Overview

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

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Taxes

Employer
4.35% - Pension Old age and survivors (OASI)
.7% - Disability Insurance (DI)
.225 - Income Compensation (IC)
1.1% - Unemployment Insurance
.5% - Supplemental Unemployment Insurance for salary over SFr 12,350 per month
1.2% - Family Contribution
Employee
4.35% - Old age and survivors
.7% - Disability Insurance
.225% - Income Compensation
1.1% - Unemployment insurance
0.5% - Supplemental Unemployment Insurance for salary over SFr 12,350 per month

Minimum Wage

General

No national minimum wage.

Working Hours

General

Contractually agreed working hours are 40 or 42 hours per week. Depending on the field of work, the maximum number of working hours a week is either 45 or 50 hours.

Overtime

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

VAT

General

7.7% Standard VAT

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 funded by employers and employees

Pillar 2 - Occupational benefit plan (pension fund)

Pillar 3 - Voluntary individual provident measures

Payroll

Payroll Cycle

Employees are paid monthly, typically by the 25th.

Additional Withholdings
 
 
 

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.