Hiring in Switzerland: A 10-Step Admin Checklist for Employers, From Contracts to Salary Statements

A startup in Switzerland that signs its first employee takes on ten separate administrative tasks, and a guide published by Le News on 18 March 2024 lays them out in order. The piece is sponsored content, brought to readers by quitt.business, a digital service that offers to handle the paperwork. That framing matters, because the guide repeatedly notes that each step can be done manually or handed to the company.

The first task is the employment contract. Swiss law allows one to be concluded tacitly, orally or in writing, but the guide recommends writing it down to reduce the chance of later disputes, especially since an employee can request one at any time. At a minimum it should name employer and employee with their addresses, describe the duties, give the start date and duration, and set out gross salary, monthly deductions, allowances and whether a 13th month is paid. It should also cover working hours, overtime and night work, the notice period for termination (the law sets minimums), and vacation, public holidays, rest days and educational leave. Companies bound by a collective employment contract (GAV/CGT) must follow its terms, and anyone hired under 18 needs a written declaration of consent from a parent or legal guardian.

Second comes social security, paid through one of the many administering organisations to fund state pensions (1st pillar, AHV/AVS) and disability benefits. The total is 10.6% of gross pay, split evenly: half deducted from the employee, half paid by the employer on top of gross salary. Unemployment insurance adds 2.2%, again split 1.1% each. It is not charged on salary above CHF 148,200 a year, a ceiling last updated on 1 January 2024. A further levy funds family allowances and varies by canton. These obligations run from the start of the calendar year after an employee turns 18 until they stop working, and the employer must make the deductions and pay them to the compensation fund.

Third is the occupational, or 2nd pillar, pension. Employers must enrol any employee earning more than CHF 22,050 a year. Monthly deductions are invested to provide savings and income in case of sickness, accident or disability, and their size depends on age, salary and the chosen plan. The same age rule applies as for social security.

Fourth, accident insurance. Known as UVG/LAA, it is compulsory and covers both work and non-work accidents for anyone employed more than eight hours a week by a single employer. Supplementary insurance is optional, but the guide argues it is often worthwhile: employers are legally obliged to keep paying wages for a period during accident or illness, and without cover they carry that risk themselves.

Fifth, immigration. Employers of Swiss citizens alone can skip it. For EU/EFTA nationals working under 90 days a calendar year, a declaration to the State Secretariat for Migration (SEM) is needed but no permit. Above 90 days, both a declaration and a permit are required, which the guide says is typically granted with minimal fuss. Workers from third countries must also be declared and need a permit, which is usually harder to obtain.

Sixth, withholding tax. Most people in Switzerland pay advance taxes and file a yearly return, but most foreign nationals are subject to a salary withholding tax that the employer deducts and periodically remits. Employers must notify tax authorities within eight days of hiring a foreign national. The regime also covers cross-border workers who live outside Switzerland.

Seventh through tenth are the recurring duties. Employers apply for family allowances on employees' behalf through the same agency that collects social security. Salaries are paid monthly, at month's end unless the contract says otherwise, net of social security and any withholding, accounting for holiday pay, overtime and sick pay, with a detailed monthly pay slip showing gross pay and deductions. Total annual wages must be declared to the social security collector by 30 January of the following year, with overpayments refunded and shortfalls requested. After year end, employees receive salary statements in a strict format for their tax returns.

Readers should treat the guide as a starting checklist rather than legal advice. Thresholds change, family allowance rules differ by canton, and the claims about what the sponsor's service can take over come from the sponsor's own materials.