Complete Checklist for Hiring Employees in Switzerland

Hiring an employee in Switzerland requires compliance with several legal and administrative obligations. This checklist guides you step by step to ensure nothing is overlooked.

Employment Contract

An employment contract can be concluded orally, in writing, or tacitly. To avoid any ambiguity, it is strongly recommended to use the written form. The employee may also request a written contract at any time.

The contract must include at least:

• Employer and employee details
• Job description, tasks, and responsibilities
• Start date and contract duration
• Gross salary, deductions, 13th-month salary, allowances
• Employment rate and working hours (overtime, night shifts)
• Termination notice periods (according to Swiss Code of Obligations, art. 335a and following)
• Holidays, public holidays, leave, and training rights

If the company is subject to a collective labor agreement (CBA), its provisions are mandatory. For hiring a minor, written authorization from parents or a legal guardian is required.

quitt Business prepares employment contracts, company regulations, and expense reimbursement policies for you.

Click here for the standard employment contract
FAQ on private employment law (in German)
Further information on collective agreements (in German)

‍Registration with the Social Security Compensation Office

All employees working in Switzerland must be registered with the social security system (AHV/AVS, IV/AI, and EO/APG). The obligation to contribute begins on January 1st following the employee’s 17th birthday and ends when employment ceases.

Employers must register each employee with the relevant cantonal or professional compensation office. These offices also manage family allowance funds. Contributions to AHV/IV/EO and unemployment insurance (ALV/AC) are shared equally between employer and employee.

quitt Business handles all registrations and declarations with the compensation office on your behalf.

Further information on contributions to AHV, IV, EO, ALV

‍Pension and Mandatory Insurances

In Switzerland, employers are required to cover their employees with several insurances:

• Occupational Pension (BVG/LPP): mandatory for salaries subject to AHV contributions above CHF 22,680/year (as of 2025).
• Accident Insurance (UVG/LAA): compulsory for all employees. Those working more than 8 hours per week are also covered for non-occupational accidents.
• Daily Sickness Allowance Insurance (KTG/IJM): optional but strongly recommended, as it ensures continued salary payment during illness.
• Supplementary Accident Insurance (UVGZ/LAAC): optional, providing additional coverage.

quitt Business takes care of pension fund affiliation, insurance policies, and claims management.

More information on quitt Business insurances

‍More information on the obligation to join a pension fund (in German)
More information on compulsory accident insurance (in German)
More information on continued payment of wages in case of illness (in German)

‍Work Permits and Notifications for Foreign Nationals

Hiring foreign workers in Switzerland may require a notification or work permit:

• EU/EFTA – less than 90 days/year: notification required, except in certain industries (construction, hospitality, cleaning, security, etc.) where a permit is mandatory even below 90 days.
• EU/EFTA – more than 90 days/year: work permit required.
• Non-EU/EFTA nationals: work permit always required.

‍(quitt Business does not handle immigration notifications or permits.)

More information on employers’ obligation for notification and authorization under the law relating to aliens (in German)

Withholding Tax

Withholding tax is deducted directly from the employee’s salary by the employer and paid to the competent tax authority. The employer must declare the employment of persons subject to withholding tax within 8 days of starting work.

quitt Business manages all declarations and calculations related to withholding tax for you.

More information on cases and requirements for source tax liability (in German)

Family Allowances

Employees with children may be entitled to family allowances. The employer must submit the application to the relevant family allowance fund, usually linked to the AHV/AVS compensation office.

quitt Business handles the application and payment of family allowances for you.

More information on family allowances

Salary Payment

Employers must pay employees the agreed, customary, or CBA/CTT-regulated salary. There is no federal minimum wage in Switzerland, although some cantons and CBAs may set one.

In practice:

• Most contracts provide for an hourly or monthly salary.
• Monthly salaries include public holidays and rest days, meaning the amount remains constant.
• Unless otherwise agreed, salaries must be paid no later than the end of the month.
• A clear written payslip (gross salary, deductions, net salary) must accompany each payment.
• It is recommended to also indicate remaining vacation and overtime balances.
• The employer is responsible for deducting employee contributions to social security.

quitt Business calculates, processes, and pays salaries on your behalf.

Annual Declaration to the Compensation Office

Employers must submit the annual salary declaration to the compensation office by January 30 of the following year. This ensures employee contributions are correctly recorded in their AHV/AVS individual accounts.

quitt Business manages correspondence and the annual declaration with the compensation office for you.

Salary Certificate

At the end of each year, employers must issue a salary certificate to their employees. This document is essential for tax declarations.

quitt Business automatically generates salary certificates, accessible to both employers and employees.

More information on the salary certificate

Conclusion

Hiring employees in Switzerland involves much more than signing a contract: it requires handling insurances, social security contributions, taxes, allowances, and other legal obligations.

With quitt Business, you save time and ensure compliance: we take care of all these processes for you.