Country Payroll Guide Switzerland (Zurich)
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- Date format
- Swiss Franc (CHF)
- the standard rate is 7.70%
- AVS/AI/APG - 5.3%
- 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%
- 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
No national minimum wage.
- Payroll Cycle
- 13th Salary
No 13th salary.
- 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
- 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 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.
- 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 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.
- 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.
- L (short-term resident): This is a permit valid from 3-12 months for individuals that have a valid employment contract.
- 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.
- C (settled foreign nationals): This permit is valid indefinitely after one has resided in Switzerland for five uninterrupted years.
- 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.