Can you hire employees in Switzerland without a legal entity?

Yes, through an Employer of Record (EOR). The EOR becomes the legal employer in Switzerland, handling contracts, payroll, taxes, and social security, while you manage the employee’s day-to-day work.

How long does it take to hire employees in Switzerland?

Typically 1–2 weeks through an EOR, depending on role and documentation.

What employment contracts are required in Switzerland?

Employment contracts must clearly outline salary, working hours, benefits, and notice periods. They are usually provided in a local language (German, French, or Italian).

Can a PEO help hire contractors in Switzerland?

Yes, but Switzerland has strict classification rules. Misclassification can lead to fines and back payments, so many companies use an EOR instead.

How does payroll work in Switzerland?

Payroll is usually monthly and includes: Gross salary Income tax (if applicable) Social security (AHV, pension, unemployment) An EOR manages all calculations and filings.

How often are employees paid in Switzerland?

Employees are typically paid monthly, often with a 13th-month salary included in contracts.

Does a PEO/EOR manage taxes and social contributions?

Yes, PEO/EOR manages: AHV/AVS (social security) Unemployment insurance Pension contributions Withholding tax where applicable

Can payroll be run in local currency?

Yes, Swiss payroll is run in Swiss francs (CHF).

Is using an Employer of Record legal in Switzerland?

Yes, EORs are a compliant way to hire without setting up a local entity, as they act as the legal employer.

What labour laws apply to foreign companies hiring in Switzerland?

Swiss labour law applies in all cases, including: Contracts and working conditions Social security and benefits Termination rules Cantonal regulations (vary by region)

What are the risks of misclassification in Switzerland?

Misclassification can result in: Back payments of contributions Penalties and fines Legal disputes Switzerland enforces strict compliance.

Is there a minimum wage in Switzerland?

There is no national minimum wage. Salaries are set by canton or industry agreements.

Do employment laws vary by region?

Yes, Switzerland has 26 cantons, and tax rates, benefits, and allowances can differ significantly by location.

PEO & EOR services · Switzerland

Hire employees in Switzerland with an Employer of Record

Hiring in Switzerland through an EOR does not require setting up a local legal entity. EuroDev becomes the legal employer running payroll and compliance while you keep full operational control.

✓ No entity required

✓ Full compliance managed

✓ Ongoing HR support

Talk to our EOR experts today →

SWITZERLAND · EMPLOYER COST SNAPSHOT

Avg. annual gross salary CHF 85,000

Employer contributions ≈ 12%–18%

Statutory annual leave 20 days

Standard work week 40–42 hrs

Source: EuroDev EOR payroll data for Switzerland, 2026.

PEO & EOR services · Switzerland

How hiring in Switzerland through EuroDev works

An Employer of Record lets your company hire in Switzerland without establishing a Swiss subsidiary or branch. EuroDev becomes the legal employer, while your company retains day-to-day operational direction.

Employee selection

You select the candidate you want to hire in Switzerland.

Contract setup

EuroDev drafts a locally compliant contract, aligned with labor law

cantonal requirements, and applicable collective bargaining agreements.

Payroll & tax

We run monthly payroll and

including income tax withholding where applicable, pension administration, and social insurance contributions.

Ongoing compliance

Employment administration,

onboarding, statutory leave, employee lifecycle management, benefits, and labor law compliance are managed continuously.

The decision

Direct expansion vs. partner-led market entry

Both paths are legitimate. The right one depends on how fast you need to move and how permanent your presence in Switzerland will be.

Most chosen

Employer of Record

When an EOR is the right choice

✓ You want to expand into Switzerland quickly

✓ You are testing the Swiss market before long-term investment

✓ You plan to hire a small or remote team

✓ You want to reduce employment and payroll compliance risk

Local Entity

When a local entity makes sense

✓ You are building a large, long-term workforce in Switzerland

✓ You require a permanent commercial presence

✓ You want to manage payroll and HR internally

Employment contracts

Permanent and fixed-term contract rules

Switzerland assumes employment is indefinite by default - fixed-term contracts are permitted but repeated fixed-term contracts can be challenged if used to avoid employee protections.

Contract type · default

Permanent (indefinite)

✓ No predefined end date

✓ Statutory employment rights apply

✓ Termination is generally possible with notice, without needing a formal cause

✓ Statutory notice periods apply unless validly modified

✓ Probation permitted within legal limits

Contract type · limited use

Fixed-term (temporary)

✓ Only for temporary needs, project-based work, replacement roles, or other defined periods

✓ The contract must have a defined end date or objective end point

✓ Normally ends automatically at expiry without notice

✓ May convert to indefinite if employment continues after the fixed term without objection

✓ Repeated fixed-term contracts can be challenged if used to avoid employee protections

Termination, notice & severance

Switzerland has strong employee protection laws

Employment ”at will” does not apply when hiring through an EOR in Switzerland.
EuroDev guides you through termination procedures to ensure compliance.

7 days

Notice during probation

1–3 mo.

Statutory notice after probation

(depending on length of service)

Probation

Probation periods

Unless otherwise agreed, the probation period is one month, but may be extended to a maximum of three months in the employment contract. Either party may terminate with seven days’ notice during probation, provided the termination is not discriminatory or abusive.

In practice

Notice & severance in practice

Notice may be extended by contract or collective agreement, and payment in lieu is permitted. Immediate termination without notice is allowed for serious misconduct, and no general statutory severance entitlement applies to ordinary dismissals. Severance may apply if agreed contractually or under a collective agreement.

Payroll & employer costs

What hiring through an EOR costs in Switzerland

Employer costs typically run around 12%–18% on top of gross salary - covering all mandatory employer social contributions and statutory insurance costs.

Cost example

Estimated annual employment cost

Average annual gross salary CHF 85,000

Employer contributions (≈ 12%–18%) CHF 10,200–CHF 15,300

Estimated total employment cost CHF 95,200–CHF 100,300

Contribution breakdown

Mandatory employer contributions

Old Age & Survivors Insurance / Disability Insurance (AHV/IV/EO)

~5.3%

Unemployment insurance (ALV)

~1.1%

Occupational pension contributions (BVG)

~5%–10%

Family allowance contributions

~1%–3% (depending on canton)

Accident insurance

Variable depending on role and insurer

Total estimated

~12%–18%

Registration

Social security registrations

✓ Registration with Swiss social security authorities

✓ Monthly payroll and contribution reporting

✓ Withholding employee contributions

✓ Paying employer social security contributions and insurance contributions

Working time

Working hours & overtime

✓ Standard schedule: 40–42 hours/week

✓ Legal working time: 45 hours/week for office, technical, and industrial employees; 50 hours/week for other sectors

✓ Usually governed by collective agreements (CBAs)

✓ Compensated financially or with equivalent time off

Paid leave & public holidays

Statutory leave entitlements in Switzerland

EuroDev ensures every leave entitlement is tracked and administered correctly, from vacation days to parental leave.

Vacation

Annual leave

20 days

✓ Minimum: 20 working days per year

✓ One period must be at least two consecutive weeks

Statutory

Public holidays

8-12 days

✓ Approximately 8–12 public holidays per year, depending on the canton

✓ Switzerland has 1 federal public holiday, Swiss National Day

Parental leave

Maternity leave

14 weeks

✓ Leave begins immediately after childbirth

✓ Paid at 80% of the employee’s average salary

✓ Subject to a statutory cap of CHF 220 per day

✓ Employer top-up not mandatory unless required

Parental leave

Paternity leave

2 weeks

✓ 10 working days

✓ Can be taken in one block or as individual days

✓ Must be taken within 6 months after birth

✓ Paid at 80% of the employee’s average

salary

Ready when you are

Hire employees in Switzerland with confidence

Local expertise · Global support

EuroDev helps international companies hire in Switzerland quickly, compliantly, and without unnecessary risk whether you're onboarding your first employee or expanding an existing team.

Talk to our EOR experts → Explore EOR services

What happens after you contact us? +

1 Share your hiring needs and expected timeline.

2 Receive a compliant employment setup plan.

3 Start contract preparation and employee onboarding.

FAQ's

: Yes, through an Employer of Record (EOR). The EOR becomes the legal employer in Switzerland, handling contracts, payroll, taxes, and social security, while you manage the employee’s day-to-day work.
: Typically 1–2 weeks through an EOR, depending on role and documentation.
: Employment contracts must clearly outline salary, working hours, benefits, and notice periods. They are usually provided in a local language (German, French, or Italian).
: Yes, but Switzerland has strict classification rules. Misclassification can lead to fines and back payments, so many companies use an EOR instead.
: Payroll is usually monthly and includes:

Gross salary

Income tax (if applicable)

Social security (AHV, pension, unemployment)
An EOR manages all calculations and filings.
: Employees are typically paid monthly, often with a 13th-month salary included in contracts.
: Yes, PEO/EOR manages:

AHV/AVS (social security)

Unemployment insurance

Pension contributions

Withholding tax where applicable
: Yes, Swiss payroll is run in Swiss francs (CHF).
: Yes, EORs are a compliant way to hire without setting up a local entity, as they act as the legal employer.
: Swiss labour law applies in all cases, including:

Contracts and working conditions

Social security and benefits

Termination rules

Cantonal regulations (vary by region)
: Misclassification can result in:

Back payments of contributions

Penalties and fines

Legal disputes
Switzerland enforces strict compliance.
: There is no national minimum wage. Salaries are set by canton or industry agreements.
: Yes, Switzerland has 26 cantons, and tax rates, benefits, and allowances can differ significantly by location.