Frequently Asked Questions
FAQ
Here you'll find the answers to your questions
People who live abroad but work in Switzerland are generally required to obtain health insurance in Switzerland. Exceptions may apply depending on the employee’s country of residence and nationality. You can find the exceptions here.
As a result of the United Kingdom’s withdrawal from the European Union (EU) and following the end of the agreed transition period on December 31, 2020, the Agreement on the Free Movement of Persons (AFMP) with the EU no longer applies to relations between Switzerland and the United Kingdom.
As of January 1, 2021, UK nationals will no longer be considered EU citizens but rather third-country nationals.
New Employees/Freelancers/Contractors Who Are UK Citizens as of January 1, 2021
Due to the priority given to Swiss nationals, applications for permits from UK citizens must now be processed in the same manner as those from third-country nationals. This means that individuals from Switzerland and EU/EFTA countries are given priority.
As a result, payroll+ cannot hire employees with UK citizenship who do not have a residence permit in Switzerland under the temporary staffing and payroll+Flex models.
Under the payroll+Smart model, the company itself can apply for a residence and work permit.
You can find more information on this topic on the State Secretariat’s website.
In Switzerland, there are various permits that are issued upon application. To help you get an overview, you can find a summary of all permits in Switzerland here.
Here you can see that every EU/EFTA citizen receives a permit in Switzerland, including job seekers.
Here you will find the addresses of all cantonal immigration offices.
Who is eligible for protection status S?
According to the Federal Council’s general ruling of March 11, 2022, the following persons are granted temporary protection in Switzerland:
1. Ukrainian nationals and their family members (spouses, minor children, close relatives who are financially dependent on them) who resided in Ukraine before February 24, 2022.
2. Persons of other nationalities or stateless persons who had international or national protection status in Ukraine.
3. Persons of other nationalities or stateless persons with a valid residence permit in Ukraine who cannot safely and permanently return to their home country.
What are the rules for people with S protection status?
You will be granted temporary protection in Switzerland, provided there are no legal grounds for exclusion (Art. 73 of the Asylum Act).
Is there a mandatory permit requirement for protection status S?
According to the notes on the permit, taking up gainful employment requires authorization under Art. 75 of the Asylum Act. The employer must report this to the competent Office of Migration. In doing so, the employer must confirm the details of the employment (wages, hours worked, etc.) as specified in the employment contract.
Based on the contractual agreements, we can offer our “Temporary Staffing” and “SME Payroll Package” models in this case. The “Freelancer Online Tool” model with the commission-based employment contract, however, is not suitable for this purpose. If you have any questions or other concerns, please contact us at info@payrollplus.ch.
Effective December 1, 2025, the current requirement for individuals with S protection status to obtain a work permit will be replaced by a simple reporting requirement. Starting October 23, 2025, employers and self-employed individuals will be able to report the start or end of employment via EasyGov.swiss or directly to the relevant cantonal authority. This change is intended to reduce administrative barriers and facilitate access to the labor market. https://www.news.admin.ch/de/newnsb/O1q31tESAJVk
If an employee is unable to perform work during the probationary period through no fault of his or her own, the employee is not entitled to wages under a permanent employment contract until the first day of the fourth month of the employment relationship; the employee must therefore bear the loss of wages during the three-month waiting period. The law does not provide for mandatory continued payment of wages in the event of illness during the first three months of a permanent employment relationship.
Related links:
- The 10 Most Important Questions About Probationary Periods: https://www.bdo.ch/de-ch/publikationen/fachartikel/nl/probezeit
- This must be specified in the employment contract: https://www.beobachter.ch/arbeit-bildung/arbeitsrecht/das-muss-im-arbeitsvertrag-geregelt-sein-596288#
- Entitlement to Wages During Sickness: https://www.ktipp.ch/artikel/artikeldetail/habe-ich-den-lohn-zugut
- Payment of Wages in the Event of Inability to Work – Swiss Code of Obligations (OR) Art. 324a: https://www.fedlex.admin.ch/eli/cc/27/317_321_377/de#a324a
According to Article 13, 60 hours may be paid if the employee agrees. (2,088 hours + 60 hours) = 2,148 net annual working hours
- 2,148 net annual working hours: 46.4 weeks = approximately 46.25 working hours per week
- See Article 13
How many extra hours can you work?
- In total, a maximum of 170 additional working hours per year may be worked. 110 working hours at a 25% premium. (2,088 + 170 hours) = 2,258 net annual working hours
- 2,258 net annual working hours: 46.4 weeks = approximately 48.5 working hours per week
- See “Overtime Requirements and Duration”
Calculation of Net Annual Working Hours:
365 days a year
– 104 52 Weekend Sat/Sun
– 20 vacation days
– 9 holidays
= 232 net workdays
x 9 hours = 2,088 net annual working hours.
We assume that a person works 46.44 weeks × 45 hours = 2,088 net annual working hours
(52 weeks – 4 weeks of vacation – 1.64 weeks of holidays = 46.4 weeks)
Overtime:
When the contractually specified normal working hours are exceeded up to the maximum weekly working hours (45 to 50 hours, depending on the industry), this is referred to as overtime.
Extra hours:
Extra hours refer to situations where the statutory maximum weekly working hours (45 to 50 hours, depending on the industry) are exceeded.
Labor Law:
The maximum weekly working hours are: 45 hours for employees in industrial establishments, as well as for office staff, technical staff, and other employees, including sales staff in large retail establishments; 50 hours for all other employees.
The maximum daily working time is 13 hours, provided that a rest period of 11 consecutive hours is observed.
Wage supplements under the Labor Law:
The employer must pay employees a wage premium of at least 25 percent for overtime work; this applies to office staff as well as technical and other employees, including sales staff in large retail establishments, but only for overtime exceeding 60 hours in a calendar year. (See Art. 12 ArG)
Therefore, under the payroll+ system, a maximum of 46.25 hours per week can be worked without overtime pay (52 weeks per year – 4 weeks of vacation = 48 weeks / 60 hours : 48 weeks = 1.25 hours per week, which can be worked without overtime pay).
Working hours and overtime are governed by Articles 9–13 of the Swiss Labor Act (ArG) or by the applicable collective bargaining agreement (CBA)
https://www.admin.ch/opc/de/classified-compilation/19640049/index.html#id-3
Night Work
Night work (from 11:00 p.m. to 6:00 a.m.) and Sunday work (from 11:00 p.m. on Saturday to 11:00 p.m. on Sunday) are generally prohibited.
Night work may be authorized if certain conditions are met. Permanent or regularly recurring night work is authorized by SECO, while temporary night work for up to 10 nights per calendar year is authorized by the cantonal authority. You can find the form for applying for a night work permit from the Canton of Schwyz at the following link.
In the case of temporary night work (fewer than 25 nights per calendar year), the employer must pay a wage supplement of at least 25 percent. In the case of permanent or regularly recurring night work, the employee is entitled to compensation equal to 10% of the time during which he or she performed night work. The compensatory time off must be granted within one year (see Art. 17b ArG; Art. 31 ArGV1). Employees who are paid by the hour also receive the 10% time allowance for regular night work in the form of paid time off. Art. 22 ArG prohibits the compensation of compensatory time off with monetary payments (link).
Special provisions apply to certain categories of employees and businesses, allowing night work without prior authorization (see Ordinance 2 to the Labor Act).
In general, an employee may not be required to work on Sundays or at night without his or her express consent.
Night work may be regulated on a case-by-case basis in a collective bargaining agreement.
For more information on Sunday and night work: https://www.ch.ch/de/sonntags-und-nachtarbeit/.
Yes, you can find the relevant information at:
Holidays Equivalent to Sundays
Swiss National Day (August 1) is the only federally regulated paid holiday. It is treated the same as Sundays, is a day off from work, and employers are required by law to pay employees their full wages for that day. The regulations governing Sunday work apply if employees are required to work on August 1.
In addition to August 1, the cantons may designate up to 8 of their public holidays as equivalent to Sundays (see the form “Public Holiday Regulations for the Canton of Schwyz”). As on Sundays, work is prohibited on these days. However, employers are not legally required to pay for these 8 public holidays. It may be contractually agreed that time off must be taken in advance or made up later. It is, however, common practice for employees on a monthly salary to have payment for these public holidays contractually agreed upon (see https://www.kmu-magazin.ch/recht/die-haeufigsten-arbeitsrechtlichen-fragen-rund-um-feiertage). Anyone who was sick on a public holiday is not entitled to compensatory time off. However, if a public holiday falls during vacation time, no vacation day needs to be used for it. Employees paid by the hour are also not entitled to pay for these days. However, payment is often contractually guaranteed for them as well. Either they are credited with a full workday, or 3.175% (for 8 public holidays in a 5-day workweek) is added to their hourly wage.
Work on holidays may be regulated on a case-by-case basis in a collective bargaining agreement (CBA).
If work is to be performed nonetheless, businesses subject to the Labor Act must obtain the appropriate authorization. This is subject to special provisions for certain groups of businesses or employees in accordance with Ordinance 2 to the Labor Act (ArGV2).
Ongoing or regularly recurring Sunday work is authorized provided it is indispensable for technical or economic reasons. Temporary Sunday work is authorized provided that an urgent need is demonstrated (Art. 19, paras. 2 and 3, ArG). Permanent or regularly recurring Sunday work is authorized by SECO; temporary Sunday work for up to 6 Sundays per calendar year is authorized by the cantonal authority (Art. 19, para. 4, ArG). The form for applying for authorization to work on Sundays and holidays in the canton of Schwyz can be found at the link below.
If an employee must work on a public holiday or Sunday, the employer must pay the employee a 50% premium. This premium must be paid in all cases of temporary Sunday work (Art. 19(3) ArG), both for employees paid a monthly salary and those paid an hourly wage. This also applies to so-called “executives” who cannot be considered employees in a higher managerial position (Art. 9 ArGV1). In the case of permanent or regularly recurring Sunday work, this premium is not owed, and it is assumed that Sunday work is already factored into the monthly or hourly wage.
In accordance with Art. 20 of the Labor Act (ArG) and Art. 21 of the Ordinance on Working Hours (ArGV1), compensatory rest is also provided for. Sunday work lasting up to 5 hours must be compensated for with time off within 4 weeks. If the work lasts longer than 5 hours, a compensatory rest day of at least 24 hours—falling on a workday—must be granted during the preceding or following week, immediately following the daily rest period, thereby providing a continuous rest period of 35 hours. In the case of Sunday work, an employee may not work more than 6 consecutive days.
In general, an employee may not be required to work on Sundays or at night without his or her express consent.
Special provisions apply to certain categories of employees and businesses, allowing them to work on Sundays without prior authorization (see Ordinance 2 to the Labor Act).
Sunday work may be regulated on a case-by-case basis in a collective bargaining agreement.
Holidays That Are Not Equivalent to Sundays
In addition to the 8 holidays mentioned above, cantons or municipalities may designate additional holidays as public days of rest in their laws governing days of rest; however, these are not considered equivalent to Sundays under the Labor Act, but are treated as workdays for the purposes of labor law. If these fall on workdays, they are considered normal workdays on which work may not be performed—if at all—due to cantonal or municipal regulations, and the municipal laws on days of rest apply (Art. 71(c) ArG). The cantons may also regulate their public holidays differently depending on the specific region within the canton.
According to Art. 11 of the Labor Act (ArG), for holidays that are not treated as Sundays and that fall on a normal workday, it may be contractually agreed that the time off must be taken in advance or made up later, or that it is unpaid.
Please refer to SECO’s guidance on Art. 20a of the Labor Act.
Since the regulation of holidays not equivalent to Sundays is left to the cantons or municipalities, it is essential to consult the relevant legal provisions of the canton in question. The following information therefore applies only to the canton of Schwyz. Public holidays not considered equivalent to Sundays (the cantonal public holidays as listed in the “Public Holiday Regulations for the Canton of Schwyz” form) are governed by the Canton of Schwyz’s Rest Day Act. Businesses must remain closed on these holidays. If work is to be performed on these days nonetheless, authorization from the Office of Labor (Labor Inspectorate) is required. The form for applying for authorization to work on Sundays and holidays in the Canton of Schwyz can be found at the link below.
If work is performed subject to authorization, the working hours must be compensated on a one-to-one basis. A 50% wage premium does not have to be paid.
If work is to be performed on the patron saint’s feast day—that is, on traditional municipal holidays (work only, no sales)—municipal approval is required. If work subject to approval is performed, the working hours must be compensated on a one-to-one basis. A 50% wage premium does not have to be paid.
Here are two real-world examples:
- A plastering company from the canton of Zurich is sending one of its plasterers to Lachen in the canton of Schwyz on August 15 (Assumption Day) to perform plastering work on a house there. Is this permissible?
Answer: This is not permitted. The work is performed in the canton of Schwyz. The Assumption of Mary is a public holiday in the canton of Schwyz on which work is not permitted (see § 3 of the Canton of Schwyz’s Rest Day Act). The origin or location of the employer (the business) is irrelevant. The decisive factor is where the work is performed.
- A drywall contractor from the canton of Schwyz is sending one of its drywall installers to Zurich on August 15 (the Feast of the Assumption) to perform drywall work in a house there. Is this permitted?
Answer: This is permitted, but the employee must consent, as the employer must respect the employee’s freedom of religion. The working hours must be compensated on a one-to-one basis; a 50% premium does not have to be paid. Here, too, the decisive factor is where the work is performed. In the canton of Zurich, the Assumption of Mary is not a public holiday.
At payroll+, the probationary period is 3 months, as specified in the framework agreement. If a different probationary period is desired, this can be discussed and agreed upon individually with payroll+.
This will be noted in the individual employment contract and supersedes the standard 3-month term specified in the framework employment contract.
25% wage supplement
This payment is due if the overtime work is not offset by time off and nothing else has been agreed upon in writing or specified in a standard employment contract or collective bargaining agreement (see Art. 321c, para. 3). If no provisions have been made, the basic principle of payment, including a 25% wage premium, applies. Overtime refers to hours worked beyond the contractually agreed working hours.
Overtime pay and maximum working hours for the applicable collective bargaining agreements (CBAs) can be found in the respective CBA (www.tempdata.ch).
A wage premium of at least 25% is also payable if the statutory maximum weekly working hours, as specified in Art. 13(1) of the Labor Act (ArG), are exceeded. Hours worked in excess of the maximum working hours constitute overtime. If overtime is compensated, with the consent of the individual employee, within a reasonable period of time by time off of equal duration, no premium is payable (Art. 13(2) ArG).
However, office staff, as well as technical and other employees—including sales personnel in large retail establishments—are only entitled to a wage premium of at least 25% for overtime work exceeding 60 hours in a calendar year (Art. 13(1) ArG).
Therefore, under the payroll+ system, a maximum of 46.25 hours per week can be worked without overtime pay (52 weeks per year – 4 weeks of vacation = 48 weeks / 60 hours ÷ 48 weeks = 1.25 hours per week, which can be worked without overtime pay).
Working hours and overtime are governed by Articles 9–13 of the Swiss Labor Act (ArG)
https://www.admin.ch/opc/de/classified-compilation/19640049/index.html#id-3
In the case of temporary night work (fewer than 25 nights per calendar year), the employer must pay a wage premium of at least 25%. In the case of permanent or regularly recurring night work, the employee is entitled to compensation equal to 10% of the time during which they performed night work. The compensatory time off must be granted within one year (see Art. 17b ArG; Art. 31 ArGV1). Employees who are paid by the hour also receive the 10% time premium for regular night work in the form of paid time off. Art. 22 ArG prohibits the compensation of compensatory rest time with monetary payments (Link)
50% wage supplement
If an employee is required to work on a public holiday or Sunday, the employer must pay the employee a 50% premium. This premium must be paid in all cases of temporary Sunday work (Art. 19(3) ArG), both to employees paid a monthly salary and to those paid an hourly wage. This also applies to so-called “executives” who cannot be considered employees in a higher managerial position (Art. 9 ArGV1). In the case of permanent or regularly recurring Sunday work, this premium is not due, and it is assumed that Sunday work is already factored into the monthly or hourly wage.
In accordance with Art. 20 of the Labor Act (ArG) and Art. 21 of the Ordinance on Working Hours (ArGV1), compensatory rest is also provided for. Sunday work lasting up to 5 hours must be compensated for with time off within 4 weeks. If the work lasts longer than 5 hours, a compensatory rest day of at least 24 hours—falling on a workday—must be granted during the preceding or following week, immediately following the daily rest period, thereby providing a continuous rest period of 35 hours. In the case of Sunday work, an employee may not work more than 6 consecutive days.
In general, an employee may not be required to work on Sundays or at night without his or her express consent.
Special provisions apply to certain categories of employees and businesses, allowing them to work on Sundays without prior authorization (see Ordinance 2 to the Labor Act).
Sunday work may be regulated on a case-by-case basis in a collective bargaining agreement.
If your company is not subject to a collective bargaining agreement (CBA), the Labor Act applies to the authorization of Sunday work and night work. For more information, see the FAQ (Sunday/Night Work).
Pursuant to Art. 335c, para. 1, of the Swiss Code of Obligations (OR), the employment relationship may be terminated after the probationary period has expired during the first year of service with one month’s notice; during the second through ninth years of service, with a notice period of 2 months; and thereafter, with a notice period of 3 months, in each case effective at the end of a month.
These notice periods may be modified by written agreement, a standard employment contract, or a collective bargaining agreement; however, they may be reduced to less than one month only by a collective bargaining agreement and only for the first year of employment (Art. 335c, para. 2, OR).
Under the law, notice of termination takes effect at the end of a month. However, this may be modified by contractual agreement, and any day may be designated as the effective date of termination, provided that the notice period is observed.
See the following link: https://www.seco.admin.ch/seco/de/home/Arbeit/Personenfreizugigkeit_Arbeitsbeziehungen/Arbeitsrecht/FAQ_zum_privaten_Arbeitsrecht/kuendigung.html (under the question “What notice periods does the law provide for?”).
One more special note:
If a notice of termination is served during the first year of employment, the one-month notice period applies, even if the notice period does not expire until the second year of employment.
Notice periods may vary depending on the employment model.
Temporary Staffing:
- From the 1st to the 3rd month, 2 days
- From the 4th to the 6th month, 7 days
- Starting in the 7th month, 1 month from the same day of the following month
Since this is a relatively mandatory provision, these time limits must not be shortened; however, they may be modified on a case-by-case basis in the employment contract in favor of the employee.
Freelancer Contract OR:
This section sets forth the notice periods between the client company and the employee as specified in the contract for services.
Under the commission-based employment contract, the following notice period applies between payroll+ and the employee:
In principle, the employee has the right to terminate the contract immediately at any time without providing a reason. However, agreements with the client must be strictly adhered to. In doing so, the employee must take into account the following information regarding registration with the RAV.
The notice periods are:
- 2 workdays during the three-month probationary period (shortened in accordance with Art. 335b, para. 2, of the Swiss Code of Obligations)
- 30 days after the probationary period (notice of termination may also be given at any time during the month, not just at the end of the month)
To protect the employee, the law requires, pursuant to Art. 335c, paras. 1 and 2 of the Swiss Code of Obligations (OR), that the one-month notice period be observed. Employees are urged to keep an eye on notice periods. As soon as it becomes apparent that no more assignments can be carried out, the employee must notify us so that payroll+ or the employee can terminate the employment contract due to the end of the assignment. The employee should also inform the client of this so that the client can provide advance notice if they no longer have work. Furthermore, the employee must note that, in the event of registration with the RAV, the employee is required to claim wages for the notice period from the employer. Since the employee may no longer receive any payments during this period, payroll+ will not be able to pay out the 97%. This pay stub showing CHF 0.00 will then be included in the calculation of total earnings.
payroll+ Flex:
The contract is concluded as a service agreement in accordance with Article 394 of the Swiss Code of Obligations and may be terminated at any time.
payroll+ SME Payroll Package:
The notice periods agreed upon between the employer and the employee apply here.
Notice periods may not be shorter than those specified in the Swiss Code of Obligations (OR) or the applicable collective bargaining agreement (CBA) for the company.
If the employee becomes ill for an extended period during the probationary period, payroll+ may terminate the employment relationship at any time in accordance with Art. 335b(1) of the Swiss Code of Obligations (OR). Termination for cause pursuant to Art. 336c(1)(b) of the Swiss Code of Obligations (OR) does not take effect until the employee has successfully completed the probationary period. This termination is not intended as harassment but is based on pragmatic grounds. Each time a sick leave claim is filed with the daily sickness benefit insurance provider and benefits are paid out, it results in a charge against the policy. Once the number of claims reaches a certain threshold, the daily sickness benefit insurer will increase premiums accordingly, as this represents a higher risk for them. payroll+’s business model is vulnerable to a higher rate of sick leave claims, as it involves a triangular employment relationship. To prevent the premiums for the group daily sickness benefit insurance from rising to exorbitant levels–which also benefits the other employees–and to protect against fraud, payroll+ AG has no choice but to terminate the employment relationship in such cases.
If the employee resigned voluntarily, these waiting periods do not apply.
After recovery, the employment relationship can be resumed following mutual agreement and the signing of a new contract with payroll+.
Cross-border workers are insured in their country of residence in the event of unemployment. In the event of reduced working hours, weather-related work stoppages, or the employer’s insolvency, the country of employment is responsible.
If you are a cross-border worker employed in Switzerland and lose your job, contact the employment office in your place of residence to apply for unemployment benefits. In Switzerland, you are not entitled to unemployment insurance benefits.
To prove your Swiss contribution periods in your country of residence, you will need Form PD U1. You can request this form from an unemployment insurance fund.
As a first step, please have your most recent Swiss employer(s) fill out the “International Employer Certificate” form and return it to you.
If an employee is unable to perform work during the probationary period through no fault of his or her own, the employee is not entitled to wages under a permanent employment contract until the first day of the fourth month of the employment relationship; the employee must therefore bear the loss of wages during the three-month waiting period. The law does not provide for mandatory continued payment of wages in the event of illness during the first three months of a permanent employment relationship.
Related links:
- The 10 Most Important Questions About Probationary Periods: https://www.bdo.ch/de-ch/publikationen/fachartikel/nl/probezeit
- This must be specified in the employment contract: https://www.beobachter.ch/arbeit-bildung/arbeitsrecht/das-muss-im-arbeitsvertrag-geregelt-sein-596288#
- Entitlement to Wages During Sickness: https://www.ktipp.ch/artikel/artikeldetail/habe-ich-den-lohn-zugut
- Payment of Wages in the Event of Inability to Work – Swiss Code of Obligations (OR) Art. 324a: https://www.fedlex.admin.ch/eli/cc/27/317_321_377/de#a324a
According to Article 13, 60 hours may be paid if the employee agrees. (2,088 hours + 60 hours) = 2,148 net annual working hours
- 2,148 net annual working hours: 46.4 weeks = approximately 46.25 working hours per week
- See Article 13
How many extra hours can you work?
- In total, a maximum of 170 additional working hours per year may be worked. 110 working hours at a 25% premium. (2,088 + 170 hours) = 2,258 net annual working hours
- 2,258 net annual working hours: 46.4 weeks = approximately 48.5 working hours per week
- See “Overtime Requirements and Duration”
Calculation of Net Annual Working Hours:
365 days a year
– 104 52 Weekend Sat/Sun
– 20 vacation days
– 9 holidays
= 232 net workdays
x 9 hours = 2,088 net annual working hours.
We assume that a person works 46.44 weeks × 45 hours = 2,088 net annual working hours
(52 weeks – 4 weeks of vacation – 1.64 weeks of holidays = 46.4 weeks)
Overtime:
When the contractually specified normal working hours are exceeded up to the maximum weekly working hours (45 to 50 hours, depending on the industry), this is referred to as overtime.
Extra hours:
Extra hours refer to situations where the statutory maximum weekly working hours (45 to 50 hours, depending on the industry) are exceeded.
Labor Law:
The maximum weekly working hours are: 45 hours for employees in industrial establishments, as well as for office staff, technical staff, and other employees, including sales staff in large retail establishments; 50 hours for all other employees.
The maximum daily working time is 13 hours, provided that a rest period of 11 consecutive hours is observed.
Wage supplements under the Labor Law:
The employer must pay employees a wage premium of at least 25 percent for overtime work; this applies to office staff as well as technical and other employees, including sales staff in large retail establishments, but only for overtime exceeding 60 hours in a calendar year. (See Art. 12 ArG)
Therefore, under the payroll+ system, a maximum of 46.25 hours per week can be worked without overtime pay (52 weeks per year – 4 weeks of vacation = 48 weeks / 60 hours : 48 weeks = 1.25 hours per week, which can be worked without overtime pay).
Working hours and overtime are governed by Articles 9–13 of the Swiss Labor Act (ArG) or by the applicable collective bargaining agreement (CBA)
https://www.admin.ch/opc/de/classified-compilation/19640049/index.html#id-3
Night Work
Night work (from 11:00 p.m. to 6:00 a.m.) and Sunday work (from 11:00 p.m. on Saturday to 11:00 p.m. on Sunday) are generally prohibited.
Night work may be authorized if certain conditions are met. Permanent or regularly recurring night work is authorized by SECO, while temporary night work for up to 10 nights per calendar year is authorized by the cantonal authority. You can find the form for applying for a night work permit from the Canton of Schwyz at the following link.
In the case of temporary night work (fewer than 25 nights per calendar year), the employer must pay a wage supplement of at least 25 percent. In the case of permanent or regularly recurring night work, the employee is entitled to compensation equal to 10% of the time during which he or she performed night work. The compensatory time off must be granted within one year (see Art. 17b ArG; Art. 31 ArGV1). Employees who are paid by the hour also receive the 10% time allowance for regular night work in the form of paid time off. Art. 22 ArG prohibits the compensation of compensatory time off with monetary payments (link).
Special provisions apply to certain categories of employees and businesses, allowing night work without prior authorization (see Ordinance 2 to the Labor Act).
In general, an employee may not be required to work on Sundays or at night without his or her express consent.
Night work may be regulated on a case-by-case basis in a collective bargaining agreement.
For more information on Sunday and night work: https://www.ch.ch/de/sonntags-und-nachtarbeit/.
Yes, you can find the relevant information at:
Holidays Equivalent to Sundays
Swiss National Day (August 1) is the only federally regulated paid holiday. It is treated the same as Sundays, is a day off from work, and employers are required by law to pay employees their full wages for that day. The regulations governing Sunday work apply if employees are required to work on August 1.
In addition to August 1, the cantons may designate up to 8 of their public holidays as equivalent to Sundays (see the form “Public Holiday Regulations for the Canton of Schwyz”). As on Sundays, work is prohibited on these days. However, employers are not legally required to pay for these 8 public holidays. It may be contractually agreed that time off must be taken in advance or made up later. It is, however, common practice for employees on a monthly salary to have payment for these public holidays contractually agreed upon (see https://www.kmu-magazin.ch/recht/die-haeufigsten-arbeitsrechtlichen-fragen-rund-um-feiertage). Anyone who was sick on a public holiday is not entitled to compensatory time off. However, if a public holiday falls during vacation time, no vacation day needs to be used for it. Employees paid by the hour are also not entitled to pay for these days. However, payment is often contractually guaranteed for them as well. Either they are credited with a full workday, or 3.175% (for 8 public holidays in a 5-day workweek) is added to their hourly wage.
Work on holidays may be regulated on a case-by-case basis in a collective bargaining agreement (CBA).
If work is to be performed nonetheless, businesses subject to the Labor Act must obtain the appropriate authorization. This is subject to special provisions for certain groups of businesses or employees in accordance with Ordinance 2 to the Labor Act (ArGV2).
Ongoing or regularly recurring Sunday work is authorized provided it is indispensable for technical or economic reasons. Temporary Sunday work is authorized provided that an urgent need is demonstrated (Art. 19, paras. 2 and 3, ArG). Permanent or regularly recurring Sunday work is authorized by SECO; temporary Sunday work for up to 6 Sundays per calendar year is authorized by the cantonal authority (Art. 19, para. 4, ArG). The form for applying for authorization to work on Sundays and holidays in the canton of Schwyz can be found at the link below.
If an employee must work on a public holiday or Sunday, the employer must pay the employee a 50% premium. This premium must be paid in all cases of temporary Sunday work (Art. 19(3) ArG), both for employees paid a monthly salary and those paid an hourly wage. This also applies to so-called “executives” who cannot be considered employees in a higher managerial position (Art. 9 ArGV1). In the case of permanent or regularly recurring Sunday work, this premium is not owed, and it is assumed that Sunday work is already factored into the monthly or hourly wage.
In accordance with Art. 20 of the Labor Act (ArG) and Art. 21 of the Ordinance on Working Hours (ArGV1), compensatory rest is also provided for. Sunday work lasting up to 5 hours must be compensated for with time off within 4 weeks. If the work lasts longer than 5 hours, a compensatory rest day of at least 24 hours—falling on a workday—must be granted during the preceding or following week, immediately following the daily rest period, thereby providing a continuous rest period of 35 hours. In the case of Sunday work, an employee may not work more than 6 consecutive days.
In general, an employee may not be required to work on Sundays or at night without his or her express consent.
Special provisions apply to certain categories of employees and businesses, allowing them to work on Sundays without prior authorization (see Ordinance 2 to the Labor Act).
Sunday work may be regulated on a case-by-case basis in a collective bargaining agreement.
Holidays That Are Not Equivalent to Sundays
In addition to the 8 holidays mentioned above, cantons or municipalities may designate additional holidays as public days of rest in their laws governing days of rest; however, these are not considered equivalent to Sundays under the Labor Act, but are treated as workdays for the purposes of labor law. If these fall on workdays, they are considered normal workdays on which work may not be performed—if at all—due to cantonal or municipal regulations, and the municipal laws on days of rest apply (Art. 71(c) ArG). The cantons may also regulate their public holidays differently depending on the specific region within the canton.
According to Art. 11 of the Labor Act (ArG), for holidays that are not treated as Sundays and that fall on a normal workday, it may be contractually agreed that the time off must be taken in advance or made up later, or that it is unpaid.
Please refer to SECO’s guidance on Art. 20a of the Labor Act.
Since the regulation of holidays not equivalent to Sundays is left to the cantons or municipalities, it is essential to consult the relevant legal provisions of the canton in question. The following information therefore applies only to the canton of Schwyz. Public holidays not considered equivalent to Sundays (the cantonal public holidays as listed in the “Public Holiday Regulations for the Canton of Schwyz” form) are governed by the Canton of Schwyz’s Rest Day Act. Businesses must remain closed on these holidays. If work is to be performed on these days nonetheless, authorization from the Office of Labor (Labor Inspectorate) is required. The form for applying for authorization to work on Sundays and holidays in the Canton of Schwyz can be found at the link below.
If work is performed subject to authorization, the working hours must be compensated on a one-to-one basis. A 50% wage premium does not have to be paid.
If work is to be performed on the patron saint’s feast day—that is, on traditional municipal holidays (work only, no sales)—municipal approval is required. If work subject to approval is performed, the working hours must be compensated on a one-to-one basis. A 50% wage premium does not have to be paid.
Here are two real-world examples:
- A plastering company from the canton of Zurich is sending one of its plasterers to Lachen in the canton of Schwyz on August 15 (Assumption Day) to perform plastering work on a house there. Is this permissible?
Answer: This is not permitted. The work is performed in the canton of Schwyz. The Assumption of Mary is a public holiday in the canton of Schwyz on which work is not permitted (see § 3 of the Canton of Schwyz’s Rest Day Act). The origin or location of the employer (the business) is irrelevant. The decisive factor is where the work is performed.
- A drywall contractor from the canton of Schwyz is sending one of its drywall installers to Zurich on August 15 (the Feast of the Assumption) to perform drywall work in a house there. Is this permitted?
Answer: This is permitted, but the employee must consent, as the employer must respect the employee’s freedom of religion. The working hours must be compensated on a one-to-one basis; a 50% premium does not have to be paid. Here, too, the decisive factor is where the work is performed. In the canton of Zurich, the Assumption of Mary is not a public holiday.
At payroll+, the probationary period is 3 months, as specified in the framework agreement. If a different probationary period is desired, this can be discussed and agreed upon individually with payroll+.
This will be noted in the individual employment contract and supersedes the standard 3-month term specified in the framework employment contract.
25% wage supplement
This payment is due if the overtime work is not offset by time off and nothing else has been agreed upon in writing or specified in a standard employment contract or collective bargaining agreement (see Art. 321c, para. 3). If no provisions have been made, the basic principle of payment, including a 25% wage premium, applies. Overtime refers to hours worked beyond the contractually agreed working hours.
Overtime pay and maximum working hours for the applicable collective bargaining agreements (CBAs) can be found in the respective CBA (www.tempdata.ch).
A wage premium of at least 25% is also payable if the statutory maximum weekly working hours, as specified in Art. 13(1) of the Labor Act (ArG), are exceeded. Hours worked in excess of the maximum working hours constitute overtime. If overtime is compensated, with the consent of the individual employee, within a reasonable period of time by time off of equal duration, no premium is payable (Art. 13(2) ArG).
However, office staff, as well as technical and other employees—including sales personnel in large retail establishments—are only entitled to a wage premium of at least 25% for overtime work exceeding 60 hours in a calendar year (Art. 13(1) ArG).
Therefore, under the payroll+ system, a maximum of 46.25 hours per week can be worked without overtime pay (52 weeks per year – 4 weeks of vacation = 48 weeks / 60 hours ÷ 48 weeks = 1.25 hours per week, which can be worked without overtime pay).
Working hours and overtime are governed by Articles 9–13 of the Swiss Labor Act (ArG)
https://www.admin.ch/opc/de/classified-compilation/19640049/index.html#id-3
In the case of temporary night work (fewer than 25 nights per calendar year), the employer must pay a wage premium of at least 25%. In the case of permanent or regularly recurring night work, the employee is entitled to compensation equal to 10% of the time during which they performed night work. The compensatory time off must be granted within one year (see Art. 17b ArG; Art. 31 ArGV1). Employees who are paid by the hour also receive the 10% time premium for regular night work in the form of paid time off. Art. 22 ArG prohibits the compensation of compensatory rest time with monetary payments (Link)
50% wage supplement
If an employee is required to work on a public holiday or Sunday, the employer must pay the employee a 50% premium. This premium must be paid in all cases of temporary Sunday work (Art. 19(3) ArG), both to employees paid a monthly salary and to those paid an hourly wage. This also applies to so-called “executives” who cannot be considered employees in a higher managerial position (Art. 9 ArGV1). In the case of permanent or regularly recurring Sunday work, this premium is not due, and it is assumed that Sunday work is already factored into the monthly or hourly wage.
In accordance with Art. 20 of the Labor Act (ArG) and Art. 21 of the Ordinance on Working Hours (ArGV1), compensatory rest is also provided for. Sunday work lasting up to 5 hours must be compensated for with time off within 4 weeks. If the work lasts longer than 5 hours, a compensatory rest day of at least 24 hours—falling on a workday—must be granted during the preceding or following week, immediately following the daily rest period, thereby providing a continuous rest period of 35 hours. In the case of Sunday work, an employee may not work more than 6 consecutive days.
In general, an employee may not be required to work on Sundays or at night without his or her express consent.
Special provisions apply to certain categories of employees and businesses, allowing them to work on Sundays without prior authorization (see Ordinance 2 to the Labor Act).
Sunday work may be regulated on a case-by-case basis in a collective bargaining agreement.
If your company is not subject to a collective bargaining agreement (CBA), the Labor Act applies to the authorization of Sunday work and night work. For more information, see the FAQ (Sunday/Night Work).
Yes, provided you comply with the maximum weekly/monthly working hours.
The maximum weekly working hours without a collective bargaining agreement (CBA) are 46.25 hours.
If your occupation is covered by a generally binding collective bargaining agreement (CBA), then the maximum working hours specified in that CBA apply.
Yes, the invoice can be issued abroad in various currencies.
payroll+ must verify in advance whether invoices to foreign countries can be issued excluding VAT. Please contact a payroll+ consultant to verify whether invoicing without VAT is possible.
All wages are paid in Swiss francs (CHF), as social security contributions in Switzerland must be paid in CHF.
Foreign currency is converted at the exchange rate in effect on the day the funds are received by the bank. payroll+ has no influence on the exchange rate.
You can contact us at any time with questions about billing.
Employment Reference
payroll+ is happy to issue a job reference for the employee’s assignment. However, this can only be issued correctly if the host company provides the necessary information. The employee was not assigned to payroll+. We are therefore unable to comment on the employee’s personal details, job duties, or performance.
The host company may issue a job reference itself or provide us with the text or description for it.
Proof of Employment
We can issue a certificate of employment at any time upon request. It includes the period of employment, the job title, and the company where the work was performed.
payroll+ does not create or correct employment references. However, our partner—who specializes exclusively in employment references—can create or correct them for you easily and affordably:
We provide detailed instructions for all key functions, explaining the entire process step by step.
The following guides are available to you:
- Customers / Entering Invoices: Here you’ll learn how to create customers and enter invoices correctly.
- Time Reports / Expense Reports: Here’s how to easily and completely enter time reports and expense reports.
These instructions will help you use the Freelancer online tool quickly and efficiently. If you still have questions, we’ll be happy to assist you. You can reach us at +41 55 416 50 50 or by email at team@payrollplus.ch.
Pay Grades
3% – up to CHF 200,000 in total annual payroll costs
2% – for total annual labor costs of CHF 200,000 or more
1% – upon request
The total annual labor costs are based on each individual employee or freelancer. Please review our cost tiers and their respective specifications here.
Total annual payroll costs for companies can only be aggregated if monthly wages exceed CHF 4,000 per employee. Otherwise, each employee is charged at a rate of 3%, and upon consultation, a flat-rate fee may be charged for certain manual tasks (including permits, withholding tax, child allowances, wage garnishments, etc.).
In the Freelancer model (Freelancer Online Tool), the following rule applies: If the total invoice amount divided by the number of hours worked results in an hourly rate of CHF 50 to CHF 99, the payroll+ fee is 5%.
A move to a lower pay grade will not be considered until the corresponding total wage costs have been reached and a request to that effect has been submitted.
Maternity Benefits
Working mothers are eligible to receive maternity benefits for the first 14 weeks following the birth of their child. To qualify, the mother must have been insured under the AHV/IV/EO system in Switzerland during the nine months prior to the birth. In addition, she must have been employed for at least five months during those nine months. At the time of the birth, the mother must be employed or, if self-employed, registered with a compensation fund. If the mother returns to work within 14 weeks of the birth, she is no longer entitled to the allowance for the remainder of the period.
Maternity benefits are paid as a daily allowance and amount to 80% of the average earned income prior to childbirth, up to a maximum of 196 francs per day.
You must apply for maternity benefits using the official form that we will send you and submit it to the compensation fund with which your contributions were last processed.
Income Replacement Scheme
Persons residing in Switzerland or abroad are entitled to compensation for loss of earnings (EO),
- who serve in the Swiss Armed Forces, the Women’s Military Service, and the Red Cross Service;
- perform community service;
- serve in civil defense;
- participate in federal or cantonal Youth and Sports leadership courses;
- participate in youth shooting instructor courses.
For each period of service, service members receive a reporting card from the accounting officers or the implementing agency detailing the days of service they have completed, and they forward these cards, fully completed, to payroll+.
We will certify your pre-service salary on the EO application form and forward it immediately to your compensation office. This ensures that your EO benefits are paid out as quickly as possible.
Eligibility
Anyone can participate in the payroll+ “Bring a Friend” program, even those who are not payroll+ customers.
What do you get when you make a referral?
payroll+ will pay a one-time bonus of CHF 500 as soon as payroll+ generates at least CHF 1,500 in margin from the referral.
Freelancer
Example: Martin Muster recommends payroll+ to a friend, and that friend then uses payroll+ to process her payments as a freelancer. As soon as the friend has generated CHF 1,500 in margin for payroll+, Martin Muster receives a one-time payment of CHF 500 for his referral.
SMEs & Startups
Example: Martin Muster refers “Mehrwert AG” to payroll+, and the company then processes its payroll through payroll+ as an SME. As soon as “Mehrwert AG” has generated a CHF 1,500 margin for payroll+, Martin Muster receives a one-time payment of CHF 500 for his referral.
No payment will be made in the following cases:
- If payroll+ receives a referral for a potential customer who had already been in contact with payroll+ prior to the referral (verifiably within the last 6 months), that contact is not considered new, and there is no entitlement to the CHF 500 payment. payroll+ can verify the contact via a CRM entry.
- If the recommendation from payroll+ does not generate a commission, there is no entitlement to the CHF 500.- payment.
- payroll+ does not generate a margin in the following cases:
- Employees are not working (no wages are being generated, and therefore no profit margin either)
- An employee is sick/had an accident
- The employee is on vacation
- Employee is on military/maternity leave
- Employee takes legally mandated leave
- Cantonal Holidays
- Company Holidays
Payment of the “Bring a Friend” Bonus
payroll+ does not make premium payments until the threshold of CHF 1,500 has been reached.
All payments that payroll+ makes for referrals are paid as wages. All required social security deductions and insurance premiums (employer and employee contributions) are deducted from the payment amount.
Direct payments (other than wages) are only possible for companies (AG/GmbH).
Become payroll+ Champions
If you refer 10 people who receive a salary from payroll+, you are eligible for an extra payment of CHF 2,000.
For employees who are temporarily working in another country on an assignment on behalf of their employer, the social security laws of their home country continue to apply during this period, provided certain conditions are met (known as “posting,” as confirmed by Form A1).
A secondment requires the following:
- During the assignment, the employee has an employment contract with the employer in Switzerland
- There must be a verifiable direct employment relationship between the sending employer and its employee throughout the entire duration of the posting. The employee remains under the authority of the sending employer.
- The employee must have been insured in Switzerland for at least one month immediately prior to their assignment abroad, either based on their residence or because they were engaged in gainful employment there.
- The person to be seconded does not replace a person who has already been seconded
- During the posting, the authority to terminate the employment contract remains exclusively with the employer in Switzerland
- An employer in Switzerland may determine the general nature of the work at the assignment location
- The person to be posted is expected to continue working for the employer in Switzerland after the posting;
- Social security contributions are collected by the employer in Switzerland and settled with the appropriate compensation office
- The person to be posted must have a licensed health insurer or have been exempted from the requirement for mandatory health insurance by the competent cantonal authority.
The posting is certified using Form A1. This document confirms that the holder is required to pay social security contributions only in the country that issued Form A1.
The employee must first fill out the A1 Posting Form (German / English); payroll+ will officially report the posting once the above requirements are met.
In practice, the question of whether an A1 form must be requested for business trips can be answered in the negative, even though the law does not specify a minimum time limit (see attached .pdf “The 10 Most Frequently Asked Questions About Form A1,” point 6. The current exceptions are France and Austria, which may impose penalties for failing to provide Form A1).
It should be noted that any double payment of social security contributions is the responsibility of the employee. Likewise, the employee is required to comply with the legal provisions of the host country; this applies in particular to the host country’s regulations regarding permits, residency, and labor law.
Posting from Switzerland to an EU Country
Certificate of Assignment
For initial postings lasting up to a maximum of 24 months, the employer or self-employed person must submit an application to the relevant AHV compensation fund to have a posting certificate issued. If the requirements for a posting are met, the AHV compensation office issues an A1 certificate and provides it to the employer or the self-employed individual. The employer then gives the certificate to the posted worker.
Extension of the Assignment
If, contrary to expectations, the 24-month period proves insufficient, an application for a long-term posting or an extension of the posting (exemption agreement) may be submitted to the Federal Social Insurance Office in the employee’s interest. The Federal Social Insurance Office will attempt to reach an exemption agreement with the competent foreign authority in accordance with Article 16 of Regulation (EC) No. 883/04. If the agreement is reached, the employer will receive confirmation that Swiss legislation will continue to apply. The extension must be requested before the initial 24-month posting period expires. The same procedure applies to self-employed individuals.
According to international practice, an extension is requested from the authorities of the other country only if the total duration of the assignment does not exceed five to six years.
If, at the start of the assignment, it is already apparent that the 24-month period will not be sufficient to complete the tasks, an application for an extended assignment (exemption agreement) may be filed directly with the Federal Social Insurance Office in the employee’s best interest.
For information on posting employees from Switzerland to an EFTA country or a signatory state, see the fact sheets here.
Regarding social security for employees on assignment:
During the term of the assignment, the general rule is that the legal provisions of the employer’s country apply (the so-called “place of employment principle” or “principle of coverage”). This means that employees are generally covered by the social security system of the country where they work. However, the aforementioned regulation provides for a special provision for posted workers that allows them to remain insured in their home country during a temporary posting, provided that the expected duration of this work does not exceed 24 months and the person is not replacing another posted worker.
Pursuant to Regulation (EEC) No. 1408/71 of the Council dated June 14, 1971, Article 14 stipulates that a person posted to another country remains subject to the social security system of their country of origin for the duration of the assignment, up to a maximum of 12 months. To confirm that the posted worker remains subject to the social security legislation of the country of origin, a corresponding posting certificate (see A1) is required. If, for unforeseeable reasons, the originally planned duration is exceeded—beyond twelve months— the legislation of the first country shall continue to apply until the completion of this work, provided that the competent authority of the country to whose territory the person was posted, or the body designated by that authority, grants its approval; this approval must be requested before the end of the first twelve months. It may not be granted for a period longer than twelve months.
A1 Certificate
With the A1 certificate, an employee can prove that he or she is covered by social security through his or her home country while on a business trip to another European country. This means they do not have to pay double social security contributions. payroll+ can submit the A1 form to the AHV branch office for a posting within the EU, provided the employee has been on payroll through payroll+ for at least one month.
Examples:
Switzerland – Posting to EU member states – max. 24 months; extension to a maximum of 6 years subject to a special agreement between the two countries
Switzerland – Posting to EFTA countries – max. 24 months; extension to a maximum of 6 years subject to a special agreement between the two countries
Switzerland – Posting to contracting states – max. 12–60 months, depending on the agreement between the two countries. Extension to a maximum of 6 years subject to a special agreement between the two countries
Switzerland – Posting to Other Countries – Under the principle of territoriality, every person is generally subject to the laws of the country in which they are residing. Individuals—regardless of their nationality—who work abroad for a Swiss employer and are paid by that employer may, with the employer’s consent, continue their coverage under the AHV/IV/EO and unemployment insurance if they were insured for at least five consecutive years immediately prior to taking up employment abroad.
Employees who are working under the interim income program always receive their interim income certificate (ZV) for the unemployment insurance fund by the 5th of the following month. To prevent fraud, we cannot issue interim income certificates during the current month; you must wait until the end of the month!
Note for online tool users: Invoices from customers created via the online tool must be paid in full before we can issue an interim earnings statement. For each invoice sent, only working hours for a single month may be reported; time tracking that spans multiple months is not permitted in the interim earnings report.
If you have agreed with your client to use a foreign currency, we may not issue you the interim earnings statement until we have paid your wages. We cannot assume the currency risk, and your wages will be adjusted according to the current exchange rate.
If you are working under the interim earnings program, we recommend that you agree to be paid in CHF. This way, you will always receive the required certificate at the beginning of the following month.
The following note appears on the interim earnings form:
As a payroll company, we report the hours worked and wages reported by the insured person. If, at the employee’s request, actual payment is made only after receipt of the corresponding payments from the client, the insured person may not assert any legal claims against the issuer of this certificate (payroll+ AG) based on the self-reported hours worked or wages.
As of today, the insured person has reported to us all hours worked during the previous month. If hours are subsequently reported for months that have already been processed, the insured person is personally responsible for reporting these hours to the unemployment insurance fund as well; otherwise, the insured person may be subject to penalties.
payroll+ AG disclaims all liability for incomplete data and information.
Who is unable to receive their own pay through payroll+?
- Self-employed individuals (sole proprietors) who buy and sell goods. Reason: Because the purchase of goods cannot be accounted for or processed through payroll+.
- Self-employed individuals (sole proprietorships) with primarily private clients and less than 100,000 in revenue. Reason: In principle, this would be possible; however, 8.1% VAT is due on all income, since it is the revenue from Payroll+ that is relevant, not the revenue of the sole proprietorship.
- Self-employed individuals (sole proprietors) who do not want to invoice customers through payroll+. Reason: Customer payments must go directly to payroll+ and not to the sole proprietorship.
Employees of these sole proprietorships can be paid through payroll+ as usual; however, the funds do not have to be transferred via payroll+, and payroll+ sends an invoice to the sole proprietorship for the employees’ total payroll costs.
What types of employment can payroll+ not handle?
- Caregivers for elderly or disabled individuals in private households. Reason: This type of care requires federal approval and cannot be processed through payroll+.
- Hiring of non-EU citizens. Reason: payroll+ cannot file a residence permit application for individuals who do not hold an EU passport
- Employment of individuals who do not work in Switzerland and reside abroad. Reason: The law of the country where the person resides and works applies, not Swiss law.
- Hiring individuals who will be sent abroad to work for a short period starting on their first day. Reason: payroll+ can only process an assignment once the individual has been employed through us for at least one month.
Since payroll+ is subject to VAT as a corporation, payroll+ must charge the current VAT rate on all invoices.
In the temporary staffing industry, all costs are subject to VAT at the current rate, not just the costs for the payroll+ service. Art. 21, para. 2, item 12 of the VAT Act
The exception here is the SME Payroll Package; for this plan, the current VAT applies only to the payroll+ fee.
You must report wages subject to AHV contributions that you have paid to individuals. Since payroll+ now pays the wages to your employees, payroll+ becomes the employer liable for contributions (Art. 12 AHVG). You will now pay an invoice for the total wage costs to us—that is, to a legal entity—rather than directly to the employees; therefore, you are no longer considered a contribution-liable employer.
When an individual moves to an EU/EFTA country, their social security coverage is reviewed. This is verified by the BVG Guarantee Fund, which must confirm to the pension fund that the individual is not subject to social security contributions in that EU/EFTA country; if this is the case, a cash payment may also be made within the EU/EFTA countries. If this cannot be confirmed, the vested benefits must remain in a blocked account (vested benefits account) in Switzerland.
EU Member States: Belgium, Bulgaria, Denmark, Germany, Estonia, Finland, France, Greece, Ireland, Italy, Croatia, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Austria, Poland, Portugal, Romania, Sweden, Slovakia, Slovenia, Spain, the Czech Republic, Hungary, and Cyprus
EFTA countries: the Principality of Liechtenstein, Iceland, Norway, and Switzerland
If you are leaving a country outside the EU/EFTA, no further verification is required. However, a confirmation of deregistration from the municipality is mandatory, and proof of civil status may also be required.
Important Information for Traveling to the European Union:
Restrictions on the cash withdrawal of pension fund assets after departure:
Tax Issues Related to the Disbursement of Pension Fund Assets When a Person Is No Longer a Resident of Switzerland:
A tax is due when pension fund assets are withdrawn. The amount of this tax varies not only from canton to canton but also from municipality to municipality. However, if you are no longer a resident of Switzerland, this capital withdrawal tax can no longer be levied. Instead, a withholding tax is deducted from the capital to be paid out; this tax is usually lower than the capital withdrawal tax but also varies from canton to canton. This withholding tax is lowest in the canton of Schwyz.
Under the occupational pension plan, the obligation to make contributions ceases as of the date of regular retirement. The deduction for BVG/PK cannot be waived, even in the case of early retirement. AHV contributions, including those for non-working individuals, must also be paid until the statutory retirement age. It does not matter whether the old-age pension was taken early or not.
If individuals remain employed beyond the normal retirement age, they are still required to pay contributions but benefit from an exemption (see section 14 et seq. https://www.ahv-iv.ch/p/2.01.d).
The normal retirement age is 65 for men and 64 for women.
Entitlement to a bridging pension exists only if, for 15 years (or at least 10 years for a reduced pension) within the last 20 years–including the last seven years prior to receiving benefits–you have been continuously employed in a position subject to contributions at a company covered by the FAR collective bargaining agreement.
A mandatory prerequisite for recognizing temporary assignments as subject to the FAR Collective Bargaining Agreement is always that the host company is also subject to the FAR Collective Bargaining Agreement.
Under the BVG plan, there is no coordination deduction; the gross salary corresponds to the insured salary.
The age percentages are as follows:
Ages 18–24 2.0%
Ages 25–34: 5.5%
Ages 35–44: 7.0%
Ages 45–54: 9.5%
55-Pension 11%
Calculation:
Gross Wage: 100 × BVG Age Rate = BVG Deduction per Party (Employer and Employee Contributions)
Example: A 40-year-old person with a daily wage of CHF 1,500.
CHF 1,500: 100 x 7 = CHF 105 BVG deduction
The BVG Basis is calculated based on the maximum salary as defined by law.
The age percentages are as follows:
Ages 18–24: 1.3%
Ages 25–34: 4.8%
Ages 35–44: 6.3%
Ages 45–54: 8.8%
55-Pension 10.3%
BVG Calculation through December 31, 2024:
Coordination deductions:
Hourly wage: CHF 11.75
Daily wage: CHF 98.70
Monthly salary: CHF 2,143.75
Annual salary: CHF 25,725
The calculation is as follows:
Gross wages exceeding CHF 40.35 per hour, CHF 338.94 per day, and CHF 7,350 per month
Since the Basic Plan is based on a maximum insurable wage, wages exceeding the amounts listed above are not taken into account for BVG contributions.
These amounts are automatically used in the calculation.
Example: If you earn CHF 80.00 per hour and choose the BVG Basic plan, your BVG contributions will be calculated based on CHF 40.35.
CHF 40.35 minus 11.75 coordination deduction per hour = CHF 28.60 maximum insurable wage per hour
CHF 338.94 minus 98.70 coordination deduction per day = CHF 240.24 maximum insurable wage per day
CHF 7,350.- x 12 months (or x 13 if a 13th-month salary is paid separately) = CHF 88,200 minus CHF 25,725 coordination deduction per year = CHF 62,475 maximum insurable wage per year : 12 (or 13) = CHF 5,206.25 maximum insurable wage per month
Next, the maximum insurable wages are multiplied by the relevant percentage of the employee’s age, and the result is the BVG deduction.
Example: A 35-year-old person
CHF 28.60 maximum insurable hourly wage: 100 × 6.3 BVG rate = CHF 1.8018 BVG deduction per page (employer and employee deductions)
Gross hourly wage of less than CHF 40.35, CHF 338.94 per day and CHF 7,350 per month
The calculations here are based on effective wages.
Example: A 35-year-old person with a gross salary of CHF 35
CHF 35.00 minus 11.75 coordination deduction per hour = CHF 23.25 insurable wage.
CHF 23.25 : 100 * 6.3 BVG rate for 35 years = CHF 1.46475 BVG deduction per page (employer and employee contributions)
Example: 30 years with a gross monthly salary of 5,000
CHF 5,000 x 12 months (or x 13 if the 13th-month salary is paid separately) = CHF 60,000 annual salary minus 25,725.- annual coordination deduction = CHF 34,275 insurable salary.
CHF 34,275 : 12 months (or : 13 months) = CHF 2,856.25 insurable earnings per month : 100 * 4.8 BVG rate for 30 years = CHF 137.10 BVG deduction per side (employer and employee contributions)
BVG Calculation Effective January 1, 2025:
Coordination deductions:
Hourly wage: CHF 12.10
Daily Wage: CHF 101.64
Monthly salary: CHF 2,205.00
Annual salary: CHF 26,460
The calculation is as follows:
Gross wages exceeding CHF 41.50 per hour, exceeding CHF 348.60 per day, and CHF 7,560 per month
Since the Basic Plan is based on a maximum insurable wage, wages exceeding the amounts listed above are not taken into account for BVG contributions.
These amounts are automatically used in the calculation.
Example: If you earn CHF 80.00 per hour and choose the BVG Basic plan, your BVG contributions will be calculated based on CHF 41.50.
CHF 41.50 minus 12.10 coordination deduction per hour = CHF 29.40 maximum insurable wage per hour
CHF 348.60 minus 101.64 coordination deduction per day = CHF 246.96 maximum insurable earnings per day
CHF 7,560.- x 12 months (or x 13 if a 13th-month salary is paid separately) = CHF 90,720 minus CHF 26,460 coordination deduction per year = CHF 64,260 maximum insurable salary per year : 12 (or 13) = CHF 5,355 maximum insurable wage per month
Next, the maximum insurable wages are multiplied by the relevant percentage of the employee’s age, and the result is the BVG deduction.
Example: A 35-year-old person
CHF 29.40 maximum insurable hourly wage: 100 × 6.3 BVG rate = CHF 1.8522 BVG deduction per page (employer and employee deductions)
Gross hourly wage of less than CHF 41.50, CHF 348.60 per day and CHF 7,560 per month
The calculations here are based on effective wages.
Example: A 35-year-old person with a gross salary of CHF 35
CHF 35.00 minus 12.10 coordination deduction per hour = CHF 22.90 insurable wages.
CHF 22.90: 100 × 6.3 BVG rate for 35 years = CHF 1.4427 BVG deduction per page (employer and employee contributions)
Example: 30 years with a gross monthly salary of 5,000
CHF 5,000 x 12 months (or x 13 if the 13th month’s salary is paid separately) = CHF 60,000 annual salary minus 26,460.- annual coordination deduction = CHF 33,540 insurable salary.
CHF 33,540 ÷ 12 months (or ÷ 13 months) = CHF 2,795 insurable earnings per month : 100 * 4.8 BVG rate for 30 years = CHF 134.16 BVG deduction per side (employer and employee contributions)
It is not absolutely necessary to make an entry, because in the event of death, the pension fund will request all necessary information and documents from the surviving dependents during the eligibility review and will determine whether a spouse and/or children are eligible for benefits. You will find all information regarding death benefits in the Pension Plan Regulations starting on page 14.
If you would still like to register your partner, you can find a cohabitation declaration here. You can then fill it out and send it to Tellco PK Pro so that your partner’s information is entered directly into the system.
For the “Temporary Staffing” and “Individual Employment Contract (OR)” employment models (Freelancer Online Tool), enrollment is handled through Tellco PK Pro. For the “Smart” employment model, please check with your employer in advance to see if enrollment through the payroll+ pension fund solution has been selected for you.
Here’s how to get access to Tellco’s free online portal:
Please register here: https://app.eplix.ch/de_CH/registration?system=TELLCO
You can then order a pension statement from your profile.
Your pension fund balance can be transferred from a former employer or the default pension fund to Pensionskasse Pro as soon as you are registered. Please note that we process the pension fund registration in the month following your start date. The registration process takes about two months. Only after that can your existing pension fund balance be transferred to Tellco.
Please contact us so we can send you the transfer form: info@payrollplus.ch
If you have any questions about the pension fund, you can contact Pension Fund Pro directly or consult the pension fund regulations.
PK Pro
058 442 26 00
Our pension fund contributions are not based on an estimate made at the beginning of the year, but are calculated based on your actual payroll. As part of our process, payroll+ reports all payroll payments from the previous month by the middle of the following month. The Tellco Pension Fund typically needs 30 to 45 days to credit our contributions to the corresponding employee accounts. Once this process is complete, we can initiate your deregistration with the pension fund. The deregistration process at the Tellco Pension Fund takes about one month. Once you have been successfully deregistered, you will receive a confirmation that you can use to inform Tellco where your balance should be transferred.
Example:
Your last paycheck was issued on December 13, 2023. payroll+ will submit the report to the pension fund on January 15; the Tellco Pension Fund requires up to 45 days to credit the employee accounts—that is, by the end of February—so the termination of coverage cannot take place until early March, and the transfer of the pension fund balance will occur around the end of March.
Yes, we can offer a BVG supplementary plan. You can find the information sheet with all the relevant details about our executive policy at the following link: Executive Policy
You can make a purchase from PK Pro or have it reviewed at any time. To do so, please use the following form:
BVG Basic (through December 31, 2024)
Maximum hourly wage: CHF 40.35
Maximum insurable hourly wage: CHF 28.60
Coordination deduction per hour: CHF 11.75
Maximum annual salary: CHF 88,200.
Maximum insurable annual salary: CHF 62,475.
Annual coordination deduction: CHF 25,725.
BVG Base (effective January 1, 2025)
Maximum hourly wage: CHF 41.50
Maximum insurable hourly wage: CHF 29.40
Coordination deduction per hour: CHF 12.10
Maximum annual salary: CHF 90,720
Maximum insurable annual salary: CHF 64,260
Annual coordination deduction: CHF 26,460
BVG Leadership Team
Maximum hourly wage: CHF 386.65
Maximum insurable hourly wage: CHF 386.65
No coordination deduction
Maximum annual salary: CHF 845,603.55
Under the freelancer model, payroll+ AG enters into an employment contract with the freelancer in accordance with OR 319, thereby making payroll+ AG the freelancer’s legal employer. payroll+ AG issues an invoice for the total wage costs to the respective client company, which then makes the payment exclusively to payroll+ AG’s corporate bank account. This ensures that the freelancer is not engaged in bogus self-employment.
Payroll+ remits the BVG deduction to Tellco in the month following each payroll period. Our pension fund contributions are not based on an estimate made at the beginning of the year, but are calculated based on your actual payroll. As part of our process, payroll+ reports all payroll payments from the previous month by the middle of the following month. The Tellco Pension Fund typically requires 30 to 45 days to credit our payments to the corresponding employee accounts.
Therefore, as of the date of issuance, the pension statement shows only contributions made up to approximately two months prior to that date. In addition, in accordance with BVG regulations, only the savings contribution is credited to the account. The risk and administrative portions remain with the pension fund to finance the benefits. The respective percentages are listed in the information sheets for the Basic Plan and the Executive Plan (see “Pension Fund” under “Downloads”).
Example: Age Category 55 Pension, Executive Plan, Gross Salary of 5,000 CHF
The total monthly BVG deduction (employer and employee contributions combined) is 22%. 5,000 * 22% = 1,100 CHF.
The savings contribution is 9% for both parties—18% in total.
1100/22 * 18 = 900 CHF: 900 CHF appears as savings in Eplix.
The following employees are subject to mandatory insurance:
1 Employees who are over 17 years of age and receive an annual salary of more than CHF 22,680 (effective January 1, 2025) from an employer (Art. 7) are subject to mandatory insurance. The monthly wage must exceed CHF 1,890.
2 If an employee has been employed by an employer for less than one year, the annual wage is deemed to be the wage the employee would have earned had he or she been employed for the entire year.
Art. 25 Mandatory Insurance for Employees and the Unemployed
The following employees are not subject to mandatory insurance:
a. Employees whose employers are not required to pay contributions to the AHV;
b. Employees with a fixed-term employment contract of no more than three months; subject to Article 1k;
c. Employees who work part-time and are already covered by mandatory insurance for their primary employment or who are self-employed as their primary occupation;
For the “Temporary Staffing” and “Individual Employment Contract (OR)” employment models (Freelancer Online Tool), enrollment is handled through tellco PK Pro. For the “Smart” employment model, please check with your employer in advance to see if enrollment through the payroll+ pension fund solution has been selected for you.
Here’s how to get access to tellco’s free online portal:
Please register here: https://app.eplix.ch/de_CH/registration?system=TELLCO
You can then view your balance in your profile.
Please note the billing cycle for pension fund contributions:
Our pension fund contributions are not based on an estimate made at the beginning of the year, but are calculated based on your actual payroll. As part of our process, payroll+ reports all payroll payments from the previous month by the middle of the following month. The Tellco Pension Fund typically needs 30 to 45 days to credit our contributions to the corresponding employee accounts.
Example:
Your last payroll payment was made on December 13, 2023. Payroll+ will submit the report to the pension fund on January 15; the Tellco Pension Fund requires up to 45 days to credit the amounts to employee accounts—that is, by the end of February—so you will not see the credit in your pension fund account until early March.
Switzerland’s pension system is based on three pillars and has consistently proven its worth in international comparisons.
The First Pillar (AHV, IV, EO)
This is in line with the principle of solidarity. All working people (including cross-border commuters) and employers pay monthly contributions that fund current retirees (AHV pension).
The retirement age is 65 for men and 64 for women.
The first pillar thus provides a basic livelihood in old age and in the event of death (AHV), in the event of disability (IV), and in the event of loss of earnings (EO). The goal here is to ensure a basic livelihood.
The Second Pillar (BVG, UVG)
Occupational pension plans constitute the second pillar. This refers to company pension funds. Together with the AHV (first pillar), these are intended to provide coverage for 75% of a person’s final salary. Unlike the first pillar, this is not a pay-as-you-go system; rather, each individual saves based on their salary within the pension plan. The second pillar is thus designed to promote individual savings.
Pension fund contributions are mandatory, and at least 50% must be paid by the employer.
The Third Pillar
This constitutes private pension provision, which was enshrined in the Federal Constitution in 1972.
It is designed to close pension gaps in the first and second pillars and to build wealth.
A distinction is made between Pillar 3a (restricted pension savings) and Pillar 3b (unrestricted pension savings).
Pillar 3a is capped by the government at a maximum annual amount and is tax-deductible. It is also subject to certain restrictions on when the funds can be withdrawn (retirement, purchase of a home, emigration). Pillar 3b has fewer restrictions but also offers no tax benefits. The purpose of Pillar 3 is to supplement income after retirement.
In the referendum held on September 27, 2020, the proposal for paid paternity leave was approved with 60.3 percent of the vote in favor. This means that fathers are entitled to two weeks of paid leave within six months of the birth of a child. Like maternity benefits, this leave is funded through the Income Replacement Scheme (EO). The measure takes effect on January 1, 2021.
Who is eligible?
Loss of earnings during paternity leave is compensated. The same principles apply as for maternity leave. Fathers who were employed at the time of the child’s birth–whether as employees or self-employed individuals–are eligible for compensation. They must also have been covered by mandatory AHV insurance for the nine months prior to the birth and have been employed for at least five months during that period. The compensation is paid either directly to the employee or to the employer, if the employer continues to pay the employee’s wages during the leave.
Amount of Compensation
As with maternity leave, the benefit amounts to 80 percent of the average earned income prior to the child’s birth, up to a maximum of 196 francs per day. For two weeks of leave, 14 daily benefits are paid, resulting in a maximum amount of 2,744 francs.
payroll+ calculates employer and employee social security deductions in accordance with applicable law. By law, social security deductions must be calculated based on gross pay.
Employer Deductions:
- 5.30% AHV (Pillar 1, Old-Age and Survivors’ Insurance)
- 1.10% ALV (Unemployment Insurance)
- 0.30% AHV administrative fees (charged by the AHV to cover its processing costs)
- 1.30% FAK (The Family Allowance Fund must be paid by all employers by law)
- 1.60% KTG* (daily sickness benefit insurance starting on the 4th day or as specified in the collective bargaining agreement)
- SUVA Occupational Accident Insurance by Category (SUVA Office 0.40%, Skilled Trades 6.10%, Industrial and Service Occupations 1.40%)
- 1–5% employer-related costs (statutory absences, etc., depending on the contract)
Employee Deductions
- 5.30% AHV (1st Pillar, Old-Age and Survivors’ Insurance)
- 1.10% ALV (Unemployment Insurance)
- 1.60% KTG* (daily sickness benefit insurance starting on the 4th day or as specified in the collective bargaining agreement)
- SUVA Non-Occupational Accident Insurance by Category (SUVA Office 0.65%, Skilled Trades 2.96%, Manufacturing 1.23%, Services 1.23%)
AHV exemption of 2,500 per year
As a general rule, AHV/IV/EO and ALV contributions must be deducted from every payroll payment. This applies without exception to individuals who
- are employed in a private household (however, wages of up to 750 francs per year paid by employers to young people up to age 25 remain exempt from contributions; see section 6) or
- are paid by dance and theater producers, orchestras, music and audiovisual producers, radio and television, as well as schools in the arts. Outside of these industries, no fees need to be collected if
- the salary does not exceed CHF 2,500 per year, and
- the employee does not request that contributions be paid. AHV information sheet: https://www.ahv-iv.ch/p/2.04.d
If your invoice to the customer does not exceed CHF 2,500, you can fill out an AHV waiver form, and your customer may pay you this amount without any issues or AHV deductions, even if you do not have your own legal entity.
*A 1.60% deduction (3-day waiting period) is mandatory for our Freelancer OR and Temporary Staffing employment models; with our Smart Online Tool, you can choose between 0.60% (30-day waiting period) and 1.60% (3-day waiting period)
Expenses must always be business-related. Only the client or the company where the work is performed can determine at any time whether the expenses are business-related. In the event of an AHV/SUVA audit, payroll+ would have great difficulty verifying these expenses.
For this reason, we strongly recommend that freelancers, contractors, and employees bill their expenses directly to the client or the company where they are working.
Billing Directly Through the Customer
The advantage for freelancers, contractors, and employees of receiving direct payment from the client or the company where they are assigned is that this payment is not considered part of their wages, since the client or the company where they are assigned does not pay wages and therefore does not have to issue a wage statement. If payroll+ pays the freelancer, contractor, or employee their wages plus expenses, this may be considered a wage component subject to AHV contributions. If it is considered part of the salary, a corresponding note will be made on the salary statement (see “Guidelines for Filling Out the Salary Statement or Pension Certificate,” Form 11).
Payroll processing by payroll+
Input Tax on Expenses
When paying business expenses, it is permissible to claim a VAT refund provided certain formal requirements are met. One of these requirements is the name and address of the recipient of the service. In this case, the company name as listed in the commercial register must be provided in full and without alteration.
If expenses are processed through payroll+, payroll+ cannot deduct the VAT as input tax from the submitted expense receipts, since payroll+ is not the recipient of the services listed on the submitted expense report. payroll+ must invoice the total amount of the expense report plus an additional 8.1% VAT and a margin of 1–3%. You may claim the input tax deduction only on the VAT charged by payroll+.
Expenses must always be business-related and justified.
Furthermore, employees can submit expense receipts for business-related expenses to your company using an expense form, and only you can effectively determine whether an expense is business-related or not.
Since payroll+ cannot verify business compliance, this will lead to many questions during an AHV and VAT audit that we will not be able to answer.
For the reasons mentioned above, and so that you can save money, we recommend that you bill your expenses through your company rather than through payroll+.
If the client/assigning company does not wish to make a direct payment to the freelancer, contractor, or employee, and the freelancer, contractor, or employee is aware that a corresponding note will appear on the wage statement and is aware of and accepts the reasons stated above, he or she may claim expenses through us. In accordance with the expense regulations approved by the Schwyz Cantonal Tax Administration on July 20, 2017, the following can be claimed: 1. actual expenses based on submitted original receipts and/or 2. flat-rate expenses amounting to 5% of gross pay. In addition to the original receipts, payroll+ requires a letter signed by the freelancer, contractor, or employee containing the following text: “I hereby confirm with my signature that these are business-related expenses.”
If a freelancer, contractor, or employee acts with fraudulent intent when claiming expenses, they are liable to criminal prosecution. They are required to review the expense policy and strictly comply with it.
Expense Reports in the Online Tool:
You can bill the customer for the expenses as usual. Please fill out our expense form (Excel file available for download). Once your customer has paid the invoice, you can include the expense amount when creating the work report and upload the expense form and supporting documents.
Notes on the Pay Statement
Flat-rate expenses are reported by amount under Section 13.2.1.
Expenses in Foreign Currency
Expense amounts in a foreign currency must be converted to Swiss francs directly by the freelancer, contractor, or employee. If the invoice is already issued to the client in a foreign currency, it will be converted to Swiss francs once the payment is received by payroll+.
If your annual income exceeds CHF 120,000, the tax office will automatically send you a tax return.
Otherwise, the deduction made by your employer (payroll+) is sufficient; however, if you wish, you can all apply for and file a tax return with the tax office. To do so, please contact the tax office in the canton where you live.
Swiss Code of Obligations, Art. 327a
The employer must reimburse the employee for all expenses necessarily incurred in the performance of the work; in the case of work at off-site locations, the employer must also reimburse the employee for living expenses.
AHVV Art. 9
- Expenses are costs incurred by the employee in the performance of his or her work. Reimbursements for expenses are not included in the taxable wage.
- Expense reimbursements do not include regular reimbursements for an employee’s commute from their place of residence to their usual place of work, nor for customary meals at their place of residence or at their usual place of work; these are generally considered part of the relevant wages.
Examples of expenses for rent, a company car, health insurance, a Half-Fare Card, and a General Subscription
Payment of Rent for Employees
- Such compensation, or the direct payment of housing costs for the employee, constitutes a benefit in kind and must be included in the calculation of wages (except for work-from-home compensation).
Company vehicle is also used for personal purposes
- This constitutes a monetary benefit and must be included in the calculation of wages. 0.9% of the car’s purchase price.
Health insurance is paid for by the company
- This also constitutes a monetary benefit and must be included in the calculation of wages.
The company pays for the Halbtax pass for train travel (SBB)
- This does not constitute a monetary benefit, does not have to be offset, and can be paid in full.
The Generalabonnement (GA from SBB) is used for both personal and business purposes
- The employee must not be paid the entire amount for one year.
- Each month, the employee can look up the routes they travel for business purposes on the SBB website and provide us with the fare for the 2nd-class route with a Half-Fare Card (if they have a 2nd-class GA) or the 1st-class fare with a Half-Fare Card (if they have a 1st-class GA). They will then be reimbursed for this amount. This reimbursement may not exceed CHF 390 for 2nd class or CHF 545 for 1st class per month; this is the price of a GA pass per month. The amounts can be accumulated; for example, if the cost is less than CHF 390 in one month and exceeds that amount in another, the amounts can be offset against each other.
Expenses must always be business-related. Only the client or the company where the work is performed can verify at any time whether the expenses are business-related. In the event of an AHV/SUVA audit, payroll+ would have great difficulty verifying these expenses. Therefore, we strongly recommend that freelancers, contractors, or employees bill their expenses directly to the client or the company for which they are working.
When submitting expense reports via payroll+, you must use the expense report form: Downloads
In Section 2 of the Expense Policy you will find provisions regarding travel expenses.
Example:
Client based in downtown Bern; freelancer based in downtown Zurich
SBB Fare: Bern Main Station – Zurich Main Station, one-way ticket without discount, 2nd class: 51 CHF
SBB GA Monthly Pass (2nd Class) Travel Costs: 340 CHF
340 CHF / 51 CHF = 6.66
Through the 7th trip: Billing based on individual receipts
Starting with the 7th trip, a monthly GA pass can be billed
Travel costs by car: Bern city center to Zurich city center, 124 km. At 0.70 CHF/km
124 × 0.70 CHF = 86.80 CHF
Meaning: The car would be more expensive for this route and therefore cannot be billed
payroll+ must verify in advance whether invoices to foreign countries can be issued without VAT. Please contact payroll+ to verify whether invoicing without VAT is possible.
All wages are paid in Swiss francs (CHF), since social security contributions in Switzerland must be paid in CHF.
Foreign currency is converted at the daily exchange rate on the date the funds are received by the bank. payroll+ has no influence on the exchange rate.
You can contact us at any time with questions about billing.
Commuting expenses cannot be claimed as business expenses. If your client wishes to pay for your commute, this is considered part of your wages and must be taxed as usual.
Whether your commute is tax-deductible depends on the tax regulations of your canton and the length of your commute. Please contact your tax office for more information.
On January 1, 2021, the amendment to the Withholding Tax Ordinance will take effect. The Swiss withholding tax system, which dates back to 1995, will thus undergo fundamental changes after 25 years. The goal is to ensure equal treatment between employees subject to withholding tax and those subject to regular taxation. At the same time, legal certainty for employers and employees will be enhanced.
Taxpayers subject to withholding tax who are resident in Switzerland and have an annual gross earned income of CHF 120,000 or more remain subject to a mandatory subsequent regular assessment (NOV). Employees subject to withholding tax with an annual gross earned income below this threshold may now also apply for a NOV. In addition, you may request a recalculation or apply for a NOV if you disagree with the withholding tax deduction applied to your income. To do so, you must contact the relevant tax authority (the tax authority in your canton of residence) by March 31.
Note on retroactive regular assessment: If a person subject to withholding tax who is resident in Switzerland and has an annual gross earned income below the threshold submits a request for a retroactive regular assessment (NOV), this decision is legally binding for all future years as well. However, this does not apply to withholding tax payers who are not resident in Switzerland (so-called “quasi-residency” = tax residence abroad, place of work in Switzerland). The requirements for filing the NOV are met if, in the relevant tax year, at least 90% of the worldwide gross earned income was taxable in Switzerland.
What do these changes entail, and what do they mean for you specifically?
- Elimination of the “D” Part-Time Employment Rate
- Billing based on a monthly plan – valid for the cantons of AG, AI, AR, BE, BL, BS, GL, GR, JU, LU, NE, NW, OW, SG, SH, SO, SZ, TG, UR, ZG, and ZH
- The month is considered a tax period
- The income used to determine the rate is calculated based on total monthly gross earnings (hourly wage multiplied by 180 hours per month / daily wage multiplied by 21,667 days per month)
- Billing Based on the Annual Model – Valid for the cantons of FR, GE, TI, VD, and VS
- The year is considered a tax period
- The income used to determine the rate is calculated based on the total gross income subject to taxation in the relevant year (hourly wage based on 2,160 hours per year / daily wage based on 260 days per year)
Important Note for Individuals Subject to Withholding Tax Who Have Multiple Employers and part-time employees
- If the employer knows the employee’s total employment rate, the wage used to determine the income bracket is adjusted to reflect the actual total employment rate across all gainful activities
- If the employer does not know the employee’s total employment rate, the wage used to determine the income bracket is extrapolated to a 100% employment rate.
- If the employer knows the employee’s total income, the wage used to determine the income bracket is based on the actual total gross income.
To ensure that their taxable income is calculated correctly, individuals subject to withholding tax who have multiple jobs and/or part-time employment must therefore disclose their total employment rate. This applies to all income from employment and/or self-employment.
If neither the workload nor the wages earned from another job are reported to payroll+, the income used to determine the rate for each employment relationship must be adjusted to a 100% workload.
Lump-sum expense allowances are typically used to reimburse senior executives or field staff for minor expenses (usually individual out-of-pocket expenses of up to CHF 50.–) and entertainment expenses (e.g., for private invitations at home). Beneficiaries may then no longer claim such minor expenses up to CHF 50.– per occurrence as actual expenses.
Examples of what is covered by entertainment expenses
According to the model regulations, minor expenses that are covered by entertainment expenses include, in particular:
- Invitations from business partners to small meals at a restaurant or at home
- Gifts for Invitations from Business Associates (e.g., flowers and alcoholic beverages)
- Snacks (excluding lunch and dinner on business trips)
- Tips
- Business calls made from personal phones
- Invitations for Employees and Gifts to Employees
- Contributions to institutions, organizations, etc.
- Incidental expenses for and on behalf of customers without receipts
- Small expenses incurred during meetings and sessions
- Tram, bus, and taxi rides
- Parking Fees
- Business trips by private car within the local area (30-km radius)
- Postage and telephone charges
- Dry Cleaners
What is withholding tax, and how much is the withholding tax deduction?
Withholding tax is a tax that is not paid by the taxpayer directly, but rather by the employer. The amount owed is deducted before payment and remitted to the government.
Withholding tax applies to foreign employees who are residents of or staying in Switzerland, as well as to all employees who are not residents of or staying in Switzerland (including Swiss citizens).
Withholding tax is calculated differently depending on the canton, marital status, religious affiliation, and number of children. Each employee is assigned a withholding tax rate code for this purpose.
The withholding tax rate code is determined by the tax rate, the number of children, and religious affiliation.
Pay Grade Categories
A – Rate for single individuals
B – Tax bracket for married, single-income households
C – Tax Bracket for Married Couples with Two Incomes
D – Rate for Part-Time Work
Number of children
A maximum of 9 can be included; the number of children is taken into account only if child allowances are also paid through payroll+.
Church Tax
Y – With church tax
N – No church tax
Example: A0Y Single person without children who pays church tax
Comparis Withholding Tax Calculator:
https://www.comparis.ch/neu-in-der-schweiz/finanzen/quellensteuer
These are skilled workers and managers who normally reside abroad and come to Switzerland to work temporarily, either for a specific project or for a limited period.
“Temporary” refers to a fixed-term employment contract lasting no more than 5 years. Once the position becomes permanent, these expenses can no longer be deducted. Therefore, as soon as we issue a permanent contract, these expenses may no longer be paid.
Travel Expenses:
The necessary expenses for travel between your foreign residence and Switzerland; proof of mileage reimbursement or receipts for airfare are required.
Housing Costs:
Reasonable housing costs in Switzerland when maintaining a residence abroad that is permanently available for personal use. This requires proof of the residence abroad or in Switzerland in the form of a lease agreement, mortgage, or heating/utility bills. No supporting documents are required; a flat rate of CHF 1,500 may be claimed for a maximum of 5 years, unless the expatriate was already in Switzerland prior to that time, in which case the claim is no longer valid. The expatriate may claim housing costs exceeding CHF 1,500 on their tax return.
Relocation Expenses:
The necessary expenses for relocation to Switzerland and back to the employee’s former country of residence abroad, as well as the necessary round-trip travel expenses for the expatriate and his or her family at the beginning and end of the employment relationship, will be covered provided that all related expenses can be substantiated.
Tuition Costs:
The costs for the education of minor foreign-language-speaking children at private schools that teach in a foreign language, provided that public schools do not offer instruction in their language; all supporting documentation is required.
You can find the regulation here:
Since payroll+ is subject to VAT as a public limited company (AG), payroll+ must charge the current VAT rate on all invoices. According to the law and numerous court rulings, temporary staffing is subject to VAT, and since payroll+ AG is a temporary staffing agency, we must charge VAT on our invoices.
In the Temporary Staffing and Freelancer Online Tool, the total invoice amount is subject to 8.1% VAT. (Art. 21, para. 2, item 12 of the VAT Act).
Example: You issue an invoice for CHF 10,000 to your customer, but the actual invoice amount your customer pays is CHF 10,770. But don’t worry—your customer will get the VAT back, provided they can claim the input tax credit.
In the payroll+ Smart plan, the 8.1% VAT is charged only on the payroll+ costs, not on the invoice amount.
Example: Your total payroll costs are 10,000 CHF. We charge 3% for our services, which amounts to CHF 300. You pay VAT only on this amount. Therefore, your actual invoice total is CHF 10,323.10 instead of CHF 11,093.10,
If work is performed for a service recipient abroad, payroll+ can disable VAT. To do so, please contact a payroll+ representative directly.
Yes, you can. You can find the terms and conditions and the relevant forms here: https://www.zas.admin.ch/de/beitritt-zur-freiwilligen-ahviv
Entitlement to a bridging pension exists only if, for 15 years (or at least 10 years for a reduced pension) within the last 20 years–including the last seven years prior to receiving benefits–you have been continuously employed in a position subject to contributions at a company covered by the FAR collective bargaining agreement.
A mandatory prerequisite for recognizing temporary assignments as subject to the FAR Collective Bargaining Agreement is always that the host company is also subject to the FAR Collective Bargaining Agreement.
The employee is required to notify payroll+ on the first day of illness. If the employee is unable to work through no fault of their own within the first three months, the employee, under an open-ended employment contract, is not entitled to wages prior to the first day of the fourth month of employment; the employee must therefore bear the loss of wages during the three-month waiting period. This does not affect the benefits provided by the collective daily allowance insurance, which takes effect on the 31st day in the event of a prolonged illness. This does not apply if a generally binding collective bargaining agreement contains different provisions.
If the employee becomes ill for an extended period during the probationary period, payroll+ may terminate the employment relationship at any time in accordance with Art. 335b, para. 1, of the Swiss Code of Obligations (OR). Termination for cause pursuant to Art. 336c(1)(b) of the Swiss Code of Obligations (OR) does not take effect until the employee has successfully completed the probationary period. This termination is not intended as a form of harassment but is based on pragmatic grounds. Each time a case of illness is reported to the daily sickness benefit insurance provider and benefits are paid out, the policy is charged accordingly. As soon as the number of reported cases reaches a certain threshold, the daily sickness benefit insurance provider will increase premiums accordingly, as this represents a higher risk for them. payroll+’s business model is vulnerable to a higher rate of sick leave claims, as it involves a triangular employment relationship. To prevent the premiums for the group daily sickness benefit insurance from rising to exorbitant levels–which also benefits the other employees–and to protect against fraud, payroll+ AG has no choice but to terminate the employment relationship in such cases.
If the employee resigned voluntarily, these waiting periods do not apply.
After recovery, the employment relationship can be resumed following mutual agreement and the signing of a new contract with payroll+.
If you have been in an accident, please contact us as soon as possible at info@payrollplus.ch.
In order for us to file the accident report immediately, we also need the following information:
- Work-Related Accident / Non-Work-Related Accident
- Operational Status at the Time of the Accident
- Are you unable to work? If so, for how long? (Please attach a doctor’s note.)
- Date and time of the accident
- Location of the Accident (Address/ZIP Code/City)
- Usual workplace
- Location of the accident (garage / home / street)
- Facts: What exactly happened
- Injured body part
- Side of the injury (left / right)
- Type of injury (bruise / inflammation / etc.)
- Primary Care Physician
- Standard working hours
- Employee’s Work Hours / Workload
- Last day of work before the accident
- Do you have any other employers besides payroll+? If so, please specify your hours worked.
- Are you currently receiving temporary benefits and/or actively registered with the employment office?
https://www.suva.ch/de-ch/versicherung/unfallversicherung/abredeversicherung
Here, you can purchase contract insurance through payroll+ after your assignment ends.
The KVG (Health Insurance Act) stipulates that anyone who comes to Switzerland to work or registers as a resident in Switzerland must enroll in a recognized Swiss health insurance plan. If a person fails to comply, the Office of Migration will automatically enroll them in a health insurance plan.
Only cross-border commuters who have their primary residence in the following countries and can provide proof of adequate health insurance in their country of residence are eligible for an exemption:
Germany, France, Italy, Austria, Portugal (2), Spain (2)
People whose primary residence is in Liechtenstein do not need insurance in Switzerland
People from the following countries are required to have health insurance in Switzerland:
Belgium, Bulgaria, Denmark, Estonia, Finland, Greece, Great Britain, Ireland, Iceland, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Norway, Poland, Portugal (1), Romania, Sweden, Slovakia, Slovenia, Spain (3), Czech Republic, Hungary, and Cyprus
(1) Only for cross-border commuters and the unemployed; retirees with permanent residence in Switzerland:
(2) Only retirees;
(3) Except for retirees
http://www.gebo.ch/sozialversicherungen-grenzuberschreitend/
Our employees are insured for illness through SWICA Insurance and for workplace and non-workplace accidents through Suva Linth. The insurance benefit amounts to 80% of average earnings for a benefit period ranging from 04 to 720 days. BVG contributions are processed by PK Pro in Schwyz. For further details, please refer to the BVG benefits sheet. Social security contributions such as AHV, IV, EO, and ALV are processed as required by law.
For information about insurance, please feel free to contact us at any time at 055 416 50 50.