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EOR IN Switzerland
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A guide to employing and growing your team in Switzerland
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Switzerland possesses one of the world’s most stable and prosperous economies, characterized by a highly skilled workforce, a strong focus on innovation, and a business-friendly environment. The labor market is governed by the Swiss Code of Obligations and various Cantonal regulations. There is no national statutory minimum wage; however, several cantons (such as Geneva, Basel-Stadt, Neuchâtel, Jura, and Ticino) have established their own mandatory minimum wage requirements, with Geneva’s rate exceeding CHF 24 per hour as of 2026.
Employer Contributions
Social Security (AHV/IV/EO): 5.3%
Unemployment Insurance (ALV): 1.1%
Pension Fund (BVG): Minimum 50% of the total contribution (varies by age/scheme)
Accident Insurance (BU): 0.1% – 2%
Total Employer Contribution: ~10% – 15%
Employee Payroll Taxes
Social Security (AHV/IV/EO): 5.3%
Unemployment Insurance (ALV): 1.1%
Pension Fund (BVG): Minimum 50% of the total contribution
Non-Occupational Accident Insurance (NBU): 1% – 3%
Total Employee Contribution: ~12% – 20%
Employee Income Tax Rates
Income tax in Switzerland is levied at federal, cantonal, and municipal levels, resulting in significant variation based on residence.
Federal Tax: Progressive rates ranging from 0% to 11.5% (Federal cap).
Cantonal/Municipal Tax: Progressive rates that vary widely by region.
Combined Effective Tax: Generally ranges from 21% to 46% depending on the canton and municipality.
Statutory Leave
Employees are entitled to a minimum of 4 weeks (20 days) of paid annual leave per year. For employees under the age of 20, the legal minimum is 5 weeks (25 days). Public holidays vary by canton, with some cantons observing up to 15 days annually.
Pregnancy and Maternity Leave
Female employees are entitled to 14 weeks of maternity leave following childbirth. This is compensated at 80% of the employee’s salary, capped at CHF 220 per day, funded by the federal maternity insurance system.
Paternity Leave
Fathers are entitled to 2 weeks (10 working days) of paid paternity leave, which must be taken within 6 months of the child’s birth.
Work-Related Injury Leave
Parental Leave: There is no specific national statutory parental leave beyond maternity and paternity entitlements.
Other Leaves: Includes sick leave (employer must continue salary payment for a limited period), bereavement leave, and 14 weeks of paid special leave for employees with a seriously ill child.
Termination Process
Termination in Switzerland is flexible. Employers or employees may terminate an open-ended contract by observing the notice period. Termination must not be abusive (e.g., due to trade union activity, religion, or to avoid upcoming salary increases). While severance pay is not strictly mandated by law, it may be required by a judge in specific cases where an employee has more than 20 years of service and is aged over 50.
Notice Period
Notice periods are governed by the Swiss Code of Obligations:
First year of service: 1 month
2nd to 9th year of service: 2 months
10+ years of service: 3 months
These can be modified by individual or collective labor agreements.
Probation Period
Typically lasts between 1 to 3 months. During this period, the notice period is shortened to 7 calendar days, unless otherwise agreed upon in the employment contract.