Talent Wiki - Switzerland

Your quick guide on talent and labor compliance norms in Switzerland

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Capital

Bern

Currency

Swiss Franc (CHF)

Languages

German, French, Italian, Romansh

Payroll Frequency

Monthly

GDP per Capita

$98,770

Employer Tax

9.07%

Supplementary Guide for Employment and Expansion in Switzerland

Talent Overview

Switzerland holds the name for one of the world's most advanced and highly-developed free-market economies. The service sector, along with tourism, are the major contributors to the economic growth of the country. Switzerland holds the 18th rank for Nominal GDP.

Major Economic Hubs:

Zurich, Bern, Geneva, Basel, Grindelwald

Skills in Demand :

Engineers, Skilled Technicians, Software Developers, and other IT professions, Mechanic and Welders

Local Universities

The top local universities in Switzerland are listed below:

Eidgenössische Technische Hochschule Zürich - Swiss Federal Institute of Technology

RANKING

Local : 1

World : 53

École Polytechnique Fédérale de Lausanne (Federal Institute of Technology Lausanne)

RANKING

Local : 2

World : 175

University of Geneva

RANKING

Local: 3

World : 196

Jyväskylän yliopisto (University of Jyväskylä)

RANKING

Local : 4

World : 218

University of Bern

RANKING

Local : 5

World : 237

Salary Data

The table below mentions the salary data of some job titles with average salaries in Switzerland:

Job Title	Average Salary (CHF)	Average Salary (USD)
Sales Manager	219,000 CHF	228,426.42 USD
Information Technology Manager	218,000 CHF	227,383.37 USD
General Manager	215,000 CHF	224,254.24 USD
Business Development Manager	210,000 CHF	219,039.03 USD
Business Analyst	153,000 CHF	159,585.58 USD
Project Manager	145,000 CHF	151,241.23 USD
Developer	122,000 CHF	127,251.25 USD

Talent Sourcing Tips

Top Local Job Boards:

Experteer, Job.ch, Jobscout24

Number of LinkedIn users:

3,640,000

Multiplier Recruitment Partner:

iXceed

Employing in Switzerland

When onboarding an individual from Switzerland, the employer needs to have knowledge of the employment laws, benefits, and deductions. This section will cover much of that.

Employee Contract

According to Swiss laws, employment contracts, written or not, are mandatory. The contract must mention all the details about the employer along with terms and conditions. The employment contract in Switzerland must be written in one of the four official languages in the country (German, French, Italian, Romansh).

Probation Period

The probationary period for employees ranges from 1 - 3 months.

Public and Provincial Holidays

Date	Name	Type
Date	Name	Type
1 Jan	New Year's Day	Common local holiday
2 Jan	Berchtold Day	Common local holiday
6 Jan	Epiphany	Common local holiday
1 Mar	Republic Day	Common local holiday
19 Mar	Saint Joseph's Day	Common local holiday
7 Apr	Näfelser Fahrt	Common local holiday
15 Apr	Good Friday	Common local holiday
18 Apr	Easter Monday	Common local holiday
1 May	May Day	Common local holiday
26 May	Ascension Day	Common local holiday
6 Jun	Pentecost Monday	Common local holiday
16 Jun	Corpus Christi	Common local holiday
23 Jun	Jura Independence Day	Common local holiday
15 Aug	Assumption of Mary	Common local holiday
8 Sep	Jeune Genevois	Common local holiday
19 Sep	Federal Fast Monday	Common local holiday
22 Sep	Mauritius Day	Common local holiday
25 Sep	St. Nicholas of Flüe	Common local holiday
1 Nov	All Saints' Day	Common local holiday
8 Dec	Immaculate Conception	Common local holiday
25 Dec	Christmas Day	Common local holiday
26 Dec	St. Stephen's Day	Common local holiday
31 Dec	Restoration Day	Common local holiday

Employee Leaves

Type of Leave	Time Period	Mandatory
Annual/Earned Leave	28 days	Yes
Sick Leave	21 days	Yes
Maternity Leave	14 weeks	Yes

Payroll

Payroll Cycle

The payroll cycle is Monthly in Switzerland.

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Minimum Wage

The minimum wage varies per canton(district) and ranges from 19.20 CHF to 23.27 CHF

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Overtime Pay

The overtime must be compensated at a premium of 25% and must not exceed 2 hours a day.

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Health Examination Clause

Bonus

13th Month Pay

In Switzerland, the 13th month's pay is not mandatory however the employers may give incentive to their employees that is typically paid at the end of the year.

Employee Benefits

Swiss employees are entitled to benefits that their employers offer. Some of these are the following:

~Social Security
~Pension
~Accident Insurance
~Health Insurance

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Taxes

Employer Payroll Tax

Category	Fund	Capital
Old age, survivors’ and disability insurance	5.30%	No Cap
Unemployment Insurance	1.10%	148,200
Supplementary Unemployment Insurance	0.50%	Above 148,200
Family Compensation Fund	0%	No Cap
Occupational accident insurance	0.17% - 13.5%	148,200
Non-occupational accident insurance	1% - 4%	148,200
Occupational pension scheme	Depending on the pension plan, employer-specific
Medical insurance	Depending on the coverage, private insurance

Employee Payroll Tax

Category	Fund	Capital
Old age, survivors’ and disability insurance	5.30%	No Cap
Unemployment Insurance	1.10%	148,200
Supplementary Unemployment Insurance	0.50%	Above 148,200
Family Compensation Fund	1% - 3%	No Cap
Occupational accident insurance	0.17% - 13.5%	148,200
Non-occupational accident insurance	1% - 4%	148,200
Occupational pension scheme	Depending on the pension plan, employer-specific
Medical insurance	Depending on the coverage, private insurance

Employee Income Tax

For Single Direct Tax Payers

Annual Taxable Income	Tax Rate
0 to 14,500 CHF	0
14,500 to 31,600 CHF	0.77
31,600 to 41,400 CHF	0.88
41,400 to 55,200 CHF	2.64
55,200 to 72,500 CHF	2.97
72,500 to 78,100 CHF	5.94
78,100 to 103,600 CHF	6.60
103,600 to 134,600 CHF	8.80
134,600 to 176,000 CHF	11.00
176,000 to 755,200 CHF	13.20
Above 755,200	11.50

For Married/Single with Minor Children Direct Tax

Annual Taxable Income		Tax Rate
0 to 28,300 CHF		0
28,300 to 50,900 CHF		1%
50,900 to 58,400 CHF		2%
58,400 to 75,300 CHF		3%
75,300 to 90,300 CHF		4%
90,300 to 103,400 CHF		5%
103,400 to 114,700 CHF		6%
114,700 to 124,200 CHF		7%
124,200 to 131,700 CHF		8%
131,700 to 137,300 CHF		9%
137,300 to 141,200 CHF		10%
141,200 to 143,100 CHF		11%
143,100 to 145,000 CHF		12%
145,000 to 895,900 CHF		13%
895,900 CHF and Above		11.5%

For Single Zurich Cantonal tax

Annual Taxable Income		Tax Rate
0 to 6,700 CHF		0
6,700 to 11,400 CHF		2%
11,400 to 16,100 CHF		3%
16,100 to 23,700 CHF		4%
23,700 to 33,000 CHF		5%
33,000 to 43,700 CHF		6%
43,700 to 56,100 CHF		7%
56,100 to 73,000 CHF		8%
73,000 to 105,500 CHF		9%
105,500 to 137,700 CHF		10%
137,700 to 188,700 CHF		11%
188,700 to 254,900 CHF		12%
Above254,900 CHF		13%

For Married/Single with Minor Children Zurich Cantonal tax

Annual Taxable Income		Tax Rate
0 to 13,500 CHF		0
13,500 to 19,600 CHF		2%
19,600 to 27,300 CHF		3%
27,300 to 36,700 CHF		4%
36,700 to 47,400 CHF		5%
47,400 to 61,300 CHF		6%
61,300 to 92,100 CHF		7%
92,100 to 122,900 CHF		8%
122,900 to 169,300 CHF		9%
169,300 to 224,700 CHF		10%
224,700 to 284,800 CHF		11%
284,800 to 354,100 CHF		12%
Above 354,100 CHF		13%

Geneva Cantonal Tax

Annual Taxable Income		Tax Rate
0 to 17,663 CHF		0
17,664 to 21,281 CHF		8%
21,282 to 23,409 CHF		9%
23,410 to 25,537 CHF		10%
25,538 to 27,665 CHF		11%
27,666 to 32,985 CHF		12%
32,986 to 37,241 CHF		13%
37,242 to 41,498 CHF		14%
41,499 to 45,754 CHF		14.5%
45,755 to 73,420 CHF		15.%
73,421 to 120,238 CHF		15.5%
120,239 to 161,736 CHF		16%
161,737 to 183,017 CHF		16.5%
183,018 to 261,757 CHF		17%
261,758 to 278,782 CHF		17.5%
278,783 to 392,636 CHF		18%
392,637 to 615,022 CHF		18.5%
More than 615,022 CHF		19%

VAT

Switzerland levies a standard VAT of 7.7%

Offboarding & Termination

Termination Process

Switzerland practices the principle of freedom when choosing to terminate an employment contract. This means either party can terminate the contract - either on the grounds of statutory or notice period.

Notice Period

The notice period for termination for probationary employees ranges from 1 - 7 days and 1 - 3 months for regular employees.

Severance Pay

There is no statutory provision for severance pay in Switzerland. However, an exception is specified for employees over 50 years old who have worked for the same company for 20 years. According to the Code of Obligations, they are entitled to 2 months worth of salary as severance pay.

Visa and Immigration

There are two ways in which foreign workers may be allowed to work in Switzerland:

~If the foreign employee belongs to the European Union (EU) and/or the European Free Trade Association (EFTA), they are allowed to enter the country and seek for employment for 3 months which can be extended to 6 months if they can prove that they are actively looking for jobs within the country by registering at employment centers. Once they find a job, they can apply for a residence permit to stay in Switzerland.
~If the foreign employee does not come from EU/EFTA countries, they must first have a job offer from a Swiss employee. The employer applies for their residence visa while the foreign employee has to apply for a work visa.

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Talent Wiki - Switzerland

Supplementary Guide for Employment and Expansion in Switzerland