Countries
Pay in Switzerland
Pay employees in Switzerland
Administrating timely, accurate and compliant payroll in Switzerland requires a deep understanding of local tax, reporting, employment and compensation requirements. With our payroll solutions, you can count on in-country expertise and support to help ensure your workers in Switzerland are paid correctly, compliantly and on time - every time.
Taxes, employee compensation and benefits
Our local experts provide up-to-date guidance on the specific tax legislation, compensation requirements and benefits expectations for processing payroll in Switzerland.
- Corporate, income and regional taxes
- Social taxes, including pensions, healthcare and unemployment
- Compensation for holidays, vacation and various types of leave
- Other withholdings and employer contributions
We administer payroll in various ways:
- EOR, our employer of record solution that allows you to employ and pay international workers even if you don’t have a local entity
- Global Pay, our local payroll solution for your operations in a specific country
Taxes for payroll in Switzerland
Corporate tax
The federal corporate income tax rate in Switzerland is 8.5%. In addition to the federal tax, each canton has its own corporate tax law and rate. In general, businesses should expect to pay between 11.9% and 21.0% on corporate income tax.
Federal income tax
Federal income tax rates are levied on a progressive scale. Portions of an individual’s income are allocated to the country’s personal income tax brackets, with each taxed at the applicable rate.
Brackets for single taxpayers without minor children are:
Brackets for married taxpayers and single taxpayers with minor children are:
Employers are only required to withhold income tax on foreign workers (non-permanent residents). All other employees in Switzerland are required to file and pay their taxes annually, and employers are required to file annual salary certificates with the government.
Jurisdictional income tax
Each of the 26 cantons in Switzerland, as well as the municipalities within the cantons, have their own income tax, with rates varying from a progressive scale to a flat tax. Some cantons also have a church income tax and/or an additional personal tax.
Social taxes
Social tax contributions are divided between the employer and employee, and employers are required to withhold and remit the employees’ share. Employer rates for social taxes range from 13.845% to 41.505%, and employee rates range from 14.375% to 28.375%. Effective for 2023, total social tax rates for employers generally range from 14.21% to 41.4% and from 14.4% to 28.7% for employees.
Social taxes in Switzerland cover benefits including old age, survivors’ and disability; family compensation and maternity; occupational and non-occupational accident insurance; and unemployment.
Updated: 27.09.2023
Employee compensation and benefits in Switzerland
In Switzerland, employment is governed by the Labor Act and Code of Obligations, with each statute regulating various labor conditions and standards.
When processing payroll in Switzerland, you’ll need to consider the following employment requirements:
Partner with Safeguard Global for your payroll in Switzerland
Hundreds of organizations depend on our global payroll experts to ensure their payroll processing is accurate and compliant with local tax and employment requirements.
We support payroll in Switzerland in various ways: through our employer of record solution, as a local payroll provider for your Swiss operations, and as part of a managed provider solution for your global organization.
As an employer of record in Switzerland, we handle payroll for your Swiss workers, ensuring accuracy and compliance, while you manage their day-to-day contributions.
As a local provider of payroll in Switzerland, we can help your Swiss operations:
- Comply with Swiss labor laws and regulations
- Deduct the appropriate tax and social security withholdings
- Ensure your employees in Switzerland are paid accurately and on time
As a global payroll provider, we offer streamlined processing across countries, currencies, languages and time zones— to help companies gain global visibility to pay data and make smarter workforce decisions.
Whether you need payroll support in Switzerland through an employer of record, a local provider or as part of a comprehensive global payroll system, contact us to let our experts find the right solution for you.
Disclaimer
The information provided on or through this website is for informational purposes only and does not constitute legal advice. Safeguard Global expressly disclaims any liability with respect to warranty or representation concerning the information contained herein, including the lost essence, interpretation, accuracy and/or completeness of the information in transit and language translation.