 2 months fortwoto nineyearsof service
  • 3 months from the tenth year of service

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

Severance Pay

Employee is entitled to a severance pay if they are over the age of 50 and have worked in the company for 20 consecutive years. The payment is two months of salary.