Payroll
/
Switzerland
Global coverage
Available in +150 countries
Employer costs, taxes, minimum wage and leave rules for hiring here, plus the faster route: hire a contractor with Ontop, no local entity needed.
2026
Currency
CHF Fr (Swiss Franc)
Employer contributions
~5.3% AHV + 1.1% ALV + 0.5% pension (BVG min)
Minimum wage
No federal minimum (cantonal: Geneva CHF 24.32/hr, Basel-Stadt CHF 21.00/hr)
Payment frequency
Monthly
Calendar year (Jan 1 to Dec 31)
Capital
Bern
Timezone
CET (GMT+1)
Employee or contractor
If the work is project-based or you need to move fast, a contractor gets you the same talent with a fraction of the paperwork.
Employee
~CHF 9,040 total
/month
For a gross salary of
CHF 8,000 gross/month
Setup
Local entity or employer of record, plus tax and social security registration
Employer contributions
~5.3% AHV + 1.1% ALV + 0.5% pension (BVG min)
Mandatory extras
13th Month Salary
Monthly admin
Monthly payroll → AHV/ALV by end of month → BVG to pension fund → tax withheld at source for non-residents
Contractor with Ontop
No local entity
$49
/contractor/month
The agreed rate, plus Ontop from $49 per contractor per month.
Sign a contract, yours or an Ontop template. No local registration on your side.
No employer contributions: the contractor handles their own taxes and social security.
One payment per invoice, in one payroll run.
Paid into their Ontop Global Account in USD.
See the full side-by-side comparison
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A contractor's rate usually covers their own taxes, so compare total cost, not just gross pay. Run your numbers in the contractor vs employee calculator.
Hiring here: the full breakdown
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Payroll guide
Employer costs come on top of gross pay. Use these figures to budget a hire and to compare it with a contractor rate.
Total monthly cost
~CHF 9,040 total
Example gross salary
CHF 8,000 gross/month
~CHF 5,200 net
Net pay to the employee
Tax and employee contributions
Withheld from gross pay
~CHF 1,040 employer SS
Employer contributions on that salary
Employer contributions
~5.3% AHV + 1.1% ALV + 0.5% pension (BVG min)
Employee contributions
~5.3% AHV + 1.1% ALV + income-dependent
Total cost above gross
~12-15% above gross (varies by canton)
Figures are estimates for planning. Rates change with each budget and can vary by sector, so confirm them before you make an offer.
What people earn here, from the legal floor to the main cities, plus the extra pay most employers budget for.
National average
~CHF 7,083
Per month
Zurich
CHF 7,500 - CHF 12,000
~25%
Geneva
CHF 7,000 - CHF 11,000
~20%
Monthly gross. National average salary per year:
~CHF 85,000
Minimum wage
No federal minimum (cantonal: Geneva CHF 24.32/hr, Basel-Stadt CHF 21.00/hr)
Paid:
Set by canton
Extra pay
13th Month Salary
Mandatory in many sector CBAs
December
Collective agreements can set sector minimums above the national one. Check whether one applies to the role before you set the salary. Next step: estimate the full cost of an employee.
Who collects what, how often, and what happens when a payment is late.
Income tax brackets
Federal: 0-11.5% + cantonal (e.g., Zurich ~6-13%)
Tax year:
Calendar year (Jan 1 to Dec 31)
Filing calendar
Monthly by end of month
Social security payments
March 31 (cantonal, varies)
Income tax
By end of January
Employee tax certificate
Lohnausweis
March 31 (cantonal, some extend to September)
Annual return
Steuererklärung
Late payment penalties
Late AHV: 5% annual interest; late tax: cantonal surcharges
Who collects what
ESTV / Kantonales Steueramt
Federal and cantonal income tax
AHV-Ausgleichskasse
Pension, disability, maternity compensation
SECO (State Secretariat for Economic Affairs)
Labor law and employment conditions
The time off and paid leave every employee is entitled to by law. Budget for it when you compare an employee with a contractor.
Annual leave
Ferien / Congés
20 days minimum (25 common)
Public holidays
9 federal + cantonal holidays (varies)
Sick leave
Krankentaggeld
80% via KTG insurance (employer arranges); first few days employer-paid
Maternity leave
14 weeks (maternity) / 2 weeks paternity
80% via EO (Erwerbsersatz)
The contracts you can use, and what ending an employment relationship costs.
Permanent
Unbefristeter Arbeitsvertrag
Fixed term
Befristeter Arbeitsvertrag
Independent contractor
Selbständigerwerbender / Freischaffender
Collective agreements
Gesamtarbeitsvertrag (GAV)
Ending employment
Kündigungsentschädigung
How it is calculated
Contractual notice period; no statutory severance beyond notice
Calling someone a contractor does not make them one. If the role works like employment in practice, local authorities can reclassify it, with back contributions and penalties.
The errors that most often trigger back payments and penalties here, and what to do instead.
Quellensteuer (Withholding Tax) Errors for Foreign Workers
Risk Level: HIGH
Non-Swiss residents must have income tax withheld at source (Quellensteuer) by the employer. Incorrect tax codes based on marital status, children, or canton of residence lead to under/over-withholding. Cantonal tax authorities audit and reclaim differences.
BVG Pension Fund Non-Enrollment
Risk Level: HIGH
Swiss law mandates enrollment in a BVG-compliant pension fund for all employees earning over CHF 22,680/year. Failing to enroll triggers enrollment in the Stiftung Auffangeinrichtung (default fund) with backdated contributions plus interest.
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Next topicOntop is the Global Workforce Engine for contractor teams: contracts, compliance documents and payments in 150+ countries.
150+
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$49
per contractor per month
1 run
to pay your whole team
USD
Global Account for every contractor
FAQ
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Ontop works with contractors, not employees. As Contractor of Record, Ontop handles contracts, compliance documents and payments for contractors in 150+ countries. To employ someone, you need a local entity or an employer of record. Ontop doesn't act as your employer of record.
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Employers pay contributions on top of gross salary. The cost table on this page shows the rates that apply here and a worked monthly example. A contractor with Ontop costs the agreed rate plus Ontop from $49 per contractor per month.
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Many countries require an extra month or an annual bonus for employees. The salaries section on this page shows the one that applies here and when it is usually paid. Contractors are paid what you agree in the contract.
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Employers withhold income tax and the employee's social security share every pay run, then pay them to the local authorities. The taxes section on this page lists the brackets, rates and filing deadlines that apply here.
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Yes. The contractor vs employee calculator compares the full cost of an employee, employer contributions included, with a contractor rate plus Ontop's monthly fee.
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When the work is project-based, you need to start fast or you don't have a local entity. If the person will work fixed hours, under your direction and only for you, local law may treat them as an employee, so hire them as one.
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Misclassifying employees as contractors, missing tax and social security deadlines, and ignoring collective agreements that set higher wage floors. The mistakes section on this page covers the ones that come up most often here.
Compare employer costs, taxes and contractor rules in nearby countries:
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.