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Phone, internet, and coworking costs can be reimbursed when they are genuinely business-related. Charges incurred during business travel are treated as non taxable, while one‑time or recurring charges not related to business travel are taxable. For all of these, employees should provide a tax invoice or receipt showing the date, amount, the service provider or merchant name, and a short description of the purchase or service.
Employment in Switzerland
Employer costs
18.40%
Employee contribution
17.40%
Employee tax
0–43.24%
In Switzerland, there is no single nationwide minimum wage specified at the federal level. Typical employer on‑costs include social security contributions, pension, accident insurance, and family allowances, with an indicative overall employer burden of 18.40%. Employees also contribute to social security, pension, and accident insurance, with an indicative total of 17.40%. Income tax is progressive and can range from 0–43.24%, with exact rates depending on individual circumstances and location.
Onboarding time
We can help you get a new employee started in Switzerland fast. The minimum onboarding time we need is only 48 hours. Our team ensures fast, compliant employee onboarding and payroll processing. The onboarding timeline starts once the employee submits all required information via the NEO platform.
Payroll
Payroll in Switzerland includes both employer and employee contributions to social security, pension, and accident insurance, with additional family allowance costs on the employer side. The overall indicative burden is 18.40% for employers and 17.40% for employees, though some elements depend on specific plan choices and conditions.
Employee payroll contributions
| Component | Rate | Notes | |
|---|---|---|---|
| Social security contribution | Not specified | Mandatory employee contribution | |
| Pension | 9% | Conditional on pension plan rules | |
| Accident insurance | 2% | Employee‑paid accident insurance |
Employer payroll contributions
| Component | Rate | Notes |
|---|---|---|
| Social security contribution | Not specified | Mandatory employer contribution |
| Pension | 9% | Conditional on pension plan rules |
| Accident insurance | 1% | Employer‑paid accident insurance |
| Family allowances | 2% | Employer‑funded family allowance scheme |
Working hours
Standard full‑time work in Switzerland under this arrangement is based on a weekly schedule spread across Monday to Friday.
Standard working time
42 hours per week, Monday to Friday
Leave
Swiss employees under this framework receive a defined annual paid time off entitlement, while sick leave is handled separately with medical certification requirements after short absences.
Paid time off
| Policy | Accrual | Carry-over |
|---|---|---|
| Annual paid time off | 20 days per year, accrued annually | No carry-over of unused days |
Sick leave
| Policy | Medical certificate | |
|---|---|---|
| Sick leave | Required from the 4th consecutive day of sickness |
Expenses
Switzerland allows a long window for submitting business expenses, but employees are encouraged to file claims promptly so they can be processed in good time.
Submission deadlines
| Expense Type | Action Required and Deadline |
|---|---|
| Current Year's Expenses | Submit within 5 years of the expense date |
| Prior Year's Expenses | May be submitted up to 5 years from the date incurred |
Approved expenses reimbursed within the applicable limits are not taxable. If required documentation is missing, the reimbursement will be treated as taxable income.
Communication and workspace
- Phone subscription
- Internet subscription
- Coworking
Equipment and supplies
Work tools such as laptops, office equipment, office supplies, software subscriptions, and postal charges can be reimbursed on a non taxable basis when properly documented. A tax invoice or receipt must show the date, amount, merchant or service provider, and description; for laptops, office equipment, software subscriptions, and training‑type items, the document should also include the employee’s name and the VAT amount.
- Laptop
- Office equipment
- Office supplies
- Software subscription
- Postal charges
Travel
A wide range of travel‑related expenses can be reimbursed tax‑free when they are business‑related and supported by appropriate documentation. For most items, a tax invoice or receipt (and, where relevant, a booking confirmation) must show the date, amount, merchant or service provider, description of the service, and in many cases the employee’s name and VAT amount. Mileage can be reimbursed on a non taxable basis at CHF 0.75 per kilometer when supported by a mileage calculator record.
- Business travel insurance
- Visa fee
- Accommodation
- Flight
- Taxi or rideshare
- Train
- Public transport
- Car rental
- Fuel
- Mileage
- Parking or toll fees
Meals and entertainment
Everyday meals, groceries, and business meals with clients or partners can be reimbursed on a non taxable basis when they are business‑related. Employees should submit a tax invoice or receipt that shows the date, amount, merchant name, and a brief description of the purchase or service.
- Breakfast, lunch and dinner
- Groceries
- Meal with client or partner
Other expenses
Certain professional development and promotional costs can also be reimbursed tax‑free. For training, courses, books, and promotional items, employees should provide a tax invoice or receipt that includes the date, amount, merchant or service provider, description, employee name, and VAT amount.
- Training, courses, and books
- Promotional items
Per diem
In Switzerland, employers do not usually provide per diem allowances; expenses are typically reimbursed based on actual documented costs.
Allowances
In Switzerland, employers can offer a mix of statutory and discretionary allowances. Clients may request a gross‑up when approving allowances so that the employee receives a net amount while the employer covers any related taxes and social security contributions.
Allowances overview
| Type | Status | Taxation | Limitations |
|---|---|---|---|
| Work from home allowance | Statutory | Non taxable | CHF 150 per month, prorated by days worked; must be in the employment agreement and offered to all employees in Switzerland |
| Gym membership | Optional | Taxable | May be offered to one or more employees at the employer's discretion |
| Medical insurance | Optional | Taxable | May be offered to one or more employees at the employer's discretion |
| Life insurance | Optional | Taxable | May be offered to one or more employees at the employer's discretion |
| Wellness | Optional | Taxable | May be offered to one or more employees at the employer's discretion |
| Medical cost | Optional | Taxable | May be offered to one or more employees at the employer's discretion |
| Relocation | Optional | Taxable | May be offered to one or more employees at the employer's discretion |
| Utilities | Optional | Taxable | May be offered to one or more employees at the employer's discretion |
Termination
Swiss employment contracts typically include both a probation period and a notice period, with minimum standards that employers must respect.
Notice and probation
| Policy | Minimum / Maximum | |
|---|---|---|
| Notice period after probation | Minimum 7 days' notice | |
| Probation period | Up to 90 days; no minimum specified |
