Switzerland – Zurich Payroll and Benefits Benchmark guide

No national minimum wage.

Employees over the age of 20 receive 4 weeks of paid holiday. employees under the age of 20 receive 5 weeks of paid holiday.

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

Paternity leave is commonly one or two days. There are efforts underway to introduce a statutory two week paternity leave.

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

7.7% Standard VAT

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.

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

Employees are paid monthly, typically by the 25th.

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.