Hiring in Switzerland
Hiring employees in Switzerland, explained.
Thinking about opening your company in Switzerland? This page explains what you take on as a Swiss employer: the registrations, the real costs and the timelines. And if you would rather hand the whole thing over, that is exactly what we do.
Figures updated for 2026. General information, not legal or tax advice.
The setup
Six registrations before the first salary.
Join an AHV compensation fund
Every Swiss employer registers with a compensation fund, which covers the state pension (AHV), disability (IV), income compensation (EO) and unemployment insurance (ALV).
Take out accident insurance (UVG)
Mandatory for every employee, covering occupational accidents. Employees working 8 hours or more per week are also covered for non-occupational accidents.
Join an occupational pension fund (BVG)
Mandatory once an employee earns more than CHF 22,680 per year (2026). New employers affiliate with a pension fund; we prepare the comparison.
Register for family allowances (FAK)
A cantonal scheme, usually handled through the same compensation fund. Rates differ by canton.
Arrange daily sickness benefits insurance (KTG)
Not required by law but customary in Switzerland and expected by employees; often prescribed by collective agreements.
Register for withholding tax
If you employ people without a permanent residence permit, you register with the cantonal tax authority and settle the tax monthly. The registration deadline is short, typically 8 days after the employment starts.
The real numbers
What an employee costs on top of gross salary.
Swiss employers pay statutory contributions of roughly 15 to 22 percent on top of gross salary. These are the 2026 employer rates.
| Contribution | Employer rate | Notes |
|---|---|---|
| AHV/IV/EO (state pension, disability, income compensation) | 5.3% | Employer share; the employee pays the same on top |
| ALV (unemployment insurance) | 1.1% | Employer share, on salaries up to CHF 148,200 |
| BVG (occupational pension) | 9 to 14% | Age-dependent, calculated on the insured salary; the employer pays at least 50% of the total contributions |
| UVG (accident insurance) | 0.1 to 2% | Occupational accidents, rate depends on industry risk |
| FAK (family allowances) | 1 to 2.75% | Employer only, rate set by canton |
Daily sickness benefits insurance (KTG) is customary on top. Rates for pension and accident insurance depend on your team and industry; we calculate the exact employer cost per role before you hire.
Our offer
The Swiss Market Entry HR Package.
One package that makes your Swiss entity a fully registered, payroll-ready employer. Fixed fee, quoted in writing before we start.
What is included
- Registration with an AHV compensation fund, accident insurer, pension fund and family allowance scheme
- Cantonal withholding tax registration for your foreign employees
- English-language employment contract templates under Swiss law
- Payroll setup on swissdec-certified software and your first payroll run
- A clear explanation of your duties as a Swiss employer, in plain English
- Coordination with notaries and fiduciary partners for incorporation, accounting and permits
CHF 4,900 one-off setup
Ongoing payroll and HR support afterwards from CHF 350 per employee per month. Both figures are our service fees and exclude VAT; statutory employer contributions (roughly 15 to 22 percent of gross salary) and the incorporation itself are separate. You receive a written offer confirming the fixed fee before we start.
Good to know
The package is designed for companies that run, or are setting up, their own Swiss entity. Incorporation itself runs through notaries and fiduciary partners; we coordinate the HR side end to end so everything is ready when your first employee starts.
Languages
We work in English, German, French, Italian and Turkish. Russian is available on request.
Where our clients come from
Expanding to Switzerland from…
Common questions
What foreign companies ask us first.
Do we need our own Swiss company to hire in Switzerland?
There are two established routes. An employer-of-record platform employs people on your behalf without you owning a Swiss entity, which suits a quick market test. Companies that want to build a real presence set up their own AG or GmbH; from roughly 10 to 15 employees this is usually the more economical route, and it means your people work for your own brand. We support companies on the own-entity route.
How much does an employee really cost on top of gross salary?
Plan for roughly 15 to 22 percent of gross salary in statutory employer contributions, depending on age structure and industry: state pension, unemployment insurance, occupational pension, accident insurance and family allowances. We show you the exact figures per role before you hire.
What is withholding tax (Quellensteuer)?
Foreign employees without a permanent residence permit are taxed directly at source: the employer deducts the tax from the monthly salary and pays it to the canton. Rates depend on canton, income and family situation. Employees earning over CHF 120,000 per year are additionally assessed through the ordinary tax process.
Do our employees need work permits?
Citizens of EU and EFTA countries benefit from free movement: up to 90 working days per year a simple online notification is enough, and longer employment requires a permit that is granted as a matter of course. Citizens of other countries need a permit from a limited yearly quota (2026: 4,500 B and 4,000 L permits nationwide, plus a separate UK quota of 2,100 B and 1,400 L). Planning ahead matters; we coordinate with specialised immigration partners.
What does the incorporation itself cost?
A GmbH requires CHF 20,000 in share capital, an AG CHF 100,000 with at least CHF 50,000 paid in. Incorporation runs through a notary and the commercial register and typically takes around three weeks. Every Swiss company also needs at least one signatory resident in Switzerland. Incorporation is handled by notaries and fiduciary partners; we coordinate the HR side alongside it.
What does the Swiss Market Entry HR Package cost?
The setup is a fixed CHF 4,900: all employer registrations, the withholding tax registration, English employment contract templates under Swiss law, payroll setup and your first payroll run. Ongoing payroll and HR support afterwards starts at CHF 350 per employee per month. Both figures exclude VAT and statutory employer contributions, and you receive the fixed fee in writing before we start.
Which languages do you work in?
We work in English, German, French, Italian and Turkish. Russian is available on request. Official correspondence with Swiss authorities is handled by us in German.
Tell us about your Swiss plans.
20 minutes in English, free of charge and without obligation.
Book an intro call