HR Software for Switzerland

Leave Policy

Maternity Leave

Pregnant employees who have worked 270 consecutive days are entitled to 14 weeks (16 weeks in the canton of Geneva) of paid leave. Eight weeks of this must be taken after the birth of the child. During this period, the employee receives 80% of the salary, up to a maximum of 196 CHF per day, and social security is responsible for this salary. The employee can extend the vacation for a further 14 days without pay.

You can use the leave module in IceHrm to manage maternity leave in Switzerland.

Paternity Leave

Employees who have worked 270 consecutive days are entitled to 10 working days of paid paternity leave. The leave must be taken within six months of the birth of the child. The employee receives 80% of the salary during this period, up to a maximum of 196 CHF per day, and social security is responsible for this salary.

The employee may request to extend the vacation, although this is at the discretion of the employer.

Parental Leave

Parental leave is not regulated by law in Switzerland. However, employees may be entitled to maternity and paternity leave.

Sick Leave

Employees are entitled to paid sick leave for up to 730 days within a 900-day period. Sick leave is managed in two ways in Switzerland.
The employer has daily sickness benefit insurance:
0-30 days: 100% of the employee’s regular salary is paid by the employer
31-730 days: 100% of regular salary, 80% by insurance and 20% by the employer.

The employer has not taken out daily sickness benefit insurance:
Paid at 100% of the employee’s regular salary, with entitlement to sick pay limited depending on length of service.
1st year of employment: 3 weeks
2nd year of employment: 1 month
3rd and 4th year of employment: 2 months
5th to 9th year of employment: 3 months
10+ years of employmentL 4 months

Pay & Tax

Minimum Wage Requirements

There is no national legal minimum wage in Switzerland. However, the collectively agreed minimum wage for a full-time employee is CHF 59,296.12 gross per year. Some cantons apply minimum wages per hour:

  • Canton of Neuchâtel – CHF 20.77
  • Canton of Jura – CHF 20.60
  • Canton of Geneva – CHF 24
  • Canton of Ticino – CHF 19
  • Canton of Basel-Stadt – CHF 21

Individual Income Tax

Personal income tax ranges from 1% to 24%. Income tax is calculated according to progressive rates and the location (canton) of the employee. Several additional factors can affect overall rates, such as: the household status and the number of children.

Payroll Cost

The cost to the employer is generally estimated at 10-20% of the employee’s wages. The variation depends on the canton, age, salary and various conditions.

  • Retirement capital and disability insurance – 5.3%
  • Unemployment insurance – 1.1%
  • Pension fund – estimated 8%
  • Accident insurance:
    • 0.1204%+
    • 0.1075%+
    • 0.1340% only for employees who earn more than 12,350 CHF
  • Health insurance – 0.64%
  • Family fund – 1.6%
  • Management fee of the compensation fund – 0.011%
  • Costs of joining the GAV – 0.3% for employees who earn less than CHF 12,350
  • WFH allowance – CHF 150 (pro rata for part-time employees)

Please note: Most employer costs have thresholds and maximum wages used in the calculation, so percentages may vary. The exact pension fund contribution is calculated based on the employee’s information.

These costs are estimates and are for general information purposes only. To fully understand all associated costs and fees associated with the terms of an employment contract for this country, please contact our sales team for a quote.

Overtime Pay & Maximum Hours

The standard working hours are 8 hours per day and 40 hours per week. Standard working hours are Monday to Friday. Normal weekly working hours can be between 38.5 and 42.5 hours.

Pay for overtime is not mandatory and may be included in the salary, depending on what is agreed in the employment contract. Employees can work a maximum of 45-50 hours of overtime. Employees can receive compensation for additional hours:

  • 125% of the hourly rate for up to 45 hours per week for industrial, office, technical and sales staff.
  • 125% of the hourly rate, up to 50 hours per week for other industries.

Termination

Termination Requirements

Dismissals must take into account complex rules and the regulations of the country in which an employee is employed. Off-boarding is always carried out by the employer with the main participants. It may include ad hoc fees as well as required or recommended steps in certain termination cases.

Terminations in Switzerland can be complex and depend on the terms of the contract and the agreements made between the parties.

Legally compliant terminations are:

  • Voluntary by the employee
  • By mutual agreement
  • Unilaterally by the employer due to:
    • Probation period
    • Objective reasons
    • Disciplinary dismissal
    • Performance of the employee
  • When the contract expires

Impermissible terminations include:

  • Fixed-term employment contracts before the end date.
  • Termination during the employee’s illness or accident; The protection depends on the length of service:
    • 30 days in the first year of employment
    • 90 days between the second and fifth years
    • 180 days from the sixth year

In all these cases, the employer must wait for the employee to return to work before dismissing him. However, the employee can terminate his contract during the protection period.

Notice Period

The minimum notice period is 30 days and increases depending on the length of employment.

  • 30 days with one year of service
  • 60 days if you have been with the company between the second and ninth year
  • 90 days if you have been with the company for more than ten years.

During the probationary period, the notice period is seven calendar days.

Severance for Employees

In Switzerland there are no legal regulations for severance payments for employees under the age of 50 or with more than 20 years of service. During the notice period, the employee receives the usual wage.

Statutory Time Off

Paid Time Off

Employees who are younger than 20 or older than 50 are entitled to 25 days of vacation per year, as specified in the collective agreement.

Public Holidays

There are 3 national holidays in Switzerland:

  • National holiday: August 1st
  • Ascension of Christ
  • Christmas Day: December 25th

In addition, there are 6-8 regional holidays that vary depending on the canton.

Onboarding

Onboarding

Onboarding takes 3 working days.

Additional Info

Employment Contract Details

Contracts must be in writing and signed by both parties.

A contract must contain:

  • Surname
  • Start date
  • Length of employment
  • Job descrption
  • Salary
  • Conditions for termination of employment
  • Insurance benefits

Probation Period

A probationary period is required for permanent contracts. The maximum duration of the probationary period is 90 days (3 months).