Switzerland HR Information

Updated on: 2025/03/11 04:48 (UTC)

Overview

There are several sources of labor law in Switzerland. The federal Code of Obligations, for example, sets out standards on matters including employment contracts and termination of employment, while the Federal Labor Act contains standards for many conditions of employment, including hours of work and overtime pay.

Hiring

Employment Contracts

Most employees in the private sector have an employment contract that dictates the terms of their employment. If there is a collective labor agreement, that agreement may specify such terms.

The Code of Obligations requires written employment contracts for certain employees, such as traveling salespeople, before any work begins. In other situations, the initial employment contract may be oral.

An employer, however, must inform an employee in writing of the minimum terms of employment within one month after work begins, although an employer’s failure to do so does not automatically void the employment contract.

At a minimum, an employment contract must include:

• the names of the employee and the employer,
• the start date of the contract,
• a description of the work to be done,
• compensation and any bonuses, and
• working hours.

Other provisions may include the length of a probationary period and the period of required notice before either party terminates the employment relationship.

The Code of Obligations provides for probationary periods of up to three months.

If not otherwise addressed in the employment contract, the period is one month. Either party may terminate the contract during the probationary period by giving seven days’ notice. Employers and employees may agree to forgo the probationary period or to extend it up to three months, but any deviation from the one-month period must be in writing.

The general rules of employment set forth in the Code of Obligations apply to temporary workers, although case law addresses such specific issues as holiday entitlements. There is no limit to the duration of a fixed-term contract, although if the same parties enter into successive employment contracts without an objective reason to do so, a court may consider that they have in fact entered into an employment agreement for an unlimited period. In this case, provisions governing employment agreements of unlimited period (such as notice periods in the case of dismissal) will apply. A fixed-term contract terminates on the last day of its validity, and it is not necessary to issue a notice of termination. Under Swiss law, the employer cannot prematurely terminate a fixed-term contract by paying the employee severance in lieu of notice unless the employee agrees.

Restrictions on Hiring

The minimum age for employment is 15 with exceptions for running errands or performing light work and for work in cultural or artistic events, sports, or advertising. The employment of workers under 18 is restricted in hours and occupations.

Employers must give priority in hiring to Swiss citizens, foreign nationals with long-term residence permits or residence permits allowing employment and citizens of other EU/EFTA member states. Employers must prove that they have not been able to recruit a suitable employee from these priority categories despite intensive efforts.

Employers seeking to hire foreign nationals for occupations with an unemployment rate of 5 percent or above must test the Swiss labor market. Positions in these occupations must be registered with the local employment office, which will advertise the position online for five days. During this time the employer cannot advertise the position publicly. If no suitable candidate is found during those five days, the employer can begin advertising the position publicly.

Vacant positions must be registered with the Regional Employment Offices together with a request to register the vacancy in the European Employment System. Once a potential employee has been put in contact with the employer and subsequently turned down, the employer is sent a questionnaire to explain why the applicant was not hired. The employer must also explain to the authorities why the search for a suitable candidate by means of the recruitment channels used in the specific industry—such as specialist journals, employment agencies, online job listings and corporate websites—was not successful.

Recordkeeping

Employers are required to keep strict records regarding hours worked and any rest periods exceeding 30 minutes.

Under a directive from the State Secretariat for Economic Affairs issued in 2014, only top-level managers (directors or chief executives) are not covered by the recordkeeping requirements of the Federal Employment Act.

Employees enjoying a considerable degree of discretion as to how they plan and organize their work are subject to simplified recordkeeping requirements. Employers need only document daily hours worked. This relaxation of the recordkeeping rules is permissible only if employees agree to it in writing. All other employees remain subject to the Employment Act and their working hours and rest breaks must be documented.

Background Checks

Background checks on job applicants are only permitted with the applicant’s explicit consent and are strictly limited to information that relates to the applicant’s suitability for the job.

Noncompetition Agreements

Noncompete agreements are allowed only with workers who have enough knowledge of the employer’s customers, business, or trade secrets to cause the employer harm after an employment relationship is terminated. Agreements must be reasonable in terms of the geographical areas, time periods, and types of businesses employees agree not to compete in and cannot remain in effect for more than three years.

Reference Citations

Employment Contracts: Swiss Code of Obligations, March 30, 1911, arts. 330-335

Restrictions on Hiring: Federal Law on Work in Industry, Trade and Commerce of March 13, 1964, art. 30 (German); Federal Act on Foreign Nationals, Dec. 16, 2005, arts. 18, 20-21

Noncompetition Agreements: Swiss Code of Obligations, March 30, 1911, art. 340(g)

Immigration and Work Permits

In General

Nationals from European Union or European Free Trade Association countries generally do not need a work permit for short-term employment of up to three months or 90 days per calendar year. For employment of more than three months, a residence permit from the canton of residence is required. Tighter restrictions are imposed on the hiring of third-country nationals (non-EU/EFTA citizens), including a quota system that limits the number of long- and short-term visas that are issued each year. A labor market test is required if an employer intends to employ third-country nationals.

Visas and Work Permits

Switzerland allows temporary stays for business visitors, students and highly skilled workers. It also provides a mechanism for permanent residence, typically after a qualifying period of temporary stay has been met. Each of the 26 cantons is responsible for interpreting and enforcing the federal immigration law.

Under the Agreement on Free Movement of Persons in Europe, nationals from the EU or EFTA countries generally do not need a work permit for short-term employment of up to three months or 90 days per calendar year. For employment of more than three months, a residence permit from the canton of residence is required.

Tighter restrictions are imposed on the hiring of third-country nationals (non-EU/EFTA citizens), including a quota system that limits the number of long- and short-term visas that are issued each year. The quotas are divided among the cantons and released on a quarterly basis. By the middle to end of each quarter the quota limits are usually met, which means applications can be delayed until the quotas for the next quarter are released.

A labor market test is required if an employer intends to employ third-country nationals. This means that the employer has to demonstrate that no suitable employee could be recruited in the Swiss, EU or EFTA labor markets. Additionally, visas for third-country workers are limited to management-level employees, specialists and other qualified workers. Other criteria that the government will consider is how well the individual is likely to integrate into society, which entails looking at the person’s age, language skills, and ability to adjust to new occupational and social environments.

The various types of work permits for third-country nationals are as follows:

• Permit L is a short-term residence permit that allows employees to stay in Switzerland for up to one year. The L permit is tied to the terms of the employment contract and may be extended in exceptional cases for an additional year if the employee continues to work for the same employer.
• Permit B is an initial or temporary residence permit that is valid for one year but can be extended annually as long as there are no grounds for it not to be reissued, such as the holder being dependent on welfare benefits. These permits are issued on a quota basis and are tied to one employer. The permits often require that the employee continue to live in the canton that issued the permit.
• Permit C is a permanent residence permit for employees who have been living for 10 continuous years in Switzerland, five years in the case of U.S. citizens.

Penalties

Under the Federal Act on Posted Workers, a fine of up to 40,000 francs can be imposed on any employer that:

• knowingly provides false information or refuses to provide information;
• opposes the control of the competent authority or in any way hinders the control;
• does not comply with a legally binding ban to provide services; or
• employs workers in Switzerland and systematically and profitably violates the minimum wage requirements.

In addition, employers can be fined up to 1 million francs for systematic violations against minimum working and wage conditions.

Reference Citations

Visas and Work Permits: Federal Law on Foreigners, December 16, 2005, arts. 3-6

Nondiscrimination

In General

Discrimination based on national origin; race; sex; age; language; social position; lifestyle; religious, political or philosophical beliefs; physical, mental, or psychological deficiencies; marital status; family situation; or pregnancy is prohibited.

Discrimination against an employee based on age, religion, race, or sexual orientation or the infliction of emotional abuse on an employee may be considered a breach of contract and make the employer liable for damages. Employers are also liable if they fail to reasonably protect an employee who is a victim of harassment by other employees.

Gender Discrimination

The Federal Equality Act prohibits discrimination against workers based on gender, marital status, family situation or pregnancy in hiring, work assignments, working conditions, compensation, training and professional development, promotion, or termination. An employee with a sex discrimination complaint may take the matter to conciliation before instituting legal action and under some cantonal law is required to. The act provides remedies for discrimination, including injunctions and remedial wage payments.

The Federal Equality Act includes sexual harassment in its definition of illegal discrimination. It defines sexual harassment as unwelcome conduct of a sexual nature that undermines the dignity of a worker, including quid pro quo harassment or threats, promises or pressure to obtain sexual favors.

Pay Equity Audit: Effective July 1, 2020, companies with 100 or more employees must conduct an internal wage equality analysis. The analysis must examine all contributions for work performed by employees, including the actual basic wage and all social wage components such as family, local and child allowances, and benefits in kind. The analysis must be reviewed by an independent body. Companies must publish the result of the analysis in their annual report and inform their employees of the results of the analysis no later than one year after completion of the review. The analysis must be conducted every four years, unless the analysis shows there is no systematic gender wage gap.

Reference Citations

Nondiscrimination: Swiss Code of Obligations, March 30, 1911, art. 328

Gender Discrimination: Federal Act on Gender Equality, March 24, 1995, art. 1

Employee Privacy

Employee Data

The employer can only deal with and preserve personal data that have a direct connection to an employee’s ability to perform a certain job or with the performance of the employment contract. The Federal Data Protection Act governs how an employer can use these data. Generally, the employer cannot violate an employee’s personal rights, make use of the data in bad faith, or use the data disproportionately.

Employers must ensure that employee data is correct. If an employee’s data is incomplete or inaccurate, employers must take all reasonable measures to either correct or destroy the data.

Employee Monitoring and Surveillance

Employees must be informed beforehand about the method, scope, purpose, and timeframe of the monitoring. Anonymous surveillance of company-provided technology is permitted if employees are informed that they will be monitored.

Employees can be monitored without their consent if there is justified suspicion of criminal offense or there is no overriding interest of the employee.

Reference Citations

Employee Data: Federal Act on Data Protection, June 19, 1992, arts. 4-5

Employee Monitoring and Surveillance: Federal Act on Data Protection, June 19, 1992

Compensation

Hours of Work

Under the Federal Labor Act, the maximum number of hours in a workweek is 45 for industrial workers, office personnel, sales staff in large retail stores and some others. The limit for other employees is 50 hours per week.

Employees are entitled to a rest break of at least 15 minutes if the workday is between 5 and one-half hours and seven hours long, at least half an hour if the workday is between seven hours and nine hours long and one hour if the workday is nine or more hours long.

Minimum Wage

There is no mandated minimum wage under Swiss law.

Overtime

Employees are entitled to 25 percent extra pay for overtime hours or, if workers agree, to compensatory time off. The daily limit for overtime is generally two hours, and the annual limit is 170 hours for workers whose regular workweek is 45 hours long and 140 hours for those whose regular workweek is 50 hours.

Employees required to perform work on Sundays and public holidays are entitled to a pay increase of 50 percent.

Wage Payment

Wages must be paid at the end of each month or according to terms in the employment contract or collective labor agreement. The employee is to be given a written salary statement, and the salary is to be paid in legal currency, unless otherwise agreed upon or customary.

An employer can make the following deductions from employee wages:

• taxes,
• contributions to the old age and survivors’ insurance fund,
• invalidity (disability insurance) fund contributions,
• loss-of-earnings insurance fund contributions,
• unemployment insurance fund contributions,
• accident insurance (workers’ compensation) fund contributions, and
• pension fund contributions.

Mandatory Bonuses

Many employers pay a bonus equal to one month’s salary towards the end of the calendar year known as the 13 month’s salary, though this is not mandatory.

Reference Citations

Hours of Work: Federal Law on Work in Industry, Trade and Commerce of March 13, 1964, arts. 9-10 (German)

Overtime: Federal Law on Work in Industry, Trade and Commerce of March 13, 1964, arts. 11-13 (German)

Wage Payment: Swiss Code of Obligations, March 30, 1911, art. 323

Benefits

Vacation

Employees are entitled to four weeks of paid vacation per year, of which at least two weeks must be consecutive. Employees under the age of 20 are entitled to five weeks’ paid vacation.

The employer determines the timing of the holidays taking into account the employees’ preferred dates to the extent they are compatible with the organization’s business needs.

Holidays

Public holidays vary across Switzerland, some holidays widely observed nationwide, other religious and local holidays observed only in certain cantons. Technically, the only official public holiday recognized in Switzerland is National Day, August 1.

If a public holiday falls on a Saturday or Sunday, it will not be moved to a weekday. Employees who work on a public holiday are entitled to a 50 percent premium in addition to their regular rate of pay. Employers may only select employees who consent to work on holidays.

Maternity Leave

All female employees are entitled to maternity leave for 14 weeks after the birth of a child.

Under Switzerland’s mandatory loss-of-earnings insurance program, employees who have worked for the same employer for at least three months and contributed to the social security system for at least nine months, five of which were spent in employment, may receive 80 percent of their regular pay as a daily allowance for 14 weeks after childbirth subject to a maximum 196 francs per day. If an employee does not qualify for this program, she is entitled to take leave under the sick leave provisions of the Code of Obligations.

Effective Jan. 1, 2023, parents who adopt a child younger than four years are entitled to two weeks’ paid leave within one year of the adoption. The full two weeks can only be taken by one parent. Alternatively, each parent can split the two weeks between them.

There are no specific provisions for maternity leave before the birth of a child, but pregnant employees can take sick leave during this time if they cannot work.

During a worker’s pregnancy, an employer:

• must ensure her job does not threaten her health, providing other work if necessary;
• must allow her to take unpaid leave if she desires;
• may not require her to work overtime; and
• may not allow her to work between 8 p.m. and 6 a.m. after the eighth week prior to birth.

A woman is not allowed to return to work for the first eight weeks after the birth of a child. Following her return to work, the employer:

• must continue to ensure the job does not threaten the employee’s health,
• cannot require her to work overtime, and
• must provide her adequate paid time for breast-feeding.

Employers may not terminate pregnant workers or new mothers for the first 16 weeks after childbirth.

Paternity Leave

Working fathers are entitled to ten days of paternity leave following the birth of their child. The leave must be taken within six months of the birth and can be taken per single day or consecutively. To be eligible, the employee must have been working for the employer for at least five months and covered by the old age and survivor’s insurance scheme during the past nine months.

Effective Jan. 1, 2023, parents who adopt a child younger than four years are entitled to two weeks’ paid leave within one year of the adoption. The full two weeks can only be taken by one parent. Alternatively, each parent can split the two weeks between them.

Sick Leave

All persons residing or gainfully employed in Switzerland are entitled to sickness benefits. The insured pay premiums, which vary depending on the fund, the type of benefits provided, the age first insured and the canton. Employers are not required by law to contribute, but some collective agreements require the employer to share employees’ membership fees.

Swiss law requires employers to continue to pay employees who are unable to work due to illness and who have been employed for at least three months for between one and three weeks (depending on the canton) in the first year of employment and for longer periods at full pay proportionate to longer periods of employment. Cantons specify sick leave limits after an employee’s first year. Employers may require a medical certificate for any absence longer than three consecutive days due to sickness.

Other Leave

Employees under 30 years of age are entitled to one week of leave without pay per year to do volunteer work for a social or cultural organization. In addition, employers must provide leaves of absence to employees for the performance of their compulsory military duties.

Parental leave in case of death: Effective Jan. 1, 2024, the surviving parent is entitled to additional maternity or paternity leave if the other parent dies immediately after the birth of their child.

Pensions and Social Security

Switzerland has three “pillars” to support income for retired workers: the social security old-age pension, occupational pension plans and voluntary private pensions. The old-age pension plus the occupational pension are intended to provide eligible retirees with about 60 percent of their last income before retirement.

Old-age pension. Men at 65 years of age and women at 64 may retire and collect an old-age pension if they have made at least one year of contributions into the system. The amount of the pension depends on a person’s years of contributions and his or her income. The pension is reduced if a person retires at an earlier age and increased if a person retires later. Old-age and survivors’ insurance, disability insurance and unemployment insurance are partially funded through employer and employee contributions (5.15 percent of salary each). The federal government and the cantons pay part of the fund’s expenses.

Occupational pension plan. This type of plan is sponsored by the employer and established and governed as an entity separate from the old-age pension. An employer is required to register its employees with an occupational retirement plan, and both the employer and the employee make contributions, the amount of which depends on the plan and the salaries to be insured.

Voluntary private pension. Employees can enroll in individual plans, such as life insurance or savings plans.

Workers’ Compensation

Employers are required to get accident insurance (workers’ compensation), which covers all employees in Switzerland, including apprentices and volunteers.

Suva (the Swiss National Accident Insurance Fund), an independent nonprofit company under public law, and other private insurance carriers provide the compensation, and the employer and the employee pay premiums for different parts of the coverage.

Employees who suffer a work-related accident or disease that causes at least a 40 percent disability are entitled to medical treatment, such as prescription drugs, tests, hospitalization, prostheses and treatment for rehabilitation.

Reference Citations

Vacation: Swiss Code of Obligations, March 30, 1911, art. 329 (a)(c)

Holidays: Swiss Code of Obligations, March 30, 1911, art. 78

Maternity Leave: Swiss Code of Obligations, March 30, 1911, art. 329(a)-(c); Federal Law on Work in Industry, Trade and Commerce of March 13, 1964, arts. 35-35(b) (German)

Sick Leave: Swiss Code of Obligations, March 30, 1911, art. 328(a)

Other Leave: Swiss Code of Obligations, March 30, 1911, arts. 329(e), 336©

Pensions and Social Security: Constitution of Switzerland, 1999, art. 113

Workers’ Compensation: Constitution of Switzerland, 1999, art. 117

Labor Relations

In General

The constitution guarantees the freedom to join or not to join a trade union, and it is unlawful to dismiss an employee on the grounds of membership or nonmembership in a trade union or involvement in union activities. Each canton has its own procedure for settling labor disputes, usually through mandatory conciliation and court proceedings.

The constitution provides certain categories of employees with the right to strike and employers with the right to conduct lockouts.

Employees of enterprises with more than 50 workers may elect representatives to form workers’ committees with which the employer must consult on safety issues and impending collective dismissals of employees, among other matters.

In cases where a business is sold or transferred, the successor employer becomes responsible for its predecessor’s rights, privileges, and duties towards the employees under the collective agreement.

Right to Organize

The constitution guarantees the freedom to join or not to join a trade union. The Code of Obligations prohibits an employer from dismissing an employee on the grounds of membership or nonmembership in a trade union or involvement in union activities.

Works Councils

The Swiss Federal Act on Employee Information and Participation in Operations provides that in enterprises with at least 50 employees, the employees are entitled to request the election of a workers’ committee. The employer must inform and consult the representatives about safety issues and impending collective dismissals of employees, among other matters. In the absence of an employee request, employers are not obliged to establish a workers’ representative body on their own initiative.

Dispute Resolution

Each canton has its own procedure for settling labor disputes, usually through mandatory conciliation and court proceedings. For collective labor disputes, there is a Federal Office for Conciliation in Collective Labor Disputes and specialized agencies in the cantons. The federal office may also get involved in disputes involving workers in more than one canton if requested to do so by the parties.

Strikes and Lockouts

The constitution provides certain categories of employees with the right to strike and employers with the right to conduct lockouts. The parties have a duty, however, to try to resolve a dispute first through conciliation.

Successorship Clauses

In cases where a business is sold or transferred, the successor employer becomes responsible for its predecessor’s rights, privileges, and duties towards the employees under the collective agreement.

Reference Citations

Right to Organize: Swiss Code of Obligations, March 30, 1911, arts. 336(g); Constitution of Switzerland, 1999, art. 23

Works Councils: Federal Law on Informing and Consulting Workers, Dec. 17, 1993, arts. 1-4 (German)

Strikes and Lockouts: Constitution of Switzerland, 1999, art. 28

Successorship Clauses: Swiss Code of Obligations, March 30, 1911, art. 333

Safety, Health and Security

In General

Employers have an obligation to protect their employees’ safety and health and to ensure that facilities and equipment are safe, that workers have specialized clothing where needed, that there are proper fire prevention measures and training, that workers are protected from harmful substances, and that workers in some fields get preventive medical exams, among other things.

Workplace Safety and Health

Under the Code of Obligations and the Federal Labor Act, employers have an obligation to protect their employees’ safety and health. The Ordinance on the Prevention of Occupational Accidents and Diseases includes regulations on workplace safety, requiring employers to ensure that facilities and equipment are safe, that workers have specialized clothing where needed, that there are proper fire prevention measures and training, that workers are protected from harmful substances and that workers in some fields get preventive medical exams, among other things.

Drug and Alcohol Use

Federal law bans smoking in enclosed public spaces and in work spaces shared by several people. Employers can set up smoking areas as long as they are well ventilated. Individual cantons can pass stricter prohibitions.

Reference Citations

Workplace Safety and Health: Swiss Code of Obligations, March 30, 1911, art. 328; Ordinance on the Prevention of Occupational Accidents and Diseases, Dec. 19, 1983, art. 3 (French)

Drug and Alcohol Use: Federal Law for Protection Against Passive Smoking, arts. 1-2 (French)

Termination

Termination by Employer

If notice requirements are not set out in the employment contract or the collective labor agreement, the employer or the employee must give written notice of termination as follows:

• during a probationary period of employment (which may not exceed three months), seven days;
• after the probationary period but during the first year of service with the employer, one month;
• during the second through the ninth years of service, two months; and
• after the ninth year of service, three months.

An employer or employee may terminate a contract without notice if there is just cause, which is generally defined in the Code of Obligations as being a condition that prevents one of the parties in good faith from being able to continue the employment relationship. Either party may seek compensation from the other party for the damage caused. If the employer terminates the contract without a significant reason, it must compensate the employee for damage and pay a penalty of up to six months’ remuneration.

An employee cannot be dismissed during certain protected periods:

• during absence from work due to illness or accident,
• during pregnancy,
• within 16 weeks after childbirth, or
• during military or civil service.

Dismissal is also prohibited if it is:

• due to an inherent quality in the worker, unless this relates to employment or seriously mars the operation of the business;
• because of a worker’s exercise of a constitutional right, unless that action violates an employment contract or seriously mars the operation of the business;
• done to prevent a worker’s legal claim or in retaliation against a claim under an employment contract, or
• part of a mass layoff not conducted in accordance with the rules for collective dismissals.

An employee may also contest a termination as an unfair dismissal on grounds of age, race, religion, or membership in a political party or trade union.

An employer must give a departing employee a written job reference or an attestation of employment. The former employee must have this document to apply for unemployment benefits.

Plant Closings and Mass Layoffs

A notice period of 30 days is required for a dismissal based on collective redundancy. A collective dismissal is comprised of at least:

• 10 employees in businesses with 20 to 100 employees,
• 10 percent of the employees in businesses with 100 to 300 employees, and
• 30 employees in businesses with more than 300 employees.

The employer must consult with the employees or their representatives, giving them an opportunity to suggest alternatives to the layoffs and inform the cantonal employment office of the canton in which the business is located.

Payment on Termination

An employee who is at least 50 years old with 20 years or more of service is entitled to severance pay, which may be determined by written agreement, employment contract or collective agreement but must be at least two months’ regular wages. The amount may be reduced or eliminated if the employee terminated the employment relationship without just cause or the employer terminated it for cause.

If the employment relationship ended because the worker died, the worker’s spouse and children are entitled to the severance pay. If the employee is entitled to payments from a social security scheme funded in whole or in part by the employer, the employer is not obligated to make a severance payment.

Unemployment Insurance

Unemployment benefits generally are 70 percent of average pay received in the last six months of employment, 80 percent for a person with children. Benefits begin after a waiting period of five days of verified unemployment and can continue for two years from the date of registration.

To qualify for unemployment benefits, an applicant must have worked for at least 12 months during the past two years in an activity in which contributions to the unemployment insurance fund are required. The insured must be totally or partially unemployed, have at least two consecutive unpaid working days, reside in Switzerland, have completed mandatory schooling, not be receiving a basic old-age pension and be able and willing to work.

The employer and the employee each pay half of the unemployment insurance premium. The employer is responsible for making the deduction from an employee’s paycheck.

Reference Citations

Termination by Employer: Swiss Code of Obligations, March 30, 1911, art. 335 (French)

Plant Closings and Mass Layoffs: Swiss Code of Obligations, March 30, 1911, art. 335(G) (French)

Unemployment Insurance: Unemployment Insurance Act, June 25, 1982, arts. 2-8 (French)

Personal Taxes

Residency Requirements

Individuals are regarded as tax residents of Switzerland if:

• they are residing in the country with the intention of staying permanently,
• Switzerland is the center of their personal and economic interests, and
• they are employed for a period of more than 30 consecutive days in Switzerland.

Taxable Income

Foreign nationals who qualify as tax residents are subject to Swiss income tax on their worldwide income, nonresidents only on income whose source is in Switzerland. Taxable employment income includes all benefits originating from an employment contract, whether in cash or in kind. In addition to salary, taxable employment income includes bonuses, commissions, overseas adjustments, cost of living allowances, tax reimbursements, the private use of a company car, and housing allowances

Tax Rates

Switzerland’s federal income tax rates are levied on a progressive scale, with rates ranging from zero to 13.2% for single taxpayers without children who are minors and from zero to 13% for married taxpayers and single taxpayers with children who are minors. Income taxation in the 26 cantons consists of cantonal income tax, income taxes of communities (municipalities) within the cantons, and church income taxes (if the canton is religiously affiliated).

Nonresident individuals are liable to tax in Switzerland on a limited basis if they engage in a gainful activity in Switzerland. The Swiss personal income tax ranges from around 21.6 percent to around 46.2 percent (depending on the canton and municipality of residency).

The Swiss social security system includes a variety of schemes. The most important are:

• old-age and survivors’ insurance;
• disability insurance;
• income compensation insurance; and
• unemployment insurance.

Reference Citations

Tax Rates: Swiss Code of Obligations, March 30, 1911, art. 335 (French)

Web References

In English or German, as noted.

Laws and Regulation

Act on Compensation for Loss of Earnings (German)

Code of Obligations (English)

Constitution of Switzerland (English)

Federal Act on Accident Insurance (German)

Federal Act on Data Protection (English)

Federal Act on Old-Age and Survivors Insurance (German)

Federal Act on Protection Against Passive Smoking (German)

Federal Act on Social Insurance (German)

Federal Act on Unemployment Insurance (German)

Federal Gender Equality Act (English)

Federal Labor Act (German)

Federal Law on Foreigners (English)

Ordinance on the Prevention of Occupational Accidents and Diseases (German)