Switzerland at a glance
Taxes in Switzerland
Employer Contributions
Employer tax: 0% income tax withholding (employees handle their own in most cases)
Social security (Pillars 1 + 2):
| Contribution Type | Rate |
|---|---|
| AHV/IV/EO (old-age, disability, income compensation) | 5.3% |
| Unemployment insurance (ALV) | 1.1% (up to CHF 148,200) |
| Family allowances (canton-dependent) | ~1%–3% |
| Occupational pension (Pillar 2 / BVG), employer share | 50%+ of total contribution |
Pillar 2 employer minimum contributions by age:
| Age Range | Minimum Employer Rate |
|---|---|
| 25–34 | ≥3.5% |
| 35–44 | ≥5% |
| 45–54 | ≥7.5% |
| 55–65/64 | ≥9% |
Total employer rate range: 7.4%–9.4% (Pillar 1) + 3.5%–9% (Pillar 2)
Employer tax: 0% income tax withholding (employees handle their own in most cases)
Social security (Pillars 1 + 2):
| Contribution Type | Rate |
|---|---|
| AHV/IV/EO (old-age, disability, income compensation) | 5.3% |
| Unemployment insurance (ALV) | 1.1% (up to CHF 148,200) |
| Family allowances (canton-dependent) | ~1%–3% |
| Occupational pension (Pillar 2 / BVG), employer share | 50%+ of total contribution |
Pillar 2 employer minimum contributions by age:
| Age Range | Minimum Employer Rate |
|---|---|
| 25–34 | ≥3.5% |
| 35–44 | ≥5% |
| 45–54 | ≥7.5% |
| 55–65/64 | ≥9% |
Total employer rate range: 7.4%–9.4% (Pillar 1) + 3.5%–9% (Pillar 2)
Income tax: 10%–35% (varies by income, canton, and municipality)
| Contribution Type | Rate |
|---|---|
| AHV/IV/EO | 5.3% |
| Unemployment insurance (ALV) | 1.1% (up to CHF 148,200) |
| Non-occupational accident insurance (NBU) | ~1%–4% |
| Occupational pension (Pillar 2) | Varies by age (balance after employer share) |
| Taxable Income (CHF) | Federal Rate |
|---|---|
| 0 – 18,500 | 0% |
| 18,501 – 33,200 | 0.77% |
| 33,201 – 43,500 | 0.88% |
| 43,501 – 58,000 | 2.64% |
| 58,001 – 76,100 | 2.97% |
| 76,101 – 82,000 | 5.94% |
| 82,001 – 108,800 | 6.60% |
| 108,801 – 141,500 | 8.80% |
| 141,501 – 184,900 | 11.00% |
| 184,901 – 793,400 | 13.20% |
| Over 793,400 | 11.50% |
Total tax burden varies significantly by canton:
- Low-tax cantons (Zug, Schwyz): 10%–15%
- High-tax cantons (Geneva, Bern, Vaud): 30%–40%+
Employer of Record in Switzerland
How Remote& EOR Works
Remote& acts as the legal employer of your Swiss workers — managing AHV/BVG contributions, payroll, statutory benefits, and employment contracts while you direct the work.
| Party | Role |
|---|---|
| Your Company | Manages work tasks, performance, and team direction |
| Remote& | Runs payroll, files AHV/ALV/BVG, administers benefits, ensures legal compliance |
| Employee | Works for your company under a locally compliant Swiss contract |
Ask Remi:
"Hire a senior product manager in Zurich — CHF 12,000/month, starting Q3" Remi handles everything: contract, AHV registration, Pillar 2 BVG enrollment, payroll setup, and accident insurance.
Benefits in Switzerland
- Accident insurance (UVG): Employers must provide occupational accident coverage up to CHF 148,200 annual salary; average premium ~0.79% paid by employer
- AHV/IV/EO: Old-age, survivors, disability, and income compensation insurance — employer contributes 5.3%
- Unemployment insurance (ALV): Employer contributes 1.1% up to contribution ceiling
- Pillar 2 (BVG occupational pension): Mandatory employer-funded pension — employer must contribute at least 50% of total Pillar 2 contribution
- Additional vacation days
- Subsidized meals or canteen
- Public transport allowance
- Home office allowance
- Flexible working arrangements
- Professional development budget
- Gym membership or wellness allowance
Leave entitlements
| Leave type | Entitlement |
|---|---|
| Paid Annual Leave | 20–25 days + public holidays (canton-specific) |
| Sick Leave | First 15 days employer-paid; then up to 2 years of daily sickness benefits insurance (Krankentaggeld); long-term cases may involve disability insurance or Pillar 2 |
| Maternity Leave | 14 weeks |
| Paternity Leave | 2 weeks (within 6 months of birth) |
| Compassionate Leave | 1–3 days for death of close family member |
Employment conditions
Probation
Standard probation: 1–3 months (unless specified otherwise in contract or collective agreement).
Written Employment Terms
Employers must provide written employment terms for contracts exceeding one month, including salary, working hours, and notice periods.
Employee Rights & Protections
Swiss workers are entitled to: equal pay, payslip, safe and healthy workplace, anti-discrimination and equality protections, unfair dismissal protection, and employee data protection/privacy rights.
Payments
End of employment in Switzerland
Swiss employment law provides significant protections for employees. Four termination pathways:
1. Mutual agreement — at any time by both parties 2. Employee resignation — with applicable notice period based on length of service 3. Employer-initiated termination — with statutory notice periods 4. Fixed-term contract expiry — automatic end on agreed date
Protected periods: Employees cannot be dismissed during pregnancy and maternity leave, temporary illness or accident, military or civil service, and certain family-related circumstances.
Employees who believe they were unfairly or abusively dismissed may challenge termination and seek financial compensation through Swiss labour courts.
Frequently asked questions
Four paths: run payroll from HQ (generally non-compliant long-term); use contractors (not valid for full-time exclusive workers under Swiss law); establish a local entity (feasible but complex and time-consuming); or use Remote& as Employer of Record for the fastest compliant path.