Employment taxes

• Income tax: Taxes are relatively low but vary by canton. You'll pay federal, cantonal, and municipal tax. On average, total income tax ranges from 10–30%.
• Social security contributions: Employees contribute around 6.375% of their salary, covering pension (AHV), disability (IV), unemployment, and more. Employers contribute about the same.
• Withholding tax: If you’re a foreign worker without permanent residency, taxes are typically withheld from your salary.

Leave policy

• Paid vacation: At least 4 weeks per year (5 for people under 20), but many employers offer more.
• Sick leave: Paid sick leave is guaranteed, typically covered by the employer for a limited time, then insurance kicks in.
• Maternity leave: 14 weeks paid at 80% of salary (more in some cantons).
• Paternity leave: 2 weeks paid at 80%.
• Parental leave: No statutory parental leave beyond maternity/paternity, but some companies offer flexible options.

Employment termination

Swiss law allows for fairly flexible termination terms, but certain rules apply to ensure fairness and protection for both the employer and the employee.

Terminations must be justified and must not be discriminatory. Common valid reasons include:

• Performance issues
• Business restructuring or financial hardship
• Misconduct or breach of contract
• Long-term inability to work (after other options are explored)

Notice periods are required on both sides and vary by the length of employment:

• During probation (up to 3 months): 7 days’ notice
• 1st year: 1 month
• Years 2–9: 2 months
• 10+ years: 3 months

Hiring and contracts

In Switzerland, employment contracts must be in writing and signed by both parties and they must include: job titles and duties, salary and payment terms, working hours and location, vacation and benefits, termination terms and notice period, probation period (if applicable).

Types of contracts:

• Open-ended (permanent) – Most common
• Fixed-term – Ends on a specific date, no notice needed unless extended
• Part-time/hourly – Often used in hospitality, retail, or for students
• Freelance/Independent contractor – Must meet legal criteria to avoid being reclassified as employment

Switzerland has four official languages (German, French, Italian, Romansh). Contracts are usually written in the language of the local canton, but for international hires, English versions are often provided for clarity, although only the local language version may be legally binding.

Probation period is mandatory for open-ended contracts and the maximum probation period is 90 days.

Payroll and salary payments

• National minimum wage: There’s no national minimum wage by law. However, the Collective Bargaining Agreement (CBA) sets a minimum annual salary of CHF 59,296.12 gross for full-time employees. Each canton applies minimum hourly wages ranging from CHF 19 to CHF 24.
• Salary payments: Salaries are paid monthly, and the 13th-month salary is common (especially in corporate, finance, and administrative roles) and may be split across the year or paid as a bonus in December.

Benefits

Mandatory:

• Social Security Contributions
• Occupational Pension
• Accident insurance
• Sick leave
• Maternity, paternity, and parental leave.

Optional (but common): private health or dental insurance, additional paid leave, bonus schemes, enhanced occupational pension contributions, meal vouchers or subsidized canteens, transportation allowances or subsidies, training and development opportunities, childcare support, wellness programs.

Monthly living costs (Bern Edition)

• Rent: CHF 1,000-1,800/month for a 1-bed in the city.
• Groceries: Around CHF 400-600/month
• Transport: CHF 60-120/month for a public transport pass
• Coffee, drinks & going out: Coffee? CHF 4-5. Beer? CHF 6-8. Dinner for two at a mid-range restaurant? CHF 80-120
• Utilities & Internet: Around CHF 200-300/month combined

How to get a local ID number

Once you move to Switzerland and register your address at your local municipal office (within 14 days of arrival), you’ll receive a Swiss social security number (AHV number). This number is needed for taxes, healthcare, and employment.

Remote workers based in Switzerland should still register if they stay longer than 90 days.

Social security registration

Employers must register new hires with the Swiss social security system. This covers:

• Pension (AHV)
• Disability (IV)
• Accident insurance
• Family allowances

Your contributions are deducted automatically from your salary.

Banking

You’ll need a Swiss bank account to receive your salary. To open one, bring:

• Passport/ID
• Residence permit
• Proof of address

Popular banks: UBS, Credit Suisse, PostFinance, Raiffeisen.

Housing and rental process

• Finding a place: Use platforms like Homegate, ImmoScout24, or Comparis.
• Deposits: Typically 1-3 months' rent.
• Tenant rights: Very strong, rent increases must follow strict rules, and eviction requires valid cause.
• Leases: Standard rental periods are annual, but flexible options exist in larger cities.

Healthcare system

• Mandatory: You must purchase private basic health insurance (KVG) within 3 months of arriving.
• Cost: Around CHF 300–400/month per person.
• Coverage: Basic insurance covers general care; supplemental plans are available for dental, vision, or private hospitals.

Driving and public transport

• Public Transport: Ultra-efficient, clean, and always on time. Consider a Swiss Half Fare or GA Travelcard if you commute.
• Driving: You can use your foreign license for 12 months, then you must exchange it for a Swiss one (some countries require a driving test).

Emergency and important contacts

• Police: 117
• Fire: 118
• Ambulance: 144
• Medical Emergency (Poison Control): 145
• Road Assistance: 140
• EU Emergency: 112

Work permits and visa requirements

For EU/EFTA citizens:

• No visa required
• Register within 14 days of arriving
• Apply for a residence permit (usually L or B type)

For non-EU citizens:

• Must secure a job before applying
• Employer must prove no Swiss/EU candidate could fill the role
• Work and residence permits are linked

Business culture and work norms

• Punctuality is king. Being late? Don’t.
• Communication is direct and respectful.
• Work hours: 40–42 hours/week is standard.
• Lunch breaks are sacred.
• Hierarchy matters more in German-speaking regions, while French/Italian-speaking cantons may be more relaxed.