Country Payroll Guide Switzerland (Zurich)

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Key Facts

Capital
Bern
Date format
dd/mm/yyyy
Currency
Swiss Franc (CHF)
VAT
the standard rate is 7.70%

Contributions

Employers

AVS/AI/APG
AVS/AI/APG - 5.3%
Unemployment
Unemployment - 1.1%
Solidarity Unemployment Insurance
Solidarity Unemployment Insurance - 0.5%
Family Allowance
Family Allowance - 2.45%
Maternity Insurance
Maternity Insurance - 0.043%
Early Childhood Contribution
Early Childhood Contribution - 0.07%
Total Employment Cost
Total Employment Cost - 9.46%

Employees

Old Age & Survivors
Old Age & Survivors - 4.35%
Disability Insurance
Disability Insurance - 0.7%
Income Compensation
Income Compensation - 0.25%
Unemployment Insurance
Unemployment Insurance - 1.1%
Supplemental unemployment Insurance
Supplemental unemployment Insurance - 0.5%
Total Employee Cost
Total Employee Cost - 9.35%

Minimum Wage

Minimum Wage

No national minimum wage.

Payroll

Payroll Cycle
Monthly
13th Salary

No 13th salary.

Income Tax

Employee Income Tax (1)
Less than 6,700 CHF - 0%
Employee Income Tax (2)
6,700 - 11,400 CHF - 2%
Employee Income Tax (3)
11,400 - 16,100 CHF - 3% + 94 CHF
Employee Income Tax (4)
16,100 - 23,700 CHF - 4% + 235 CHF
Employee Income Tax (5)
23,700 - 33,000 CHF - 5% + 539 CHF
Employee Income Tax (6)
33,000 - 43,700 CHF - 6% + 1,004 CHF
Employee Income Tax (7)
43,700 - 56,100 CHF - 7% + 1,646 CHF
Employee Income Tax (8)
56,100 - 73,000 CHF - 8% + 2,514 CHF
Employee Income Tax (9)
73,000 - 105,500 CHF - 9% + 3,866 CHF
Employee Income Tax (10)
105,500 - 137,700 CHF - 10% + 6,791 CHF
Employee Income Tax (11)
137,700 - 188,700 CHF - 11% + 10,011 CHF
Employee Income Tax (12)
188,700 - 254,900 CHF - 12% + 15,621 CHF
Employee Income Tax (13)
More than 254,900 CHF - 13% + 23,565 CHF

Working Hours

General Working Hours

Contractually agreed working hours are 40 or 42 hours per week. Depending on the field of work, the maximum number of working hours a week is either 45 or 50 hours.

Overtime

Overtime work is compensated with time off in lieu (if agreed between the parties) or 125% of the salary. The parties can contractually agree that overtime hours shall be compensated by the salary.

Leave

Paid Time Off

Employees over the age of 20 receive four weeks paid holiday. Employees under the age of 20 receive five weeks paid holiday.

Public Holidays

12 public holidays. Holidays vary depending on the canton.

Sick Days

Employees are entitled to continuous salary payments for a certain period of time depending on their years of service (three weeks during the first year of service). Alternatively, employers may take out a daily benefits insurance scheme, under which employees usually receive 80% of their last salary for a maximum of 720 days.

Maternity Leave

Mothers (both full-time and part-time employees) are paid 80% of their wages in the form of a daily allowance for 98 days (up to a maximum cap of 196 francs per day).

Paternity Leave

Fathers are entitled to 14 days of paternity leave after the birth of a child. Compensation amounts to 80 percent of average earned income prior to the birth of the child and capped at 196 francs per day.

Parental Leave

No provisions in the law regarding parental leave.

Other Leave

Care leave – 14-week period of paid leave to provide care for seriously ill or injured children.

Termination

Termination Process

Termination in Switzerland has the principle of freedom of dismissal, making it possible to terminate a contract of employment without there being an important reason, provided that such termination is not discriminatory or abusive.

The reason for the dismissal must be explained when the other party requests it. Even if the dismissal is valid through oral termination, it is advisable to do so in writing for evidentiary purposes.

Notice Period
  • Probationary period: seven days’ notice
  • First year of service: one month notice
  • Two to nine years of service: two months’ notice
  • 10 years or more: three months’ notice
Severance Pay

Severance pay is not required in Switzerland unless stated in the employment contract.

Probation Period

One to three months.

Visa

Employment Visa

A citizen of an EU member state or a citizen of the European Free Trade Association can enter Switzerland for three to six months while they search for a job.

  1. L (short-term resident): This is a permit valid from 3-12 months for individuals that have a valid employment contract.
  2. B (resident foreign nationals): This permit is for foreign nationals that have a valid employment contract for at least 12 months. This permit is valid for up to 5 years and can be extended automatically if the duration of the employment is extended.
  3. C (settled foreign nationals): This permit is valid indefinitely after one has resided in Switzerland for five uninterrupted years.
  4. G (cross-border nationals): For citizens who work in Switzerland but reside in a different country. Cross-border commuters must return home at least once a week.