Payroll in Switzerland
Because taxes in Switzerland are levied at the federal, cantonal and municipal levels, each with their own rates, payroll administration and reporting can be more complicated than in many other countries. In order to ensure accurate and compliant payroll in Switzerland, you’ll need a firm understanding of the country’s highly nuanced tax and labor requirements.
The Swiss franc is the official currency of Switzerland.
Employees must be paid at the end of each month, or according to terms in the employment contract or collective labor agreement. Employers are required to provide a monthly individual earnings statement detailing employee salary and deductions.
Taxes for payroll in Switzerland
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 21.6% 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:
|Annual income (Swiss francs)||Income tax rate|
|Up to CHF 14,500||0|
|More than CHF 14,500 to CHF 31,600||0.77% on the amount over CHF 14,500|
|More than CHF 31,600 to CHF 41,400||CHF 131.65, plus 0.88% of the amount over CHF 31,600|
|More than CHF 41,400 to CHF 55,200||CHF 217.90, plus 2.64% of the amount over CHF 41,400|
|More than CHF 55,200 to CHF 72,500||CHF 582.20, plus 2.97% of the amount over CHF 72,500|
|More than CHF 72,500 to CHF 78,100||CHF 1,096, plus 5.94% of the amount over CHF 72,500|
|More than CHF 78,100 to CHF 103,600||CHF 1,428.60, plus 6.6% of the amount over CHF 78,100|
|More than CHF 103,600 to CHF 134,600||CHF 3,111.60, plus 8.8% of the amount over CHF 103,600|
|More than CHF 134,600 to CHF 176,000||CHF 5,839.60, plus 11% of the amount over CHF 134,600|
|More than CHF 176,000 to CHF 755,200||CHF 10,393.60, plus 13.2% of the amount over CHF 176,000|
|More than CHF 755,200||CHF 86,848, plus 11.5% of the amount over CHF 755,200|
Brackets for married taxpayers and single taxpayers with minor children are:
|Annual income (Swiss francs)||Income tax rate|
|Up to CHF 28,300||0|
|More than CHF 28,300 to CHF 50,900||1% on the amount over CHF 28,300|
|More than CHF 50,900 to CHF 58,400||CHF 226, plus 2% of the amount over CHF 50,900|
|More than CHF 58,400 to CHF 75,300||CHF 376, plus 3% of the amount over CHF 58,400|
|More than CHF 75,300 to CHF 90,300||CHF 883, plus 4% of the amount over CHF 75,300|
|More than CHF 90,300 to CHF 103,400||CHF 1,483, plus 5% of the amount over CHF 103,400|
|More than CHF 103,400 to CHF 114,700||CHF 2,138, plus 6% of the amount over CHF 103,400|
|More than CHF 114,700 to CHF 124,200||CHF 2,816, plus 7% of the amount over CHF 114,700|
|More than CHF 124,200 to CHF 131,700||CHF 3,481, plus 8% of the amount over CHF 124,200|
|More than CHF 131,700 to CHF 137,300||CHF 4,081 plus 9% of the amount over CHF 131,700|
|More than CHF 137,300 to CHF 141,200||CHF 4,585, plus 10% of the amount over CHF 137,300|
|More than CHF 141,200 to CHF 143,100||CHF 4,975, plus 11% of the amount over CHF 141,200|
|More than CHF 143,100 to CHF 145,000||CHF 5,184, plus 12% of the amount over CHF 131,700|
|More than CHF 145,000 to CHF 895,800||CHF 5,412, plus 13% of the amount over CHF 145,000|
|More than CHF 895,800||CHF 103,016, plus 11.5% of the amount over CHF 895,800|
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 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%.
Social taxes in Switzerland cover benefits including old age, survivors’ and disability; family compensation and maternity; occupational and non-occupational accident insurance; and unemployment.
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 Managed Payroll provider, we offer centralized multinational payroll in over 150 countries—with 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.
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.
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