--- title: "Hiring in Switzerland 2026 | Employer of Record Guide" description: "Hire in Switzerland through Teamed's EOR. 5.3% employer AHV/IV/EO, 20 days statutory leave, no federal minimum wage. The Switzerland guides, one per layer." canonical: https://www.teamed.global/country-hiring-guides/switzerland --- Switzerland · Country overview Served by Teamed via a Switzerland-licensed EOR entity # What do you need to know to hire in *Switzerland*? Switzerland has no federal minimum wage, statutory severance requires 20 years of service and an employee over 50, and abusive dismissal protection applies from day one. Annual leave is 20 days for a five-day week, and notice scales to 12 weeks after 10 years. Each guide below takes one layer. Last reviewed 13 June 2026 · Switzerland guide ## How does Teamed handle Swiss hiring for you? Teamed becomes your legal [employer of record](/lp/employer-of-record) in Switzerland for [**from $599 per employee per month**](/pricing), with **zero FX mark-up** in any currency. Payroll, contracts, and the full Swiss employment law stack run on **one platform**. **Real HR and legal experts** manage every Swiss hire, from the first offer letter to the final work certificate (Arbeitszeugnis). **An actual person**, not a chatbot or a pooled queue, handles your Swiss team alongside EOR, contractor onboarding, and entity payroll on **one platform**. There is **no setup fee** and **no exit fee**. Employer cost **passes through at cost, itemised** on every invoice. A Swiss contractor who converts to employment keeps their record, and that same employee can **graduate** from EOR to your own Swiss entity without re-onboarding. Run the [Crossover Calculator](https://www.teamed.global/tools/crossover-calculator) to see the month the model flips. EOR is the right model for a first Swiss hire, **until it isn't**. Three things you won't find on any other Switzerland EOR guide - **Switzerland has no federal minimum wage.** Only a handful of cantons set their own floors. Geneva's is the highest at CHF 24.59/hour. Most cantons have no floor at all. A salary that is legal in Zurich may be under the cantonal minimum in Geneva. [The hiring guide](/country-hiring-guides/switzerland/hiring-guide) covers how to set compliant pay across cantons. - **Statutory severance only applies after 20 years of service, and only to employees over 50.** Most European countries trigger severance on any dismissal. Switzerland does not. The payout is 2 to 8 months of salary, but most terminations attract no statutory severance at all. Abusive dismissal is a separate route, capped at 6 months of salary, and applies from day one. - **Swiss income tax has three layers: federal, cantonal, and communal.** The federal top rate is 11.5%, but total effective rates in Zurich can reach 41 percent and in Geneva around 44 percent. Quoting only the federal rate to an employee will understate their net pay by a wide margin. [The tax guide](/country-hiring-guides/switzerland/tax-and-payroll) sets out each layer. Answer.cite this Hiring in Switzerland adds roughly 5.3% in employer AHV/IV/EO contributions on top of gross salary, plus second-pillar BVG pension contributions that start at 3.5% for employees aged 25 to 34 and rise with age. Switzerland pays monthly. Statutory annual leave is 20 days for a five-day week. Public holidays vary by canton. There is one federal public holiday, August 1. Most cantons observe 10 to 11 days in total. Teamed runs Swiss payroll, contracts, and compliance through an EOR entity holding the required Swiss registrations. This page is the map. Each guide below is the detail. At a glance · Switzerland CHF · German, French, Italian · Monthly payroll Currency CHF Employer AHV/IV/EO 5.3% federal social security, matched by employee BVG pension (age 25-34) 3.5% + 3.5% employer min + employee min; rises with age Annual leave 20 days 5-day week; public holidays counted separately Minimum notice 4 weeks year 1 of service (Art. 335c CO) Probation cap 3 months 7-day notice during probation Severance qualifying service 20 years plus age 50 threshold Federal income tax top rate 11.5% federal only; cantonal tax adds more ![A wide illustration of Zurich at golden hour: the Limmat river in the foreground, the old town and twin-towered Grossmunster behind it, and a clear amber sky above the Alps on the horizon.](/images/country-guides/switzerland-hiring.webp) Switzerland · per employee · per month · flat $ 599 Zero FX. No setup fees. 48-hour onboarding. The price your finance team can forecast against without an asterisk. Zero FX Fixed No setup fee No exit fee 48-hour onboard ## How much does it cost to hire an employee in Switzerland in 2026? A Swiss hire costs roughly 115 to 120 percent of gross salary once you add it all up. Employer AHV/IV/EO contributions are 5.3% and BVG second-pillar pension starts at 3.5% for younger employees and rises with age. Both sit on top of salary. Employer AHV/IV/EO social security runs at 5.3% on gross salary, matched by the employee. ALV unemployment insurance adds another 1.1 percent on earnings up to CHF 148,200 per year. BVG occupational pension contributions start at 3.5% employer for employees aged 25 to 34 and rise to 9 percent for employees aged 55 to 65. The employer must fund at least 50 percent of BVG contributions. UVG accident insurance, FAK family allowances, and optional collective agreements can add more. Teamed's Swiss fee sits inside the total cost envelope. Teamed's Switzerland price is a starting rate, with zero FX in any currency pairing. No setup fees. No exit fees. Salaries, taxes, and benefits passed through at cost on every invoice. The full breakdown, with worked examples at current statutory rates, is in the cost guide. [Read the full Switzerland cost breakdown](/country-hiring-guides/switzerland/cost-breakdown) ## Do you need a Swiss entity to hire employees in Switzerland? No. An Employer of Record runs Swiss payroll and contracts from day one. Your own Swiss AG or GmbH becomes cheaper than EOR somewhere around 5 to 8 employees, depending on salary. Forming a Swiss AG requires CHF 100,000 in share capital, notarisation, and registration with the Commercial Register. A GmbH requires CHF 20,000. Either takes six to twelve weeks and comes with ongoing accounting, payroll, and annual filings. An [Employer of Record](/lp/employer-of-record) is faster and cheaper at low headcount. Teamed runs Swiss payroll, AHV/IV/EO registrations, and BVG pension enrolment from day one. The crossover point depends on Swiss salary levels and your accounting costs. For most tech roles it lands around 5 to 8 employees. The EOR vs entity guide runs those numbers. Most EOR providers will not tell you when you have crossed it. We do, and we help you move. You progress from contractor to EOR to your own Swiss entity on **one platform** under Teamed's Graduation Model, with tenure preserved. [Read the full Switzerland EOR vs entity guide](/country-hiring-guides/switzerland/eor-vs-entity) ## What are the key employment law rules in Switzerland in 2026? Switzerland has no federal minimum wage. Geneva's cantonal floor is CHF 24.59/hour, the highest in the country. Abusive dismissal protection applies from day one and carries a compensation cap of 6 months of salary (Art. 336a CO). Switzerland has no single minimum wage at the federal level. A handful of cantons set their own floors. Geneva's is CHF 24.59/hour from January 2026. Other cantons with a floor are Neuchatel, Jura, Ticino, and Basel-Stadt. Zurich and Berne have no cantonal minimum. You must check the canton where each employee works. The Swiss Labour Act (ArG) caps the standard working week at 45 hours for office, industrial, and technical employees. Written employment contracts must record the key terms. Probation may not exceed 3 months under Art. 335b CO. During probation either side can exit on 7 days notice. The hiring guide covers the day-one obligations in full. [Read the full Switzerland hiring guide](/country-hiring-guides/switzerland/hiring-guide) ## What benefits must you provide Swiss employees in 2026? The statutory floor is 20 days of paid annual leave, 3 weeks of continued salary during illness in year one of service, 14 weeks of maternity leave at 80% of average salary, and 2 weeks of paternity leave. Public holidays vary by canton. There is one federal public holiday. Most cantons observe around 10 to 11 days in total. Statutory annual leave is 20 days for a five-day week under Art. 329a CO. Switzerland counts annual leave and public holidays separately. There is one federal statutory public holiday (August 1). Cantons add their own, typically bringing the total to 10 or 11 days. During illness, employers must continue full salary for at least 3 weeks in year one of service. The minimum rises with tenure across three common cantonal scales (Berne, Basel, Zurich). Most Swiss employers hold collective insurance (Krankentaggeld) that extends cover to 720 days at 80 percent of salary. Maternity leave is 14 weeks under Art. 329f CO, paid at 80% of average salary through the EO income compensation scheme, capped at CHF 220 per day. Paternity leave is 2 weeks. Either parent may take additional unpaid parental leave by agreement. The benefits guide covers each entitlement and the employer obligations. [Read the full Switzerland benefits guide](/country-hiring-guides/switzerland/benefits) ## What are payroll taxes in Switzerland in 2026? Employer AHV/IV/EO social security is 5.3%, matched by the employee. BVG occupational pension adds at least 3.5% employer and 3.5% employee for younger workers, with both sides paying more as the employee ages. Swiss social insurance has four main employer contributions: AHV/IV/EO at 5.3%, ALV unemployment at 1.1 percent on earnings up to CHF 148,200 per year, UVG accident insurance (rate varies by occupation and risk), and FAK family allowances (cantonal, typically 1 to 3 percent). BVG second-pillar pension is separate: the employer must fund at least 50 percent of contributions, which start at 3.5% each side for employees aged 25 to 34 and rise to 9 percent each side for employees aged 55 to 65. Contributions apply to coordinated salary after deducting the 2026 coordination amount. On the employee side, income tax has three layers: federal, cantonal, and communal. The federal top rate is 11.5% above CHF 793,400 of taxable income. Cantonal and communal tax adds substantially more. Total effective rates reach around 41 percent in Zurich and 44 percent in Geneva. The federal zero-rate band covers income below CHF 18,500/year. For foreign employees without a settlement permit, withholding tax (Quellensteuer) is deducted at source. The tax and payroll guide sets out every layer. [Read the full Switzerland tax and payroll guide](/country-hiring-guides/switzerland/tax-and-payroll) ## How do you terminate an employee in Switzerland? Swiss statutory notice is 4 weeks in year one of service, rising to 2 months in years two to nine, and 3 months from year ten. Notice runs to the end of a calendar month under Art. 335c CO. Notice under the Code of Obligations runs to the end of a calendar month. In year one it is 1 month. From the second to the ninth year it is 2 months. From the tenth year it is 3 months. There is no statutory cap above that. The employer pays full salary through the notice period. Garden leave is permitted but must be agreed. Switzerland has no automatic statutory severance on dismissal. Severance under Art. 339b CO applies only when the employee has at least 20 years of continuous service and is over 50 at the time of termination. The payout range is 2 to 8 months of salary. Most terminations attract no statutory severance at all. Abusive dismissal (Art. 336 CO) is a separate claim. It applies from day one, with no qualifying service period. The court can award up to 6 months of salary. Employees must file a conciliation request within 180 days after the end of employment. Collective dismissals involving 10 or more employees at firms with 21 to 99 workers within any 30 days require prior notification to the cantonal authority. The termination guide covers each route in full. [Read the full Switzerland termination and severance guide](/country-hiring-guides/switzerland/termination-and-severance) ## What should you know before hiring in Switzerland? Two things catch US buyers out. The first is the cantonal tax and wage floor patchwork. The second is that BVG pension contributions rise with age, so the cost of a senior hire is meaningfully higher than the cost of a junior one at the same salary. **Switzerland is 26 cantons, not one labour market.** Minimum wages, income tax rates, public holidays, and even some working-time rules vary by canton. A payroll that is correct in Zurich may need different setup in Geneva or Basel. Most EOR providers run one-size payroll. Teamed configures to the employee's work canton. **BVG pension contributions rise sharply with employee age.** At age 25 to 34 the combined rate is 3.5% each side. By age 55 to 65 it reaches 9 percent each side. Hiring a 55-year-old at the same salary as a 30-year-old adds roughly 11 percent to total labour cost on the pension line alone. The cost breakdown guide models this by age band. The EOR vs entity guide covers when and how to move to a Swiss entity. [Read the full Switzerland hiring guide](/country-hiring-guides/switzerland/hiring-guide) ## Frequently asked questions How much does it cost to hire an employee in Switzerland? Plan on roughly 115 to 120 percent of gross salary once employer AHV/IV/EO at 5.3%, ALV unemployment insurance, BVG pension, and UVG accident insurance are added. BVG pension contributions rise with employee age, from 3.5% for employees aged 25 to 34 to 9 percent for those aged 55 to 65. Teamed's Switzerland fee is one flat number per employee per month, with zero FX mark-up. The cost breakdown guide has worked examples. Can a US company hire in Switzerland without an entity? Yes. An Employer of Record like Teamed runs Swiss payroll, AHV/IV/EO registrations, and BVG pension enrolment through its own registered entity. You direct the work. Teamed becomes the legal employer of record. Setup takes 48 hours once terms are confirmed. Forming your own Swiss AG requires CHF 100,000 in share capital and six to twelve weeks of registration. Does Switzerland have a minimum wage? Switzerland has no federal minimum wage. A handful of cantons set their own floors. Geneva's cantonal minimum is CHF 24.59/hour from January 2026, the highest in the country. Zurich and Berne have no cantonal minimum wage. You must check the specific canton where each employee works. The hiring guide covers compliant pay-setting across cantons. What are Swiss statutory notice periods? Notice runs to the end of a calendar month. In year one of service it is 1 month. From the second to the ninth year it is 2 months. From the tenth year it is 3 months. There is no higher statutory tier. During probation, either side may give 7 days notice. Probation may not exceed 3 months (Art. 335b CO). What is Swiss statutory severance? Switzerland has no automatic severance on dismissal. Statutory severance under Art. 339b CO applies only when an employee has at least 20 years of continuous service and is over 50 at termination. The payout is 2 to 8 months of salary. A separate abusive dismissal claim under Art. 336a CO can award up to 6 months of salary and applies from day one. What is the minimum annual leave for a Swiss employee? Statutory minimum paid annual leave is 20 days for a standard five-day week under Art. 329a CO. Switzerland counts annual leave and public holidays separately. There is one federal public holiday (August 1). Cantons add their own, typically bringing the total to around 10 to 11 days. Employers can grant more leave by contract. Teamed Legal Operations Switzerland reads as a high-wage, low-friction market and it mostly is. The friction is hidden in the cantonal layer. Tax, minimum wage, public holidays, and sick pay scales all vary by where the employee actually works. These guides exist so the first Swiss hire does not become a lesson in 26 different rule sets. A note from Tom Price-Daniel Switzerland has one of the cleanest employment frameworks in Europe. Notice is capped at three months. Statutory severance applies only after 20 years and age 50. The complexity is cantonal. Tax layers, wage floors, and public holidays all vary by where your employee sits. Read the right Switzerland guide before the first hire, not after the first payroll correction. Tom Price-Daniel · Co-founder, Teamed ## Keep reading - [Switzerland hiring guide, offer to payslip](/country-hiring-guides/switzerland/hiring-guide)guide - [Switzerland employer cost breakdown 2026](/country-hiring-guides/switzerland/cost-breakdown)guide - [EOR vs entity in Switzerland](/country-hiring-guides/switzerland/eor-vs-entity)guide - [Switzerland termination and severance](/country-hiring-guides/switzerland/termination-and-severance)guide - [Switzerland tax and payroll](/country-hiring-guides/switzerland/tax-and-payroll)guide - [Employer of Record overview](/lp/employer-of-record)core - The Graduation Modelcore - [Teamed pricing, Zero FX Fixed](/pricing)core - [Crossover Calculator](https://www.teamed.global/tools/crossover-calculator/switzerland)tool - [Talk to an expert](https://www.teamed.global/contact)CTA A note on this page. This is a guide, not legal, tax or accounting advice. Rules change and vary by jurisdiction. Verify current requirements with the State Secretariat for Economic Affairs (SECO), the Federal Tax Administration (FTA), and your employee's canton of residence for Switzerland, or speak to a qualified professional, before relying on any specific framework.