Pay employees in Switzerland

Administrating timely, accurate and compliant payroll in Switzerland requires a deep understanding of local tax, reporting, employment and compensation requirements. With our payroll solutions, you can count on in-country expertise and support to help ensure your workers in Switzerland are paid correctly, compliantly and on time - every time.
Taxes, employee compensation and benefits
Our local experts provide up-to-date guidance on the specific tax legislation, compensation requirements and benefits expectations for processing payroll in Switzerland.
  • Corporate, income and regional taxes
  • Social taxes, including pensions, healthcare and unemployment
  • Compensation for holidays, vacation and various types of leave
  • Other withholdings and employer contributions
We administer payroll in various ways:
  • EOR, our employer of record solution that allows you to employ and pay international workers even if you don’t have a local entity
  • Global Pay, our local payroll solution for your operations in a specific country
Have specific questions about payroll in Switzerland? Request a call with a global payroll expert today.

Taxes for payroll in Switzerland

Corporate tax
The federal corporate income tax rate in Switzerland is 8.5%. In addition to the federal tax, each canton has its own corporate tax law and rate. In general, businesses should expect to pay between 11.9% and 21.0% on corporate income tax.
Federal income tax
Federal income tax rates are levied on a progressive scale. Portions of an individual’s income are allocated to the country’s personal income tax brackets, with each taxed at the applicable rate.
Brackets for single taxpayers without minor children are:
Annual income (Swiss francs)Income tax rate
Up to CHF 14,500
0
More than CHF 14,500 to CHF 31,600
0.77% on the amount over CHF 14,500
More than CHF 31,600 to CHF 41,400
CHF 131.65, plus 0.88% of the amount over CHF 31,600
More than CHF 41,400 to CHF 55,200
CHF 217.90, plus 2.64% of the amount over CHF 41,400
More than CHF 55,200 to CHF 72,500
CHF 582.20, plus 2.97% of the amount over CHF 72,500
More than CHF 72,500 to CHF 78,100
CHF 1,096, plus 5.94% of the amount over CHF 72,500
More than CHF 78,100 to CHF 103,600
CHF 1,428.60, plus 6.6% of the amount over CHF 78,100
More than CHF 103,600 to CHF 134,600
CHF 3,111.60, plus 8.8% of the amount over CHF 103,600
More than CHF 134,600 to CHF 176,000
CHF 5,839.60, plus 11% of the amount over CHF 134,600
More than CHF 176,000 to CHF 755,200
CHF 10,393.60, plus 13.2% of the amount over CHF 176,000
More than CHF 755,200
CHF 86,848, plus 11.5% of the amount over CHF 755,200
Brackets for married taxpayers and single taxpayers with minor children are:
Annual income (Swiss francs)Income tax rate
Up to CHF 28,300
0
More than CHF 28,300 to CHF 50,900
1% on the amount over CHF 28,300
More than CHF 50,900 to CHF 58,400
CHF 226, plus 2% of the amount over CHF 50,900
More than CHF 58,400 to CHF 75,300
CHF 376, plus 3% of the amount over CHF 58,400
More than CHF 75,300 to CHF 90,300
CHF 883, plus 4% of the amount over CHF 75,300
More than CHF 90,300 to CHF 103,400
CHF 1,483, plus 5% of the amount over CHF 103,400
More than CHF 103,400 to CHF 114,700
CHF 2,138, plus 6% of the amount over CHF 103,400
More than CHF 114,700 to CHF 124,200
CHF 2,816, plus 7% of the amount over CHF 114,700
More than CHF 124,200 to CHF 131,700
CHF 3,481, plus 8% of the amount over CHF 124,200
More than CHF 131,700 to CHF 137,300
CHF 4,081 plus 9% of the amount over CHF 131,700
More than CHF 137,300 to CHF 141,200
CHF 4,585, plus 10% of the amount over CHF 137,300
More than CHF 141,200 to CHF 143,100
CHF 4,975, plus 11% of the amount over CHF 141,200
More than CHF 143,100 to CHF 145,000
CHF 5,184, plus 12% of the amount over CHF 131,700
More than CHF 145,000 to CHF 895,800
CHF 5,412, plus 13% of the amount over CHF 145,000
More than CHF 895,800
CHF 103,016, plus 11.5% of the amount over CHF 895,800
Employers are only required to withhold income tax on foreign workers (non-permanent residents). All other employees in Switzerland are required to file and pay their taxes annually, and employers are required to file annual salary certificates with the government.
Jurisdictional income tax
Each of the 26 cantons in Switzerland, as well as the municipalities within the cantons, have their own income tax, with rates varying from a progressive scale to a flat tax. Some cantons also have a church income tax and/or an additional personal tax.
Social taxes
Social tax contributions are divided between the employer and employee, and employers are required to withhold and remit the employees’ share. Employer rates for social taxes range from 13.845% to 41.505%, and employee rates range from 14.375% to 28.375%. Effective for 2023, total social tax rates for employers generally range from 14.21% to 41.4% and from 14.4% to 28.7% for employees. 
Social taxes in Switzerland cover benefits including old age, survivors’ and disability; family compensation and maternity; occupational and non-occupational accident insurance; and unemployment.
Updated: 27.09.2023
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Employee compensation and benefits in Switzerland

In Switzerland, employment is governed by the Labor Act and Code of Obligations, with each statute regulating various labor conditions and standards.
When processing payroll in Switzerland, you’ll need to consider the following employment requirements:

Partner with Safeguard Global for your payroll in Switzerland

Hundreds of organizations depend on our global payroll experts to ensure their payroll processing is accurate and compliant with local tax and employment requirements.
We support payroll in Switzerland in various ways: through our employer of record solution, as a local payroll provider for your Swiss operations, and as part of a managed provider solution for your global organization.
As an employer of record in Switzerland, we handle payroll for your Swiss workers, ensuring accuracy and compliance, while you manage their day-to-day contributions.
As a local provider of payroll in Switzerland, we can help your Swiss operations:
  • Comply with Swiss labor laws and regulations
  • Deduct the appropriate tax and social security withholdings
  • Ensure your employees in Switzerland are paid accurately and on time
As a global payroll provider, we offer streamlined processing across countries, currencies, languages and time zones— to help companies gain global visibility to pay data and make smarter workforce decisions.
Whether you need payroll support in Switzerland through an employer of record, a local provider or as part of a comprehensive global payroll system, contact us to let our experts find the right solution for you.

Disclaimer

The information provided on or through this website is for informational purposes only and does not constitute legal advice. Safeguard Global expressly disclaims any liability with respect to warranty or representation concerning the information contained herein, including the lost essence, interpretation, accuracy and/or completeness of the information in transit and language translation.
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