Switzerland – Geneva

Payroll and Benefits Guide

Last updated:

Dec 8, 2022

Overview

Capital

Bern

Currency

Swiss Franc (CHF)

Date Format

dd/mm/yyyy

Fiscal Year

1 January- 31 December

Payroll Frequency

Monthly

Employer Taxes

10.463% to 14.463% + 31 CHF per employee

Contributions

Employer

Employer Payroll Contributions

5.30%	Old Age, Survivors, Disability Insurance
1.10%	Unemployment Insurance (maximum 148,200 CHF)
0.50%	Supplementary Unemployment Insurance (above 148,200 CHF)
2.45%	Family Compensation Fund
0.043%	Maternity Insurance
0.07%	Early Childhood Contribution
31 CHF per employee	Vocational training Fund
1.00% to 4.00%	Occupational Accident Insurance – Contribution percentage varies based on the insurance provider as well as the degree of risk that the employee is exposed to.
10.463% to 14.463% + 31 CHF per employee	Total Employment Cost

Employee

Employee Payroll Contributions

5.30%	AVS / AI / APG
1.10%	Unemployment Insurance
0.50%	Supplemental Unemployment Insurance
0.043%	Maternity Insurance
0.225%	Income Compensation
~	Non-Occupational Accident Insurance – Contribution percentage varies based on the insurance provider as well as the degree of risk that the employee is exposed to.
7.168%	Total Employee Cost

Employee Income Tax

0%	17,663 or Less (Geneva Cantonal Tax)
8%	17,664-21,281
9%	21,282-23,409
10%	23,410-25,537
11%	25,538-27,665
12%	27,666-32,985
13%	32,986-37,241
14%	37,242-41,498
14.5%	41,499-45,754
15%	45,755-73,420
15.5%	73,421-120,238
16%	120,239-161,736
16.5%	161,737-183,017
17%	183,018-261,757
17.5%	261,758-278,782
18%	278,783-392,636
18.5%	392,637-615,022
19%	More than 615,022

Minimum Wage

General

In Geneva, the hourly wage is 23 CHF across all industries.

Payroll

Payroll Cycle

Employees must be paid monthly by the last working day, however, the pay date is typically by the 25th of the month.

Working Hours

General

Contractually agreed working hours are 40 or 42 hours per week. Depending on the field of work, the maximum number of working hours a week is either 45 or 50 hours.

Overtime

Overtime work is compensated at 125% of the regular pay rate, or time off is given in lieu of payment.

Working Week

Monday-Friday

Leave

Paid Time Off

Employees over the age of 20 receive 4 weeks of paid holiday. Under the age of 20, they receive 5 weeks of paid holiday.

Public Holidays

Geneva has 9 public holidays.

Sick Days

Employees are entitled to continuous salary payments for a certain period of time depending on their years of service (three weeks during the first year of service). Alternatively, employers may take out a daily benefits insurance scheme, under which employees usually receive 80% of their last salary for a maximum of 720 days.

Maternity Leave

Maternity allowance is given to employees who have contributed to the OASI for at least 9 months preceding the delivery and have worked for at least five months.

Mothers (both full-time and part-time employees) are paid 80% of their wages in the form of a daily allowance for 98 days (up to a maximum cap of SFr 196 per day). However, Geneva law provides an additional two weeks, amounting to a total of 16 weeks.

Paternity Leave

Fathers in Switzerland are entitled to 10 days of paid paternity leave and federal employees will now be entitled to 4 weeks of paternity leave. This leave can either be taken either on a weekly basis (weekends included) or on the basis of individual days. As is the case with maternity leave, weekends are included in the compensation. Consequently, 14 daily allowances and is entitled to a total of 10 days off work. The paternity leave must be taken within six months of the birth of the child.

Paternity leave benefits will equal 80% of the employee’s average salary prior to the baby’s birth but will be capped at a total of CHF2,744, or CHF196 per day.

Parental Leave

There are no statutory laws on parental leave.

Other Leave

Care leave – 14-week period of paid leave to provide care for seriously ill or injured children.

Termination

Termination Process

Termination in Switzerland has the principle of freedom of dismissal, making it possible to terminate a contract of employment without there being an important reason, provided that such termination is not discriminatory or abusive. The reason for the dismissal must be explained when the other party requests it. Even if the dismissal is valid through oral termination, it is advisable to do so in writing for evidentiary purposes.

Notice Period

Termination is considered legally valid from the moment the recipient receives it.

The statutory notice periods are as follows:

7 days during the trial period
1 month during the first year of service
2 months during the second to the ninth year of service
3 months from the tenth year of service

Alternatively, the parties can contractually agree on a notice period.

A fixed-term employment contract ends on the expiry of the agreed period.

Severance Pay

An employee is entitled to severance pay if it is stated in their contract, or if they are over the age of 50 and have worked in the company for at least 20 consecutive years. Severance payment is two month’s of salary.

Common Benefits

General

Mobile phone allowance
Work from home allowance

VISA

In Switzerland, there are two ways one may obtain a work permit:

A citizen of an EU member state or a citizen of the European Free Trade Association (and can enter Switzerland for 3-6 months while they search for a job):
L (short-term resident): This is a permit valid from 3-12 months for individuals that have a valid employment contract.
B (resident foreign nationals): This permit is for foreign nationals that have a valid employment contract for at least 12 months. This permit is valid for up to 5 years and can be extended automatically if the duration of the employment is extended.
C (settled foreign nationals): This permit is valid indefinitely after one has resided in Switzerland for 5 uninterrupted years.
G (cross-border nationals): For citizens who work in Switzerland but reside in a different country. Cross-border commuters must return home at least once a week.

Note that the EU Blue Card is not valid in Switzerland.

Non-EU/EFTA Nationals: When an EU/EFTA citizen cannot be hired for a job, a company can extend a job offer to a third-party national. The employer must be able to show that they have made efforts to hire an EU/EFTA or any individual that already resides in Switzerland and must be able to show why the candidate was not fit for the job. For non-EU/EFTA nationals, permits L, B, and C can be applied for. However, there is no limit to how long it may take to obtain the work permit.

VAT

General

VAT is 7.7% standard rate.