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Switzerland

Basic Economic Summary

Overview

The volatile world market has brought a major challenge for hiring talented professionals. More importantly, the method of daily operations has evolved to suit future trends and ensure more dynamic and safer working conditions. According to reports, the role of HR professionals has changed drastically since the beginning of 2021. In addition to organisational agility and flexible working patterns, focus has increased regarding upskilling, enhancing employee experience, understanding corporate responsibilities and welcoming a sustainable change.

The increasing number of Swiss students inducted into apprenticeship right after university has earned the country the top spot in IMD World Talent Ranking. Thanks to the high quality of life and remuneration, Switzerland has attracted a lot of foreign labour and looks to translate this feat into economic success.

Basic Information

  • Local Languages: German, French, Italian, English
  • Major Economic Hubs: Zurich, Bern, Geneva, Basel, Grindelwald
  • Capital: Bern
  • Currency: Swiss Franc
  • Population: 8.74 million
  • Date Format: dd/mm/yyyy

Useful Information

  • GDP Per Capita (in USD, 2020): 87,366.60
  • Exchange Rate (CHf/USD): 1.09
  • PISA Ranking (2018): No overall score (11th in Mathematics, 24th in Science, 28th in Reading

Local Universities

Top Local Universities

University Rankings
ETH Zurich - Swiss Federal Institute of Technology Ranking in Switzerland: 1, World Ranking: 53
Swiss Federal Institute of Technology in Lausanne Ranking in Switzerland: 2, World Ranking: 175
University of Geneva Ranking in Switzerland: 3, World Ranking: 196
University of Zurich Ranking in Switzerland: 4, World Ranking: 218
University of Bern Ranking in Switzerland: 5, World Ranking: 237

Salary Data

Average Salary of Jobs (Per Month)

Job Title Average Salary Range (CHF) Average Salary Range (USD)
Surgeon/Doctor 17,000 - 54,083.33 18497.85 - 58848.56
Judge 14,500 - 46,250 15777.58 - 50325.04
Lawyer 9,416.66 - 32,416.66 10246.35 - 35272.86
Bank Manager 10,750 - 37,000 11697.17 - 40260.03
Chief Executive Officer 11,500 - 39,666.66 12513.25 - 43161.65
Chief Financial Officer 11,583.33 - 34,083.33 12603.93 - 37086.38

Talent Sourcing Tips

Taxes

Employer Payroll Tax

The employer payroll tax is calculated as follows:

Category Rate Cap
Old age, survivors’ and disability insurance 5.3% No cap
Unemployment Insurance 1.1% 148,200
Supplementary Unemployment Insurance 0.5% above 148,200
Family Compensation Fund 1-3% No cap
Occupational accident insurance 0.17 to 13.5% 148,200
Non-occupational accident insurance 1 to 4% 148,200
Occupational pension scheme Depending on pension plan, employer specific
Medical insurance Depending on coverage, private insurance

Employee Payroll Tax

The employee payroll tax is calculated as follows:

Category Rate Cap
Old age, survivors’ and disability insurance 5.3% No cap
Unemployment Insurance 1.1% 148,200
Supplementary Unemployment Insurance 0.5% above 148,200
Family Compensation Fund 0% No cap
Occupational accident insurance 0% 148,200
Non-occupational accident insurance 1 to 4% 148,200
Occupational pension scheme Depending on pension plan, employer specific
Medical insurance Depending on coverage, private insurance

Employee Income Tax

Income tax is levied as follows:

Single Married
Rate Amount Rate Amount
0% Less than 6,700.00 CHF 0% Less than 13,500.00 CHF
2% 6,700.00 CHF - 11,400.00 CHF 2% 13,500.00 CHF - 19,600.00 CHF
3% + 94 CHF 11,400.00 CHF - 16,100.00 CHF 3% 19,600.00 CHF - 27,300.00 CHF + 122.00 CHF
4% + 235 CHF 16,100.00 CHF - 23,700.00 CHF 4% 27,300.00 CHF - 36,700.00 CHF + 353.00 CHF
5% + 539 CHF 23,700.00 CHF - 33,000.00 CHF 5% 36,700.00 CHF - 47,400 CHF + 729.00 CHF
6% + 1,004 CHF 33,000.00 CHF - 43,700.00 CHF 6% 47,400.00 CHF - 61,300.00 CHF + 1,264.00 CHF
7% + 1,646 CHF 43,700.00 CHF - 56,100.00 CHF 7% 61,300.00 CHF - 92,100.00 CHF + 2,098.00 CHF
8% + 2,514 CHF 56,100.00 CHF - 73,000.00 CHF 8% 92,100.00 CHF - 122,900.00 CHF + 4,254.00 CHF
9% + 3,866 CHF 73,000.00 CHF - 105,500.00 CHF 9% 122,900.00 CHF - 169,300.00 CHF + 6,718.00 CHF
10% + 6,791 CHF 105,500.00 CHF - 137,700.00 10% 169,300.00 CHF - 224,700.00 CHF + 10,894.00 CHF
11% + 10,011 CHF 137,700.00 CHF - 188,700.00 CHF 11% 169,300.00 CHF - 224,700.00 CHF +10,894 CHF
12% + 15,621 CHF 188,700.00 CHF - 254,900.00 CHF 12% 284,800.00 CHF - 354,100.00 CHF + 23,045.00 CHF
13% + 23,565 CHF 254,900.00 CHF and above 13% Over 354,100.00 CHF + 31,361.00 CHF

Minimum Wage & Payroll

Minimum Wage

There is no official minimum wage in Switzerland.

Payroll Cycle

The employee must be paid monthly.

Bonus

13th month salary

Employers in Switzerland pay their employees salary in 13 installments. They are given 2 months salary in December.

Working Hours & Statutory Leave

Working hours

The standard number of working hours in Switzerland is upto 45 hours a week.

Overtime pay

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

Public Holidays

Number of national holidays is 6 days. However, there are also quite a few regional holidays. The list of holidays can be found here.

Leaves

Annual Paid Leave

Employees in Switzerland are entitled to four week of paid annual leave per year. On the other hand, younger employees, below the age of 20 are entitled to five weeks of paid annual leave.

Sick Leave

Under the Swiss law, employees who are in their first year are entitled to paid sick leave for for up to three weeks and at a full pay proportionate to longer periods of employment.

Parental Leave

Maternity Leave in Switzerland is given for a period of 14 weeks after the birth of the child. Mothers receive 80% of their wages during this leave.

Paid Paternity Leave is also given to fathers for a period of two weeks



Offboarding & Termination

Termination Process

In Switzerland, either party can terminate the contract - either on the grounds of statutory or notice period.

Notice Period

There is a 7 day notice period given to the party during the probation period. Alternate arrangements of notice period may also be stated in the employment contract.

Severance Pay

No statutory provision for severance pay in Switzerland.

Probation period

The probation period in Switzerland is between one to three months.

VAT

Switzerland levies a standard VAT of 7.7%

Any queries or suggestions?
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