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Whether you're hiring your first employee or expanding an existing team, understanding the local employment landscape is essential. From visa requirements and statutory benefits to payroll taxes and regulatory oversight, this section provides a practical overview of what employers need to know to stay compliant and operate effectively in
Switzerland operates a dual system. EU/EFTA nationals benefit from free-movement rules and may obtain L (short-term), B (residence), or G (cross-border) permits depending on contract length and residence. Non-EU/EFTA nationals face strict quotas and must be hired for specialist or managerial roles; employers must prove no suitable local candidate is available. All foreign nationals require a valid work permit issued by the relevant canton.
Payroll Frequency: Salaries are paid monthly, commonly on the 25th.
Income Components: All employment income, including benefits in kind, is taxable.
Deductions: Social insurance, accident insurance, pension contributions, and (where applicable) withholding tax.
Employer Contributions: Social insurance (old-age, survivors’, disability), unemployment insurance, family allowances, accident insurance, and occupational pension contributions (rates vary by scheme).
Withholding Tax: Tax at source (Quellensteuer/QST) applies to certain employees; employers must withhold and remit to the cantonal tax office.
Payroll Obligations: Monthly payroll, mandatory social insurance remittances, and adherence to cantonal rules.
Contract Types: Open-ended and fixed-term contracts; fixed-term roles do not require probation.
Probation Period: One to three months for open-ended contracts, agreed in writing.
Working Hours: Standard 40–44 hours per week; legal maximum 45–50 depending on sector.
Overtime: Permitted within statutory limits; compensation rules vary.
Notice Periods:
Social Security: Mandatory contributions to old-age, survivors’, disability insurance; unemployment insurance; accident insurance (occupational and non-occupational depending on employer policy); and an occupational pension fund.
Annual Leave: Minimum 4 weeks; 5 weeks for employees under 20.
Public Holidays: Set by each canton; 1 August is the only federal holiday.
Sick Leave: Typically at least 3 weeks paid in the first year, with longer protection based on tenure and insurance arrangements.
Maternity Leave: 14 weeks at 80% pay (capped daily); 16 weeks in Geneva.
Paternity Leave: Governed by cantonal and federal rules (federal minimum applies).
Private Benefits: Many employers offer supplemental health, life, and retirement benefits.
Tax Residency: Individuals are tax-resident if they take up legal residence, stay ≥90 days without working, or work in Switzerland for over 30 days in a calendar year.
Taxable Income: Includes employment income, benefits in kind, pensions, investment income, and most allowances (rules vary by canton).
Tax System: Income taxes levied at federal, cantonal, and municipal levels. Combined rates vary significantly by canton.
Federal Tax: Progressive, with brackets from 0% up to 11.5% at the highest income levels.
Tax Year: January 1–December 31.
Double Taxation: Switzerland maintains extensive DTA coverage.
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