Switzerland
Employer of Record & PEO in Switzerland
Hire & manage teams remotely in Switzerland without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.
Native Language
Romansh, German, French, Italian
GDP
$810.83 billion
Payroll Frequency
Monthly
Capital city
Bern
GDP per capita
$93,515
Internet
Fast
Currency
Swiss Franch (CHF)
Timezone
UTC +1
English Speaking
>50%
Population
8.76 Million
Employment Cost
High
Cost of Living
High
How NNRoad Employment & PEO Services Work?
NNRoad provides professional employment organization (PEO) & employer of record (EOR) services for companies looking to hire and manage teams in Switzerland. Registering a legal entity in Switzerland as a means for employment is an outdated practice that takes both time (months) and money (thousands of USD). NNRoad’s employer of record and PEO services enables companies to hire and manage employees in Switzerland in full accordance with local labor laws in under a week.
Employer of Record in Switzerland
Employer of Record (EOR) services are for companies who do not have a legal entity in Switzerland, but who want to hire in Switzerland. Employment and full liability are outsourced to NNRoad.
➊ You interviews & select the candidates you want to hire in Switzerland.
➋ NNRoad arranges a local labor contract with your new employee.
➌ NNRoad arranges a service contract between your organization & NNRoad.
➍ NNRoad organizes, manages & processes payroll in Switzerland in full compliance with local employment laws.
➎ You maintain a normal working relationship and manage your team in Switzerland while NNRoad manages payroll & HR liabilities.
Payroll & PEO in Switzerland
Professional Employment Organization (PEO) services are for companies who have a legal entity in Switzerland, and want to outsource their payroll. Employment liabilities are shared between your organization and NNRoad.
➊ You interviews & select the candidates you want to hire in Switzerland.
➋ NNRoad organizes, manages and processes payroll for your local employees in full compliance with local employment laws.
➌ You maintain a normal working relationship and manage your team in Switzerland while NNRoad manages payroll & HR compliance.
Advantages of NNRoad's Switzerland Employment Services
- With EOR/PEO solutions you can manage client meetings, sales, quality control, marketing, R&D and customer support without a local company in Switzerland.
- Pay as you go
- Dedicated account manager – One point of contact for multiple locations
- Employment & termination processing
- Complete payroll solution and statutory benefit according to local laws
- With EOR/PEO solutions you can hire staff while waiting for the registration of your company in Switzerland.
- NNRoad only works with professional locally licensed partners
- GDPR compliant
- NNRoad manages employee record timekeeping, bonus and allowance, expenses claims and personal leaves according to local law.
- NNRoad provides foreigner VISA application services, if needed
Employment Compliance in Switzerland
Taxes & Payroll in Switzerland
Tax Brackets (single taxpayers)
0 – 14,500 CHF: 0%
14,500 – 31,600 CHF: 0.77%
31,600 – 41,400 CHF: 0.88%
41,400 – 55,200 CHF: 2.64%
55,200 – 72,500 CHF: 2.97%
72,500 – 78,100 CHF: 5.94%
78,100 – 103,600 CHF: 6.60%
103,600 – 134,600 CHF: 8.80%
134,600 – 176,000 CHF: 11%
176,000 – 755,200 CHF: 13.20%
Over 755,200 CHF: 11.50%
Tax Brackets (married taxpayers and single taxpayers with minor children)
0 – 28,300 CHF: 0%
28,300 – 50,900 CHF: 1%
50,900 – 58,400 CHF: 2%
58,400 – 75,300 CHF: 3%
75,300 – 90,300 CHF: 4%
90,300 – 103,400 CHF: 5%
103,400 – 114,700 CHF: 6%
114,700 – 124,200 CHF: 7%
124,200 – 131,700 CHF: 8%
131,700 – 137,300 CHF: 9%
137,300 – 141,200 CHF: 10%
141,200 – 143,100 CHF: 11%
143,100 – 145,000 CHF: 12%
145,000 – 895,900 CHF: 13%
Over 895,900 CHF: 11.50%
Employer Costs in Switzerland
The employer must pay at least 50% of the total contributions. Savings contributions range from 7% to 18% of covered pay depending on age.
Employees Age | Saving Contributions |
25-34 | 7% |
35-44 | 10% |
45-54 | 15% |
55-64/65 | 18% |
Working Hours in Switzerland
Swiss law sets a maximum work week of 45 hours for industrial workers, office workers, technicians, and other employees, including salespeople in large retail operations. For other workers the maximum working hour is 50 hours.
Mandatory Contributions in Switzerland
Social Security System
- Old age and surviving dependents’ insurance (AHV)
- Invalidity insurance (IV)
The employer and employee equally finance it. The contribution is 10.60% (2021) from the total earnings without any salary ceiling.
Occupational Benefits: consists of employer sponsored pension coverage, including the mandatory pension plan (BVG).
Termination Laws and Severance Pay in Switzerland
Notice period is agreed in the employment contract. Unless stated otherwise in your employment contract (or collective employment contract), the following notice periods apply:
- Probation period: 7 calendar days
- First year of employment: 1 month, to the last day of the termination month (e.g., If employment is terminated on 4 March, your contract will end on 30 April)
- 2 – 9 years of employment: 2 months.
- 10 + years of employment onwards: 3 months.
A fixed-term contract automatically ends on the agreed date and generally cannot be terminated in advance except in special cases or if the contract states likewise. Employer and employee can end a fixed-term contract early if mutually agreed and in accordance with the law.
Employers cannot fire employees who are unable to work due to illness or accident. Employees receive temporary protection from termination during this time, specifically:
- 30 days in the 1st year of work
- 90 days from the 2nd through 5th year
- 180 days starting in the 6th year
The same protections apply during pregnancy and for 16 weeks after giving birth. The employer must always wait until the employee has returned to work before informing them of their dismissal.
Holidays in Switzerland
Paid Leave in Switzerland
The minimum number of holidays in Switzerland is four weeks (20 days) per year or five weeks for those under the age of 20.
However, individual or collective contracts can provide for a higher number of annual days. Employees over 50 years of age are often granted more paid leave.
Employment Contract in Switzerland
Full-time or part-time work and can be concluded for an indefinite duration or for a fixed term.
Probation period
The probation period for open-ended contracts lasts one month, the employer may offer a shorter or longer time (up to a maximum of three months), in which a written agreement must be made between the employee and employer.
There is no probation period required for fixed-term contracts, but the employee and employer may agree to have one.
Types of Leaves in Switzerland
Sick Leave
If the employment contract does not provide for any daily insurance benefits, under standard or collective bargaining agreements, the employer pays three weeks’ salary during the first year, the salary for a longer period fixed fairly, taking account of the duration of working relations and the specific circumstances.
The employment contract does provide for daily insurance benefits for both parties. This scenario is common practice. Most daily insurance benefits in the case of illness confer entitlement to at least 80% of salary for 720 or 730 days over a period of 900 days.
Maternity and Paternity Leave
The female employee is entitled to maternity leave of at least 14 weeks (or 98 days) after delivery During this period, the employer must pay 80% of the salary. During pregnancy and the first few months following the delivery, the female employee is protected by law against dismissal. They also benefit from maternity insurance.
The federal law does not provide for the right to paternity leave.
Immigration Laws in Switzerland
Any foreigner coming to work in Switzerland will need their prospective employer to contact the Office Cantonal de la Population et des Migrations (OCPM) to obtain a residence permit.
When your employees apply for a Swiss visa, they are actually getting a Schengen visa. This document allows employees to travel through any Schengen country. If you’re hiring EU/EFTA citizens, they can apply for one of the following options:
- Permit L: This permit suits short-term residents who want to live in Switzerland for less than a year. Applicants will need an employment contract valid for three to 12 months, and the visa will match that length.
- Permit B: Expats who want to live in Switzerland for longer than a year can apply for a B permit if they have an employment contract lasting at least 12 months.
- Permit G: Cross-border commuters who work in Switzerland but live in another EU/EFTA country are eligible for a G permit. They must return to their main place of residence at least once a week.
