Switzerland: Payroll & Employment Facts
Verified statutory employment facts for Switzerland, each with its official source and the date it applies from. This is our reference record. For provider choice and hiring advice, see the Switzerland employer-of-record guide and the Switzerland country hub.
What is the minimum wage in Switzerland?
| National minimum wage |
No statutory national minimum wage
|
|---|
What employer social contributions apply in Switzerland?
Rates are a percentage of gross wage, applied up to the annual contribution ceiling.
| Employer social security rate |
6.40%
|
|---|---|
| Pension |
3.5 - 9.0%
|
| Healthcare |
0.00%
|
| Family Allowances (FAK/CAF) |
0.7 - 3.4%
|
| Occupational Accident Insurance (BU/AP) |
0.3 - 3.5%
|
| Unemployment Insurance Solidarity Contribution |
0.50%
|
| Annual contribution ceiling |
148,200 CHF
|
| Total employer burden |
11 - 22%
|
What notice and leave rules apply in Switzerland?
Statutory minimum notice the employer must give, by completed length of service.
| Length of service | Employer notice |
|---|---|
| 0 to 11 months | 4 weeks |
| 12 to 107 months | 8 weeks |
| 108+ months | 12 weeks |
| Payment in lieu of notice (PILON) |
Permitted
|
|---|---|
| Minimum annual leave |
20 days
|
| Annual leave includes public holidays |
No
|
| Public holidays per year |
9 days
|
Is 13th-month pay required in Switzerland?
None of the following are mandated by statute; they may still arise from a contract or collective agreement.
| Thirteenth-month pay required |
No
|
|---|---|
| Profit sharing required |
No
|
| Holiday bonus required |
No
|
How is severance calculated in Switzerland?
| Formula |
Statutory severance pay is mandated only under cumulative conditions: employee must be at least 50 years old AND have at least 20 years of service with the same employer. If conditions are met, employer must pay between 2 and 8 months' salary. Exact amount within range determined by judge considering all circumstances, unless specific amount (at least 2 months) is set by written, normal, or collective agreement. Employer contributions to occupational pension plan (2nd Pillar) can be deducted from severance amount.
|
|---|---|
| Per-year multiplier |
Not available
|
| Minimum qualifying tenure |
240 months
|
| Calculation base |
Gross salary
|
Worked example
An employee with 5 years of service and annual salary of CHF 34,500 would receive CHF 0 in statutory severance pay. Employee does not meet minimum qualifying conditions of being at least 50 years old and having at least 20 years of service.