Individual income is taxed progressively based on the following tax brackets which apply on the federal level and to married taxpayers:
– up to CHF 30,799: 0%
– CHF 30,799 to CHF 50,900: 1%
– CHF 50,900 to CHF 58,400: CHF 226 + 2%
– CHF 58,400 to CHF 75,300: CHF 376 +3%
– CHF 75,300 to CHF 90,300: CHF 883 + 4%
– CHF 90,300 to CHF 103,400: CHF 1,483 + 5%
– CHF 103,400 to CHF 114,700: CHF 2,138 + 6%
– CHF 114,700 to CHF 124,200: CHF 2,816 + 7%
– CHF 124,200 to CHF 131,700: CHF 3,481 + 8%
– CHF 131,700 to CHF 137,300: CHF 4,081 + 9%
– CHF 137,300 to CHF 141,200: CHF 4,585 + 10%
– CHF 141,200 to CHF 143,100:CHF 4,975 + 11%
– CHF 143,100 to CHF 145,000: CHF 5,184 + 12%
– CHF 145,000 to CHF 895,900:CHF 5,412 + 13%
– over CHF 895,900: CHF 103,028.50 + 11.5%
Employees in Switzerland must receive at least four weeks of paid annual leave – five weeks for those aged under 20. However, there are many collective bargaining agreements which provide for more annual leave.
In addition, Switzerland observes five public holidays on the national level on which employees are not required to work. As many public holidays are subject to cantonal regulations, the total number of public holidays may be as high as 15.
Maternity Leave and Paternity Leave
Statutory maternity leave in Switzerland is 98 days, i.e. 14 weeks. However, cantonal law or collective agreements may provide for a longer maternity leave period – for example 16 weeks in Geneva. During this time, the employee receives maternity benefits amounting to 80% of her normal salary – capped at CHF 196 per day.
Since September 2020, fathers in Switzerland can take two weeks of paid paternity leave within the first six months after their child’s birth. Paternity benefits are equal to maternity benefits.
Swiss labour law does not provide for any further parental leave.
Additional Leave and Benefits
In addition to the leave entitlements mentioned above, employees in Switzerland can request time off work under the following circumstances:
- paid care leave (new as of January 2021): up to ten days per year – each time limited to three days – which can be claimed whenever a family member needs urgent care
- care leave for seriously ill children (introduced in July 2021): up to 14 weeks of paid leave – remuneration rate is 80% of normal salary
- youth leave: up to five days for employees under 30 for volunteer work involving youths
- marriage leave
- bereavement leave
In addition to employment termination by default – i.e. in case of a fixed-term contract – resignation and mutual agreement, employees may be dismissed due to one of the following reasons (non-exhaustive list):
- staff reduction or other business-related reasons for redundancy
- breach of employment contract
- summary dismissal due to gross misconduct
- employee’s underperformance
- employee’s long-term illness
When terminating an employment contract, employees and employers have to respect the following statutory notice periods:
- seven days – during the probation period
- one month – during the first year of service
- two months – from the second to the ninth year of service
- three months – from the ninth year of service onwards
In certain cases, however, an immediate termination of the employment contract is possible – e.g. in case of a severe breach of the employment contract by either one of the parties. Severance pay is not required under Swiss labour law but may be mandatory under a collective agreement.
Hiring in Switzerland?
Not sure if you should start with a contractor or go ahead and hire a full-time teammate in Switzerland? The Lano platform makes it easy to go from freelance to full-time employee. Get expert guidance from the Lano team to compare your options and keep growing.