Overview
Capital
BernCurrency
Swiss Franc 
Public holidays calendar
Taxes
Employer
4.2% - Pension Old age and survivors
7% - Pension Disability
3.5% - 9% - Occupational Pension
Up to 1.60% - Unemployment insurance
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
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.
Paid Time Off
Vacation days
Employees over the age of 20 receive 4 weeks of paid holiday. Under the age of 20, they receive 5 weeks of paid holiday.
If employees have unpaid leaves in the current month those are deducted from the salary, but if the employees "buy" days off, those days can be bought for a different month and deducted from the current month's salary.
Sick days
Employees with at least a year of service are paid 100% of their earnings for up to three weeks. Employees covered by the collective agreement providing cash benefits usually receive 80% of their last salary after a two day waiting period for a maximum of 720 days.
Maternity Leave
Mothers (both full-time and part-time employees) are paid 80% of their wages in the form of a daily allowance for 98 days.
Maternity allowance is given to employees who have contributed to the AVS for at least 9 months preceding the delivery and have worked for five months.
Paternity Leave
Fathers cantake two weeks’ paid leave in the first six months after the birth of the child.
Public Holidays
Public holidays vary from depending on the canton.
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.
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.
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
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.
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%
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.
