Switzerland – Zurich

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

8.17% - 23.50%

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)
1.00% - 3.00%	Family Compensation Fund
0.17% -13.50%	Supplemental Unemployment Insurance (maximum 148,200.00 CHF)
0.10%	Vocational training Fund
Occupational Pension Scheme	Dependent on pension plan and is employer specific
8.17% - 23.50%	Total Employment Cost

Employee

Employee 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)
1.00% - 4.00%	Non-Occupational Accident Insurance (Maximum 148,200.00 CHF)
Occupational Pension Scheme	Dependent on pension plan and is employer specific
Medical Insurance	Dependent on coverage and private insurance
7.90% - 10.90%	Total Employee Cost

Employee Income Tax

Single Taxpayer - Zurich Cantonal Tax:
0.00%	Less than 6,700.00 CHF
2.00%	6,700.00 CHF – 11,400.00 CHF
3.00% + 94.00 CHF	11,400.00 CHF – 16,100.00 CHF
4.00% + 235.00 CHF	16,100.00 CHF – 23,700.00 CHF
5.00% + 539.00 CHF	23,700.00 CHF – 33,000.00 CHF
6.00% + 1,004.00 CHF	33,000.00 CHF – 43,700.00 CHF
7.00% + 1,646.00 CHF	43,700.00 CHF – 56,100.00 CHF
8.00% + 2,514.00 CHF	56,100.00 CHF – 73,000.00 CHF
9.00% + 3,866.00 CHF	73,000.00 CHF – 105,500.00 CHF
10.00% + 6,791.00 CHF	105,500.00 CHF – 137,700.00
11.00% + 10,011.00 CHF	137,700.00 CHF – 188,700.00 CHF
12.00% +15,621.00 CHF	188,700.00 CHF – 254,900.00 CHF
13.00% + 23,565.00 CHF	Over 254,900.00 CHF

Married Taxpayer - Zurich Cantonal Tax

0.00%Less than 13,500.00 CHF2.00%13,500.00 CHF – 19,600.00 CHF3.00%19,600.00 CHF – 27,300.00 CHF + 122.00 CHF4.00%27,300.00 CHF – 36,700.00 CHF + 353.00 CHF5.00%36,700.00 CHF – 47,400 CHF + 729.00 CHF6.00%47,400.00 CHF – 61,300.00 CHF + 1,264.00 CHF7.00%61,300.00 CHF – 92,100.00 CHF + 2,098.00 CHF8.00%92,100.00 CHF – 122,900.00 CHF + 4,254.00 CHF9.00%122,900.00 CHF – 169,300.00 CHF + 6,718.00 CHF10.00%169,300.00 CHF – 224,700.00 CHF + 10,894.00 CHF11.00%169,300.00 CHF – 224,700.00 CHF +10,894 CHF12.00%284,800.00 CHF – 354,100.00 CHF + 23,045.00 CHF13.00%Over 354,100.00 CHF + 31,361.00 CHF

Payroll

Payroll Cycle

The payroll cycle is generally monthly, with payments made on the 25th of each month.

13th Salary

A 13th salary is not compulsory, but it is very common and, if due, will be outlined in the employment contract or collective bargaining agreement.

Working Hours

General

Standard working hours in Zurich are 45 hours per week, with a possible additional 2 hours a day (170 hours per year) in the case of unforeseen emergency circumstances.

The maximum weekly and daily working hours can increase to 50 hours per week if stipulated in the employment contract or collective bargaining agreement and in accordance with the specific role requirements.

Overtime

Hours worked in excess of the standard contracted hours a week are to be paid as overtime and are regulated by the employment contract or collective bargaining agreements. In general, overtime is paid at 125% of the regular salary rate.

Working Week

Monday-Friday

Leave

Paid Time Off

Paid leave in Zurich is set in the employment contract as a minimum of 4 weeks paid holiday per year, following the completion of 1 year of employment.

For employees under the age of 20, this is increased to 5 weeks of paid annual leave.

Sick Days

All employees are entitled to paid sick leave based on the number of years of continuous employment. During the first year of employment, the employee receives up to 3 weeks of paid sick leave.

Alternatively, employers and employees may agree to opt for a daily benefits insurance scheme where employees will receive up to 80% of their last salary for a maximum of 720 days.

Maternity Leave

Pregnant employees have the right to at least 14 weeks of maternity leave if they have contributed to the Office for Social Insurance for at least 9 months preceding the due date. The maternity allowance is paid at 80% of the regular wages in the form of a daily allowance, 14 weeks paid for by the federal insurance.

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 weeks of paid leave to provide care for seriously ill or injured child.

Termination

Termination Process

The termination process is standard with notice required unless an employer can provide sufficient cause for dismissal without notice, usually due to misconduct, etc.

Notice of termination must be in writing and sent to the relevant governmental authorities.

Notice Period

In general, the notice period is stipulated within the employment contract or collective bargaining agreements. They are linked to the reason for termination and the employee’s length of service:

The statutory notice periods are as follows:

7 days’ notice during the probation period
1 months’ notice during the first year of employment
2 months’s notice during the second to the ninth year of employment
3 months’ notice from the tenth year of employment

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

Severance pay is stipulated within the employment contract or collective bargaining agreement. In addition, the statutory severance payment is only applicable to employees of at least 50 years of age who have completed at least 20 years of employment and provided there is a shortfall in pension benefits. Due to this last condition, this statutory entitlement is very rare. The severance payment due in this instance is calculated at between two and eight months’ pay.

Probation Period

The probation period is 1-3 months for indefinite employees.

Common Benefits

General

Mobile phone allowance
Work from home allowance

VISA

Any foreigner coming to work in Switzerland will need their prospective employer to contact the Office Cantonal de la Population et des Migrations (OCPM) to obtain a residence permit.

The application process to obtain a work permit differs depending on whether the applicant is a national of a European Union or European Free Trade Association (EU/EFTA) country.

The current immigration system considers the global economic interests of Switzerland as well as the integration of immigrants in Switzerland. Employers are obligated to notify vacant positions to regional placement centers for certain professions where the national unemployment rate is 5.00%.

VAT

General

VAT is 7.70% standard rate.