Employer Payroll Tax
Employee Payroll Taxes
Employee Income Tax
Employee Income Tax
No national minimum wage. However, minimum wages can be established by way of collective bargaining agreements.
Employees are paid monthly, typically by the 25th.
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 work is compensated with time off in lieu (if agreed between the parties) or 125% of the salary. The parties can contractually agree that overtime hours shall be compensated by the salary.
Employees over the age of 20 receive 4 weeks of paid holiday. Under the age of 20, they receive 5 weeks of paid holiday.
12 public holidays. Holidays vary depending on the canton.
Employees are entitled to continuous salary payments for a certain period of time depending on their years of service (three weeks during the first year of service). Alternatively, employers may take out a daily benefits insurance scheme, under which employees usually receive 80% of their last salary for a maximum of 720 days.
Mothers (both full-time and part-time employees) are paid 80% of their wages in the form of a daily allowance for 98 days (up to a maximum cap of SFr 196 per day).
Maternity allowance is given to employees who have contributed to the OASI for at least 9 months preceding the delivery and have worked for at least five months.
Fathers are entitled to 14 days of paternity leave after the birth of a child. Compensation amounts to 80 percent of average earned income prior to the birth of the child and capped at 196 francs per day.
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.
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.
7.7% Standard VAT