Looking for a PEO and EOR service provider in Switzerland? You've knocked on the right door! Our European PEO and EOR solutions help companies hire employees in Switzerland without establishing a legal entity. Hiring and employment in Switzerland can be complex as a foreign employer. We're here to guide you. EuroDev is the leading provider of EOR & PEO solutions in Europe. We partner with North American businesses that want to expand their business into Europe, including Switzerland. What should be taken into account when employing or hiring in Switzerland?

How it works - PEO in Switzerland & EOR in Switzerland 

An Employer of Record (EOR) or Professional Employer Organization (PEO) is a company or organization that is legally responsible for paying employees, including dealing with employee taxes, benefits & insurances. As the EOR/PEO of your European or Swiss employees, we provide you with tailored payroll, HR, and compliance services. Through this construction, we decrease all the complications such as compliance issues, setting up a foreign establishment, and setting up employment contracts in a different language. 

Benefits of a PEO in Switzerland & EOR in Switzerland

  • Expand without an entity 
  • Flexible and cost-effective solution to outsource payroll and HR functions for international expansion 
  • In compliance with foreign local laws & regulations 
  • Minimizes employment liabilities and risks 
  • Reduced risk, as the risks of being an employer fall almost completely on the employer of record 
  • Saves you time to focus on your core business 
  • You manage your employees 
  • EOR and /or PEO takes care of registration and contact with local authorities

Employment Contracts Switzerland

An employment contract is an agreement between an employee and an employer containing the conditions of employment. The most common employment contract in Switzerland is the indefinite employment contract, as in most European countries. Fixed-term contracts are of course also known. In the employment contract, it is important to state the employee's remuneration, benefits, and expected weekly working hours. Furthermore, the employment contract should contain a language in which the employee will be working. In Switzerland, multiple languages are spoken including German, Italian, Frech, and Romansh.

The employer and employee may agree that the first three months of an employment contract is a trial period. During this trial period, either party may terminate the employment at any time.

PEO and EOR service providers in Switzerland will support you with the set-up of a local employment contract.

Employment Termination Switzerland - Notice Period Switzerland

In Switzerland, an employer can terminate a contract for any reason as long as it is not discriminatory or abusive.
However, termination is restricted or forbidden when an employee is unsuitable for work due to an accident or illness for a limited length of time growing with seniority (30 to 180 days), pregnant or in military duty, and within the first 16 weeks after giving birth.

The dismissal must be explained when the other party demands it. The following are the statutory notice periods:

  • 7 days during the trial period
  • 1 month during the 1st year of service
  • 2 months during the 2nd to the 9th year of service
  • 3 months from the 10th year of service

Alternatively, the parties can contractually agree on a notice period. A fixed-term employment contract terminates when the agreed-upon duration expires.

Social Security for Employers in Switzerland 

In Switzerland, both the employer and the employee pay social security contributions. On average, employers have to pay 9.5% social contribution to the local authorities. 

Employer Payroll (Social Security) Contributions %
Disability Insurance 5.30%
Unemployment Insurance (up to $160.000) 1.10%

Supplementary Unemployment insurance (>$160.000

0.50%
Family compensation fund 2.45%
Maternity insurance 0.043%
(Early) Childhood contribution 0.07%
Total Additional Employment Costs 9.463%

 

Average Salary Switzerland & Average Employer Costs Switzerland

In 2020, the average salary in Switzerland was CHF 76248, which is equivalent to 82.464,50 USD. This is higher than the average annual salary in the United States, which is $65,835.58 USD. As an employer, the actual employer costs are approximately 9.463% higher than the gross annual salary in Geneva and 8.07% to 23.40% higher in Zurich. Based on an annual salary of 82.464,50 USD, employment costs would be USD 90,268.12 in Geneva and from USD 89,119.38 to USD 101,761.19 in Zurich. 

To learn more about the average salaries in Europe and the actual employment costs in Europe, we invite you to read this article on the Costs of hiring European employees.

Working Hours Switzerland

Working hours in Switzerland vary depending on the company, the employee's position, and the sector. Under Swiss employment law, normal working hours should be a maximum of 45 hours per week. Employees in industry work around 40 hours per week, while workers in the service sector, such as banking, generally work slightly longer hours (around 42 per week).

Overtime labor is paid at a rate of 125 percent of regular pay, or time off is offered in place of payment.

Paid Vacation Leave Switzerland

In Switzerland, paid leave is defined as a minimum of four weeks of paid vacation every year following the completion of one year of employment. This is expanded to 5 weeks of paid annual leave for employees under the age of 20.

To learn more about the average paid vacation days in Europe and how Switzerland compares to the rest of Europe, we invite you to read our blog on paid vacation days in Europe.

Public Holidays Switzerland 

Aside from the usual national holidays, each canton and area in Switzerland has its own set of holidays and events. The most important public holidays, when most Swiss employees have the day off, are listed below. If a public holiday falls on a non-working day, such as a Saturday or Sunday, employees cannot redeem the holiday time during the week. A public holiday that falls during an employee's vacation, on the other hand, does not count as a vacation day. 

  • New Year's Day - 1 January
  • Easter - 17 April
  • Easter Monday - 18 April 
  • Ascension Day - 26 May
  • Whit Sunday - 5 June
  • Whit Monday - 6 June
  • Swiss National Holiday - 1 August
  • Christmas day - 25 December
  • Boxing Day - 26 December

Add 2022 Switzerland Public Holidays to your calendar

Maternity and Paternity Leave Switzerland 

Pregnant employees who have contributed to the Office for Social Insurance for at least nine months before the due date are entitled to 14 weeks of maternity leave. The maternity allowance is provided in the form of a daily payment at 80% of regular income for 14 weeks, paid by federal insurance. Employees within the canton of Geneva are entitled to two additional weeks, giving them a total of 16 weeks of maternity leave.

Fathers are entitled to 10 and 14 days of leave in the cantons of Geneva and Zurich, respectively. Paternity leave can be used in a single period or as individual days, but it must be used within six months of the child's birth. Paternity leave benefits are equal to 80% of the employee's average pay prior to the baby's birth and capped at 196 CHF (USD 211,53) per day. 


Learn more about PEO and EOR in Europe:

Get in contact or request a quote

 

Learn more about PEO and EOR in other European countries:


EuroDev-United-Kingdom-PEO-EOR

PEO and EOR in
the UK

Currency: Pound Sterling (GDP)
Payroll Frequency: Monthly
Employer Taxes: 13.80%

EuroDev-Germany-PEO-EOR

PEO and EOR in
Germany
 

Currency: Euro (EUR)
Payroll Frequency: Monthly
Employer Taxes: 19% - 20%

EuroDev-Italy-PEO-EOR

PEO and EOR in
Italy
 

Currency: Euro (EUR)
Payroll Frequency: Monthly
Employer Taxes: 29% - 32%

EuroDev-France-PEO-EOR-1

PEO and EOR in
France 

Currency: Euro (EUR)
Payroll Frequency: Monthly
Employer Taxes: 40% - 50%

EuroDev-Netherlands-PEO-EOR

PEO and EOR in
Netherlands

Currency: Euro (EUR)
Payroll Frequency: Monthly
Employer Taxes: 23.59%

EuroDev-Spain-PEO-EOR

PEO and EOR in
Spain

Currency: Euro (EUR)
Payroll Frequency: Monthly
Employer Taxes: 29.90%

EuroDev-Poland-PEO-EOR

PEO and EOR in
Poland

Currency: Polish Złoty (PLN)
Payroll Frequency: Monthly
Employer Taxes: 19.48% - 22.14%

EuroDev-Denmark-PEO-EOR

PEO and EOR in
Denmark

Currency: Danish Kronne (DKK)
Payroll Frequency: Monthly
Employer Taxes: 14,892 DKK per year

EuroDev-Ireland-PEO-EOR

PEO and EOR in
Ireland

Currency: Euro (EUR)
Payroll Frequency: Monthly
Employer Taxes: 15.05%

EuroDev-Portugal-PEO-EOR

PEO and EOR in
Portugal

Currency: Euro (EUR)
Payroll Frequency: Monthly
Employer Taxes: 26.50%

EuroDev-Belgium-PEO-EOR

PEO and EOR in
Belgium

Currency: Euro (EUR)
Payroll Frequency: Monthly
Employer Taxes: 25% - 27%

EuroDev-Slovenia-PEO-EOR

PEO and EOR in
Slovenia

Currency: Euro (EUR)
Payroll Frequency: Monthly
Employer Taxes: 16.10%

EuroDev-Greece-PEO-EOR

PEO and EOR in
Greece

Currency: Euro (EUR)
Payroll Frequency: Monthly
Employer Taxes: 22.54%

EuroDev-Austria-PEO-EOR

PEO and EOR in
Austria

Currency: Euro (EUR)
Payroll Frequency: Monthly
Employer Taxes: 21.23%

EuroDev-Finland-PEO-EOR

PEO and EOR in
Finland

Currency: Euro (EUR)
Payroll Frequency: Monthly
Employer Taxes: 19.85% - 21.25%

EuroDev-Croatia-PEO-EOR

PEO and EOR in
Croatia

Currency: Croatian Kuna (HRK)
Payroll Frequency: Monthly
Employer Taxes: 16.50%

Interested in European expansion? Exciting! I am looking forward to discussing your European HR needs.

Monique Ramondt Sanders

Executive Vice President | HR Outsourcing