🇨🇭 Hiring in Switzerland

💡 Everything you need to know to hire and manage employees in Switzerland through Toku. Toku handles payroll processing, tax withholding, social contributions, and statutory compliance. This guide covers what you need to plan costs and manage your team.

At a Glance

Onboarding a New Hire

Plan for 7-10 business days between submitting a new hire and their start date. Payroll registration must be completed at least 5 business days before the hire date, which Toku handles, including enrollment in social security, occupational pension, and accident insurance.

Submit your new hire through the Toku platform and we take it from there: local employment agreement, statutory registrations, and payroll setup. See Onboard Contributors as a Client Admin in Toku for the step-by-step process, and the Country Readiness Live Tracker for lead times across all countries.

Employer Costs

On top of gross salary, employers in Switzerland pay:

As a rule of thumb, total cost of employment is roughly 110-115% of gross salary, depending on the canton, the accident risk class, and the pension plan. A 13th month salary is not required by law but is very common in Switzerland; where agreed in the contract it becomes binding, so factor it into your annual salary budget.

Employees pay their own share too: 5.3% AHV/IV/EO, 1.1% unemployment insurance, 1-4% non-occupational accident insurance, their portion of pension contributions, and income tax (withheld at source for foreign employees without a C permit; Swiss nationals and C-permit holders generally pay tax by annual assessment). Health insurance is mandatory but purchased individually by residents and does not run through payroll. These employee amounts come out of gross salary, not on top. Toku calculates and remits all of the above.

Compensation & Payroll

Toku runs one payroll per month in Switzerland, and employees receive a detailed payslip each cycle showing gross salary, deductions, and net pay. There is no federal minimum wage, but five cantons set their own hourly minimums in 2026: Geneva (CHF 24.59), Basel-Stadt (CHF 22.20), Jura (CHF 21.40), Neuchâtel (CHF 21.35), and Ticino (CHF 20.00-20.50, varying by sector). Sector collective agreements can also set binding pay floors. All salaries are paid in CHF.

Employment Contracts & Probation

• Toku issues a compliant local employment agreement for every hire.
• Indefinite-term contracts are the standard form of employment. Fixed-term contracts end automatically on the agreed date, but repeated back-to-back fixed-term contracts are not permitted and can be reclassified as indefinite.
• Probation is 3 months per Toku's employment agreement. During probation, either party may terminate with 7 days' notice, effective from any day.

Working Hours

The standard working week is 40-44 hours depending on the contract and sector. The legal maximum is 45 hours per week for office, technical, industrial, and large retail staff (50 hours in other sectors). Hours worked beyond the legal maximum must be compensated at 125% of the regular rate or with equivalent time off; for office and technical staff, the 25% surcharge applies after 60 excess hours in a calendar year. Employees are entitled to a minimum daily rest of 11 consecutive hours and mandatory breaks during the workday.

Leave Entitlements

At least two consecutive weeks of annual leave must be taken each year, and leave cannot be paid out in cash except on termination. Maternity, paternity, and adoption leave are funded by the federal loss-of-earnings scheme rather than by you as the employer.

Public Holidays (2026)

Only Swiss National Day (August 1) is a federal public holiday; all others are set by each canton, and the total ranges from 8 to 15 per year depending on where your employee lives. The most commonly observed holidays are:

Holidays falling on a weekend are generally not replaced with a substitute weekday off.

Benefits: Required vs. Common Extras

Statutory (included in employer costs above): Switzerland's three-pillar system provides state old-age and disability pensions (first pillar), a mandatory occupational pension for employees earning above CHF 22,680 per year (second pillar, with the employer paying at least half of contributions), and accident insurance covering both occupational and non-occupational accidents. Health insurance is mandatory for all residents but arranged and paid individually, outside payroll.

Through Toku you can review your team's pension and accident coverage: see Switzerland Pension & Accident Insurance, which covers the AXA occupational pension plan and accident insurance Toku provides for Swiss employees.

Other common extras include enhanced pension contributions above the legal minimum, supplementary accident and health insurance, daily sickness benefits insurance, additional leave days (25 or 30 days is common at larger employers), and public transport or meal subsidies. Toku can advise on the cost impact of any of these.

Ending Employment

Switzerland allows termination without stated cause, but dismissals can be ruled abusive (with compensation of up to six months' salary), and notice given during protected periods such as illness or pregnancy is void, so involve Toku early if you are considering ending an employment relationship. For the process, see How to Terminate an Employee or Contractor.

There is no general statutory severance in Switzerland. The only statutory exception is for employees aged 50 or over with at least 20 years of service (2-8 months' salary), and employer-funded pension benefits can usually be offset against it. Negotiated separation payments are common for senior employees.

Hiring Someone from Overseas?

EU and EFTA nationals can live and work in Switzerland under the free movement agreement, subject to registration. Other nationals need a work and residence permit (typically an L or B permit), which is subject to annual quotas and a labor market test, with processing taking several weeks to several months. Talk to Toku before extending an offer to a candidate who needs sponsorship.

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Last verified July 2026. This guide is for general information and doesn't constitute legal or tax advice. Your Toku account manager can confirm specifics for your situation.