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Global Expansion Guide

Switzerland

Manage and pay your employees easily with BIPO in Switzerland and 170+ other markets. Build your international teams today with our global Employer of Record service!

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Currency

Swiss Franc (CHF)

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Language

German, French, Italian, Romansh

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Capital

Bern

Employer of Record Switzerland

Employment Contract

Statutory Contributions

Minimum Wage

Public Holidays

Working Hours

Leave

Termination and Compensation

BIPO as your Employer of Record

Benefits of BIPO EOR Service in Switzerland

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Employer of Record Switzerland

Embark on your business expansion in Switzerland with BIPO’s Employer of Record (EOR) services. Designed to assist you in navigating the intricacies of local employment laws and regulations, we can help ensure a smooth transition for your business and workforce.

As an Employer of Record (EOR), we act as your legal employment entity, streamlining the process of business expansion. Allowing businesses to focus on their core business operations while the EOR manages all aspects of compliance, payroll, HR, and employee benefits when venturing into the Swiss market. An EOR provider addresses the common challenges associated with local employment laws, payroll regulations, and work permit requirements.

This guide was last updated on 3 November 2025. The content in this guide is current as of this date and based on common business practices.

Employment Contract

Types of Labour Contracts

  • Open-ended employment contract
  • Fixed-term employment contract

Unless otherwise provided by law, individual employment contracts may be concluded in any form, although written contracts are customary.

Key Contents of a Labour Contract

  • Names and addresses of the employer and employee
  • Job title or position
  • Salary and compensation details
  • Weekly working hours

Any terms not expressly stated in the contract are generally governed by the Swiss Code of Obligations or, where applicable, by a Collective Bargaining Agreement (CBA).

Collective Bargaining Agreement (CBA)

CBAs are designed to ensure minimum working conditions for employees, taking into account the specific needs of each sector and its representative organisations. A CBA may regulate, among other topics:

  • Minimum wage
  • Payment of wages during illness, maternity, or military service
  • Vacation and public holidays
  • Working hours regulations
  • Extended protections against dismissal

For employers, CBAs help promote stability and predictability within the company.

Statutory Contributions

Scope of Application: Applies to all individuals.

Type of Social Insurance Cap Employee Contribution Employer Contribution
Pension and Survivors’ Insurance – 4.35% 4.35%
Disability Insurance – 0.70% 0.70%
Income Compensation Allowance (for service, maternity, leave, adoption, and care) – 0.25% 0.25%
Supplementary Benefit

Annual supplementary benefits: 5/8 of the cost shall be borne by the federal government, and 3/8 by the cantons.

Reimbursement of expenses incurred due to illness and disability: The expenses shall be borne by the cantons.
Transitional Allowance for Elderly Unemployed Persons The cost shall be borne by the federal government.
Occupational Benefit Plans – Pension, Survivors’, and Disability Insurance

Implemented in accordance with the provisions of the pension institution, with contributions jointly paid by the employer and the employee, and the total contribution paid by the employer shall be at least equal to that paid by the employee.

Security Fund: Funded by contributions paid by the pension institution in accordance with the Federal Act on Acquired Rights in Occupational Benefit Plans and asset returns.
Associated Individual Pension Measures

The contribution amount shall be determined by the insured person at their own discretion.

Tax Deduction Limits:

  • Employed persons: May deduct up to CHF 7,258 per year.
  • Self-employed persons: May deduct 20% of annual income, subject to a maximum of CHF 36,288 per year.
Family Measures –
  • Federal: None
  • Valais Canton: 0.17%
  • Federal: 2.00%
  • Cantonal: 1.025% – 2.75 (depending on the fund)
Unemployment Insurance CHF 12,350 / month 1.10% 1.10%

Minimum Wage

Switzerland does not have a statutory national minimum wage. In the absence of a collective labour agreement specifying a minimum wage, employers are free to determine the salary to be paid and may also decide on its composition, including bonuses and in‑kind benefits.

Public Holidays

The public holidays in Switzerland for 2025 are listed below. Please refer to official announcements from the Swiss government for the latest updates.

Holiday Name Date
New Year’s Day 1 January 2025
Berchtold’s Day 2 January 2025
Good Friday 18 April 2025
Easter Monday 21 April 2025
Ascension Day 29 May 2025
Whit Monday 9 June 2025
Swiss National Day 1 August 2025
Christmas Day 25 December 2025
Saint Stephen’s Day 26 December 2025

Note: The only statutory public holiday observed uniformly across Switzerland is 1 August (National Day). Each canton may designate additional public holidays, which can vary by region. Under the labour law, the total number of public holidays per year must not exceed nine.

Working Hours

Normal Working Hours

Per Week Scope of Application
40-44 hours Common in all industries
Up to 45 hours Employees in industrial enterprises, as well as office staff, technical personnel, and other similar employees, including salespersons in large-scale retail enterprises
Up to 50 hours Other employees

Note: The law permits working hours to exceed the above limits only for certain occupations (e.g., taxi drivers and assistant doctors) and under specific circumstances.

Rest Time

Employees are entitled to at least one rest day per week, which is typically Sunday. Under special circumstances, the employer may allow consecutive rest days or substitute one full rest day with two half-days, provided the employee consents.

Overtime Compensation

Employees performing overtime work are entitled to:

  • Their regular salary plus at least 25% additional compensation, or
  • Paid leave of equivalent duration, or
  • Other forms of compensation as agreed in the employment contract.

Exemption from Overtime Compensation

Overtime compensation may be waived if explicitly agreed in writing between the employer and employee.

Leave

Annual Leave

  • Applicable Employer Type: Single employer.
  • Eligibility: All employees. For those who have not completed a full year of service, annual leave is calculated on a pro-rata basis.
  • Duration: Four weeks per year; five weeks for employees under 20 years old. Annual leave may be extended through an individual labour contract, a standard labour contract, or a collective bargaining agreement (CBA).
  • Allowance: Employees are entitled to 100% of their regular salary during annual leave.
  • Conversion of Unused Leave: Employees may receive monetary compensation for unused annual leave upon termination of the employment contract.

Sick Leave

  • Eligibility: Employers may request a medical certificate from the first day of absence, although many contracts require it only from the third or fourth day.
  • Without Daily Sickness Benefit Insurance: The employer must pay 100% of the salary according to the employee’s length of service. Typically, the payment period is three weeks in the first year, and may be extended in subsequent years depending on service length and circumstances.
  • With Daily Sickness Benefit Insurance (common practice): The insurance company pays the daily benefit, while the employer covers the insurance premium. Most policies cover at least 80% of the salary, for up to 720–730 days within a 900-day period.

Maternity Leave

  • Eligibility: Female employees who have contributed to social insurance for at least 9 months.
  • Duration: Minimum of 14 weeks (98 days) after childbirth.
  • Allowance: Paid through the Income Loss Compensation (ILC) program, covering 80% of the employee’s salary. Employees are legally protected from dismissal during pregnancy and several months following childbirth.

Other Leave Types

  • Care Leave: Employees may take leave to care for a sick child, typically up to 3 days, with a medical certificate. Longer leave may be required in special cases, with salary treatment following the sick leave rules for uninsured employees.

  • Breastfeeding Leave: During the first year after childbirth, breastfeeding time is considered working time:

    • ≤4-hour workday: 30 minutes
    • 4-hour workday: 60 minutes
    • 7-hour workday: 90 minutes
  • Paternity Leave: Fathers or recognized co-caregivers are entitled to two weeks of paid paternity leave, covered by the ILC program.

  • Leave for Specific Events: Employees may take leave without using annual leave for:

    • Personal Reasons: Moving, medical appointments, etc.
    • Family Events: Births, deaths of family members, etc.
    • Job Searching: Time for finding a new job after contract termination.
    • Youth Sports Activities: For employees under 30 years old.

    For monthly-salaried employees taking leave for the above reasons, their salaries shall be paid as usual; this does not automatically apply to hourly-paid employees.

  • Military or Civil Service Leave: Employers pay at least 80% of daily salary, with compensation available via the ILC program.
  • Force Majeure / Mass-Impact Events: Employers are not required to pay salary if the employee cannot work due to events affecting many people (e.g., traffic disruptions or flight cancellations).

Termination and Compensation

Notice Period

  • Termination During the Probationary Period: 7 days’ notice.
  • Termination After the Probationary Period: The notice period is the same for both employer and employee and depends on the employee’s length of service:
    • 1 month for the first year of service
    • 2 months for the 2nd to 9th year of service
    • 3 months for the 10th year of service and beyond
  • Immediate Termination: Permitted only in serious circumstances, such as fraud, refusal to work, or competing with the employer. Fixed-term contracts generally expire according to their terms unless early termination is explicitly allowed. Legitimate reasons permit either party to terminate the contract immediately.

Protection Period

  • When an employee is unable to work due to illness or an accident, the law stipulates a protection period to prevent dismissal:

    • A maximum of 30 days for the first year of service;
    • A maximum of 90 days for the 2nd to the 9th year of service;
    • A maximum of 180 days for the 6th year of service and beyond.

  • Other Special Protection Periods:

    • Military or Civil Service: During service and four weeks before and after (if service exceeds 11 days);
    • During pregnancy and 16 weeks following childbirth;
    • Federal Overseas Aid Programs (subject to the employer’s authorisation).

Compensation

In general, the Swiss law does not require severance pay, except in the following cases:

  • Explicitly agreed in the employment contract
  • Mandated by a collective labour agreement
  • Dismissal is deemed abusive or without legitimate cause

Goodwill Compensation

Under the Swiss Code of Obligations, employees aged 50 or above with 20+ years of continuous service may be entitled to compensation upon termination.

  • The amount is typically agreed in a written employment contract, standard contract, or collective agreement.
  • Minimum: 2 months’ salary
  • Maximum: 8 months’ salary; if not specified, the court may determine the amount based on circumstances

BIPO as your Employer of Record

BIPO’s total HR solutions include our award-winning HR Management System, Global Payroll Outsourcing, Employer of Record service, and Athena BI.

As your EOR partner, our services are designed to provide a comprehensive, hassle-free experience:

  • Initial Consultation: The journey typically begins with an in-depth discussion to understand your specific business needs, ensuring our EOR services perfectly align with your objectives.
  • Payroll Management: We offer a streamlined payroll system that ensures timely and accurate salary disbursement, complete with statutory deductions and contributions in full compliance with Swiss regulations.
  • Contributions and Taxes: Our expertise in managing local social security requirements ensures your business complies with in-country financial obligations.
  • Compliance with Minimum Wage and Working Hours: We guarantee that your employment practices adhere to Switzerland’s minimum wage and working hours standards, safeguarding your business against potential legal issues.
  • Leave and Paid Time Off Management: Implement and manage leave policies that comply with Switzerland’s laws, ensuring a fair and transparent leave management system for your employees.
  • Regulatory Compliance: Stay ahead of local labour laws and regulations with our up-to-date compliance services, minimising legal risks for your business.
  • Other services: Work visa, permit applications, termination procedures.
Services may vary across countries.

Benefits of BIPO Employer of Record Service in Switzerland

Unlock your growth potential with BIPO’s Employer of Record service in Switzerland. Our EOR service empowers businesses with seamless scalability while ensuring regulatory compliance.

From smooth onboarding to risk mitigation, BIPO handles the administrative HR tasks, enabling companies to concentrate on core business functions and accelerating growth. Our local expertise and global reach ensure efficient operations, enhancing flexibility and reducing operational complexities.

Stay up to date with the latest employment regulations.

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Frequently Asked Questions

An Employer of Record (EOR) is a partner company that acts as the official employer for your employees.

An EOR company handles all the HR aspects and processes, including the legal complexities associated with regulatory and tax compliance.

As your EOR, BIPO supports your organisation by providing a comprehensive range of HR, payroll and advisory services to ensure your business stays compliant. These include end-to-end on/offboarding services for your employees (e.g.: payroll processing, HR and benefits administration, labour contracts, visa applications, payroll/tax compliance, and more).

By engaging BIPO as your EOR, your business benefits from:

  • Compliance in the global markets where you operate
  • Reduced costs and risk mitigation
  • Overall workforce productivity, effectiveness, and efficiencies

A global EOR benefits organisations regardless of size or industry. It is especially useful for organisations that want to:

  • Scale their global business and be fully operational in foreign markets quickly
  • Reduce financial and HR complexities while expanding internationally
  • Minimise time spent trying to understand local labour laws and foreign tax systems
  • Stay compliant across global markets while reducing HR and administrative workflows
  • Benefit from a centralised and intuitive cloud HR platform to manage international teams

A global EOR enables businesses to fast-track their market entry into international market, and reduce the complexities of setting up multiple foreign entities.

When you partner with BIPO, we take on the the day-to-day administrative tasks, while you maintain full control of the business and delegate HR workflows and hiring needs.

Our vast network of business partners across 170+ markets globally supports your business expansion plans, with in-country HR experts providing localised support. Going global has never been easier!

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