Switzerland PEO & EOR Services
Switzerland offers a diverse range of employment opportunities, attracting both domestic and international talent to contribute to its thriving workforce.
Employment Termination and Notice Period in Switzerland
In Switzerland, an employer can terminate a contract for any reason as long as it is not discriminatory or abusive.
However, termination is restricted or forbidden when an employee is unsuitable for work due to an accident or illness for a limited length of time growing with seniority (30 to 180 days), pregnant or in military duty, and within the first 16 weeks after giving birth.
The dismissal must be explained when the other party demands it. The following are the statutory notice periods:
- 7 days during the trial period
- 1 month during the 1st year of service
- 2 months during the 2nd to the 9th year of service
- 3 months from the 10th year of service
Alternatively, the parties can contractually agree on a notice period. A fixed-term employment contract terminates when the agreed-upon duration expires.
Average salary, average employer costs and working hours in Switzerland
In 2024, the average salary in Switzerland was $89,268. This is higher than the average annual salary in the United States, which is $59,384. As an employer, the actual employer costs are approximately 9.463% higher than the gross annual salary in Geneva and 8.07% to 23.40% higher in Zurich. Based on an annual salary of $89,268, employment costs would be from $97,715.43 in Geneva and $97,034.32 in Zurich.
See all average salaries in Europe in 2024
Working hours in Switzerland vary depending on the company, the employee's position, and the sector. Under Swiss employment law, normal working hours should be a maximum of 45 hours per week. Employees in industry work around 40 hours per week, while workers in the service sector, such as banking, generally work slightly longer hours (around 42 per week).
Overtime labor is paid at a rate of 125 percent of regular pay, or time off is offered in place of payment.
Paid vacation leave and public holidays in Switzerland
In Switzerland, paid leave is defined as a minimum of four weeks of paid vacation every year following the completion of one year of employment. This is expanded to 5 weeks of paid annual leave for employees under the age of 20.
Aside from the usual national holidays, each canton and area in Switzerland has its own set of holidays and events. The most important public holidays, when most Swiss employees have the day off, are listed below. If a public holiday falls on a non-working day, such as a Saturday or Sunday, employees cannot redeem the holiday time during the week. A public holiday that falls during an employee's vacation, on the other hand, does not count as a vacation day.
- New Year's Day - 1 January
- Good Friday- 29 March
- Easter Monday - 1 April
- Labour Day - 1 May
- Ascension Day - 9 May
- Whit Monday - 20 May
- Corpus Christi - 30 May
- Swiss National Holiday - 1 August
- Assumption Day - 15 August
- Christmas Eve - 24 December
- Christmas Day - 25 December
- St. Stephen's Day - 26 December
- New Year's Eve - 31 December
Social Security Tax for Employers in Switzerland
In Switzerland, both the employer and the employee pay social security contributions. On average, employers have to pay 9.5% social contribution to the local authorities.
The employer is responsible for all social security taxes except for medical insurance. For self-employed individuals, they must cover both the employer's and employee's costs, with varying contribution rates that may apply.
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To learn more about the Social Security Tax in Europe we invite you to read this article on Social security tax rates for Employers across Europe.
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Monique Ramondt-Sanders
CCO & VP of HR Outsourcing