Hiring Your First Employee in Switzerland: Costs and Obligations

Contracts, social insurance registration, payroll and the real cost on top of gross salary.

6 min read ยท Business & Freelance

Hiring is a big step. Plan the full cost and the paperwork before you sign.

The contract

An employment contract can be oral, but a written one avoids disputes. Define salary, hours, vacation (at least four weeks), notice periods and any probation period (normally one month).

  • Gross yearly salaryCHF 90โ€™000 ยท 86 %
  • Employer social costsCHF 14โ€™760 ยท 14 %

Example with default values. Open the calculator โ†’

Register and insure

The real cost

Add employer social charges, which are often 15โ€“20 % on top of gross salary, plus training, equipment, recruitment and management time. Do not forget the 13th salary if agreed.

Payroll

Run payroll monthly, deduct the employee's share, pay contributions and issue a salary certificate at year-end. Payroll software or a fiduciary can help.

Test affordability

Use the employer cost calculator to see the full yearly cost.

Try the calculators

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