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Talent Wiki - Switzerland

Your quick guide on talent and labor compliance norms in Switzerland

Capital

Bern

Currency

Swiss Franc (CHF)

Languages

German, French, Italian, Romansh

Payroll Frequency

Monthly

GDP per Capita

$103,245.72

Employer Tax

8.07% - 23.4%

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 with world rank:

Eidgenössische Technische Hochschule Zürich – Swiss Federal Institute of Technology

RANKING

Local: 1

World : 52

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

RANKING

Local: 2

World : 146

University of Zurich

RANKING

Local: 3

World : 165

University of Geneva

RANKING

Local: 4

World : 184

University of Bern

RANKING

Local: 5

World : 225

Salary Data

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

Job Title Average Monthly Salary (CHF) Average Monthly Salary (USD)
Sales Manager 18,200 CHF 21,201 USD
Information Technology Manager 18,100 CHF 21,085 USD
General Manager 17,900 CHF 20,852 USD
Business Development Manager 17,500 CHF 20,386 USD
Business Analyst 12,700 CHF 14,794 USD
Project Manager 12,900 CHF 15,027 USD
Developer 9,460 CHF 11,020 USD

Talent Sourcing Tips

Top Local Job Boards:

Experteer, Job.ch, Jobscout24

Number of LinkedIn users:

3,820,000

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 2023

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
29 Mar Good Friday Common local holiday
1 Apr Easter Monday Common local holiday
4 Apr Näfels Procession Common local holiday
1 May May Day Common local holiday
1 May May Day (Half-Day) Half Day Holiday
9 May Ascension Day Common local holiday
20 May Pentecost Monday Common local holiday
30 May Corpus Christi Common local holiday
23 Jun Jura Independence Day Common local holiday
1 Aug Swiss National Day National holiday
15 Aug Assumption of Mary Common local holiday
5 Sep Genevese Fast Common local holiday
16 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.

Minimum Wage

The minimum wage varies per canton(district) and ranges from 19.00 CHF to 24 CHF.

Overtime Pay

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

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

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 1% – 3% No Cap
Occupational accident insurance 0.17% – 13.5% 148,200
Occupational pension scheme Depending on the pension plan, employer-specific No Cap

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
Non-occupational accident insurance 1% – 4% 148,200
Occupational pension scheme Depending on the pension plan, employer-specific No Cap
Medical insurance Depending on the coverage, private insurance No Cap

Employee Income Tax

For Single Direct Tax Payers

Annual Taxable Income Tax on Minimum Amount (CHF) Tax on excess (%)
0 to 17,800 CHF 0 0
17,800 to 31,600 CHF 0 0.77
31,600 to 41,400 CHF 131.65 0.88
41,400 to 55,200 CHF 217.90 2.64
55,200 to 72,500 CHF 582.20 2.97
72,500 to 78,100 CHF 1,096 5.94
78,100 to 103,600 CHF 1,428.60 6.60
103,600 to 134,600 CHF 3,111.60 8.80
134,600 to 176,000 CHF 5,839.60 11.00
176,000 to 755,200 CHF 10,393.60 13.20
Above 755,200 86,848 11.50

For Married/Single with Minor Children Direct Tax

Annual Taxable Income Tax on Minimum Amount (CHF) Tax on excess (%)
0 to 30,800 CHF 0 0
30,800 to 50,900 CHF 0 1%
50,900 to 58,400 CHF 226 2%
58,400 to 75,300 CHF 376 3%
75,300 to 90,300 CHF 833 4%
90,300 to 103,400 CHF 1,483 5%
103,400 to 114,700 CHF 2,138 6%
114,700 to 124,200 CHF 2,816 7%
124,200 to 131,700 CHF 3,481 8%
131,700 to 137,300 CHF 4,081 9%
137,300 to 141,200 CHF 4,585 10%
141,200 to 143,100 CHF 4,975 11%
143,100 to 145,000 CHF 5,184 12%
145,000 to 895,900 CHF 5,412 13%
895,900 CHF and Above 103,040 11.5%

For Single Zurich Cantonal tax

Annual Taxable Income Tax on Minimum Amount (CHF) Tax on excess (%)
0 to 6,700 CHF 0 0
6,700 to 11,400 CHF 0 2%
11,400 to 16,100 CHF 94 3%
16,100 to 23,700 CHF 235 4%
23,700 to 33,000 CHF 539 5%
33,000 to 43,700 CHF 1,004 6%
43,700 to 56,100 CHF 1,646 7%
56,100 to 73,000 CHF 2,514 8%
73,000 to 105,500 CHF 3,866 9%
105,500 to 137,700 CHF 6,791 10%
137,700 to 188,700 CHF 10,011 11%
188,700 to 254,900 CHF 15,621 12%
Above 254,900 CHF 23,565 13%

For Married/Single with Minor Children Zurich Cantonal tax

Annual Taxable Income Tax on Minimum Amount (CHF) Tax on excess (%)
0 to 13,500 CHF 0 0
13,500 to 19,600 CHF 0 2%
19,600 to 27,300 CHF 122 3%
27,300 to 36,700 CHF 353 4%
36,700 to 47,400 CHF 729 5%
47,400 to 61,300 CHF 1,264 6%
61,300 to 92,100 CHF 2,098 7%
92,100 to 122,900 CHF 4,254 8%
122,900 to 169,300 CHF 6,718 9%
169,300 to 224,700 CHF 10,984 10%
224,700 to 284,800 CHF 16,434 11%
284,800 to 354,100 CHF 23,045 12%
Above 354,100 CHF 31,361 13%

Geneva Cantonal Tax

Annual Taxable Income Tax Rate (%)
0 to 17,748 CHF 0
17,749 to 21,383 CHF 8%
21,384 to 23,522 CHF 9%
23,523 to 25,660 CHF 10%
25,661 to 27,798 CHF 11%
27,799 to 33,144 CHF 12%
33,145 to 37,421 CHF 13%
37,422 to 41,698 CHF 14%
41,699 to 45,975 CHF 14.5%
45,976 to 73,773 CHF 15.%
73,744 to 120,817 CHF 15.5%
120,818 to 162,514 CHF 16%
162,515 to 183,898 CHF 16.5%
183,899 to 263,017 CHF 17%
263,018 to 280,124 CHF 17.5%
280,125 to 394,525 CHF 18%
394,526 to 617,982 CHF 18.5%
More than 617,982 CHF 19%

VAT

Switzerland levies a VAT ranging between 2.5% and 7.7%

Offboarding & Termination

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.

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

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.

Streamline payroll and compliance for your international workforce

Payroll

Minimum Wage

Overtime Pay

Visa & Immigration