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Country Guide

Employer of Record in Switzerland (EOR in Switzerland)

Last updated: July 5, 2025
switzerland - Employer of Record in Switzerland (EOR in Switzerland)

Capital City

Bern

Languages

German, French, Italian, Romansh

Currency

Swiss Franc (CHF)

Population Size

Approx. 8.9 million

Employer Taxes

Around 12% – 15%

Employee Costs

12%–15%

Payroll Frequency

Monthly
Public Holidays Calendar

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Switzerland, known for its robust economy and strategic position in the heart of Europe, offers unparalleled opportunities for businesses looking to expand internationally. However, entering the Swiss market involves navigating a complex network of labor laws and tax regulations. An Employer of Record (EOR) in Switzerland can streamline this process, acting as your local partner to ensure a smooth market entry and ongoing compliance with all essential legal requirements

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Choosing Between an EOR and Company Incorporation in Switzerland

While establishing a subsidiary in Switzerland is a viable option, choosing an EOR offers distinct advantages:

  • Speed – Partnering with an EOR like INS Global allows for a quicker setup process in Switzerland, enabling swift staff recruitment and business initiation. In contrast, establishing a local subsidiary can take several months, while an EOR can have your team operational within weeks or even days.
  • Compliance – Both EORs and subsidiaries must adhere to Swiss tax laws and labor regulations. However, EORs bring specialized local knowledge to navigate these requirements efficiently, ensuring your business stays compliant without the need for in-house expertise.
  • Cost – For smaller teams or short-term projects, EOR services in Switzerland are generally more cost-effective than setting up a subsidiary. They help you avoid significant incorporation costs and ongoing administrative expenses. Larger organizations also benefit from the EOR’s ability to integrate seamlessly with global payroll systems.
  • Control – While setting up a subsidiary provides full control over HR, finances, and operations, EORs offer similar levels of oversight with the added advantage of reducing administrative burdens and associated liabilities.

PEO/EOR vs Company Incorporation

The Advantage in Figures

PEO/EOR

Company Incorporation

Price

80% Less Expensive

Market Entry

2-5 Days

6 Months

Employee Turnover
Decrease by 14%
Recommendation
98% of the Current PEO Clients
Administrative Fees
Saves an Average of $450
Costly Payroll and Compliance Fines
Help Avoid
Company Growth Rate
7 – 9%
ROI
27%
Closed During Pandemic
-58%
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The Advantages of a Swiss EOR On Your Business

icon EOR

Hassle-Free Market Entry

An EOR in Switzerland streamlines your entry into the market by managing intricate tax systems and labor laws, ensuring your compliance from day one.

icon EOR

Expert Compliance Management

Switzerland’s regulatory environment can be challenging, but EORs possess the expertise to keep your business in full alignment with local tax laws, labor regulations, and social security obligations.

icon EOR

Risk Mitigation and Legal Protection

As your legal employer in Switzerland, an EOR minimizes the risks associated with employment regulations, ensuring that your business remains fully compliant and protected from potential liabilities.

icon EOR

Concentration on Core Business Strategies

By outsourcing HR functions such as recruitment, payroll processing, and tax management to an EOR, you can focus on driving your core business activities and achieving strategic growth.

icon EOR

Cost-Efficient Operational Strategy

EOR services in Switzerland provide a cost-effective alternative to establishing a local subsidiary, particularly for smaller teams or temporary ventures, helping you avoid the significant costs of incorporation and ongoing administrative burdens.

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5 Essential Factors for Selecting the Best Employer of Record in Switzerland

Choosing the right EOR in Switzerland is crucial for successful business expansion. Keep these 5 key factors in mind:

1

Established Reputation and Experience – Look for an EOR in Switzerland with a well-established reputation and a proven track record, such as INS Global. Positive client reviews and industry awards can indicate their reliability and expertise.

2

Comprehensive Services – Ensure the EOR in Switzerland offers a full range of services or can tailor their offerings to meet your specific needs. This could include visa and work permit assistance, payroll management, tax compliance, and navigating Switzerland’s intricate tax and labor laws.

3

Adaptability and Growth Support – Select an EOR in Switzerland that can scale its services in line with your business growth. They should be equipped to manage an expanding workforce and adapt to evolving business demands.

4

Effective Communication and Transparency – Choose an EOR in Switzerland known for clear and consistent communication. They should keep you updated on regulatory changes, deadlines, and any potential issues. A dedicated point of contact and accessible online tools are essential for easy access to critical information.

5

Clear and Competitive Pricing – Evaluate the pricing models of different EOR providers in Switzerland. Ensure their fees are transparent, competitive, and free from hidden charges. Consulting independent reviews can help you secure the best value for your investment.

The Differences Between PEOs and Employer Of Record

When considering a partnership with a PEO in Switzerland, you will likely also hear the term EOR (Employer of Record). Typically, the two terms are largely interchangeable based on the kind of services they offer. The main difference between the two is the level of liability taken on by the PEO/EOR and the parties involved in the agreement.  

  • A PEO provides all HR services to employees on behalf of other companies 
  • A PEO agreement is made between the PEO and the original company to share the responsibilities for the employee 
  • An EOR in Switzerland legally hires the employee on behalf of the original company and provides all HR services 
  • An EOR agreement is made between the EOR and the employee on behalf of the original company 

In Switzerland both services are indistinct according to national regulations, but INS Global can offer any elements of both according to your requirements 

INS GUIDES

Check Our Switzerland Labor Law Guide

Learn how the Swiss Labor Law Guide is applied in all aspects and situations, from an employer and employee perspective.
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Switzerland Labor Law Overview

Employment Contracts In Switzerland

  • It’s generally considered a good business practice to have employment contracts in writing, including all necessary details such as salary amount, vacation days, termination guidelines, etc
  • If there are CBAs (collective bargaining agreements) in place, then the contract will need to adhere to those regulations.
  • Contracts in Switzerland can be probationary, fixed-term, or indefinite-term.
  • A probation period is typically one month. During that time the contract may be terminated with seven days’ notice.
  • Notice periods outside of the probation month range from 1-3 months, depending on seniority. Severance pay is not government mandated unless the employee is over 50 years old and has been with the company for more than 20 years.

Working Hours

  • The maximum hours in a workweek are 45 hours for industrial or office staff, and technical or sales employees. For employees in other sectors, the maximum is 50 hours.
  • Overtime is compensated at an additional 25% above regular wages. The daily overtime limit is 2 hours, or 170 hours annually (for a 45 hr work week) or 140 hours (for a 50 hr work week)
  • Employers required to work on Sundays or during public holidays are renumerated at 50% of normal wages.

Types Of Leave

Holidays and Annual Leave

  • National day in Switzerland is August 1st and is celebrated nationwide. Other public holidays are determined by Swiss cantons (states) and can vary according to the region’s religious affiliation or local practices.
  • Full-time employees receive paid leave on public holidays, while part-time or hourly employees are compensated according to the rate specified in their contract.

Sick Leave

  • Sick leave in Switzerland increases with every year the employee spends with the company. During the first year of employment, the employee receives 3 weeks of medical leave which goes up to 9 weeks in the third year.
  • Any sick leave that lasts longer than 3 days requires a medical certificate.
  • Sick leave compensation is covered by state health insurance.

Parental Leave

  • Maternity leave is 14 weeks after birth. Employers cannot dismiss an employee for the first 16 weeks after birth.
  • Employees who have worked for a minimum of 3 months before taking this leave will receive 80% of their salary during maternity leave.
  • Fathers receive two weeks of paid paternity leave.

Tax Law in Switzerland

  • Corporate tax is 8.5%. VAT is 7.7%.
  • Employers are expected to handle their employee’s social security tax:
  • Old age, veteran, and disability insurance: 10.6%. Employer and employee each pay half.
  • Workplace accident insurance: averages 0.17%. Covered by the employer.
  • Family compensation: 0.3-3.5%. Covered by the employer.
  • Unemployment: 2.2%. Employer and employee pay half.
  • Medical insurance is covered by the employee.
  • Income tax is taxed at a progressive rate from 0.77 to 11.5%
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Frequently Asked Questions

faqs

An EOR ensures that your business remains compliant with all Swiss labor laws, including employment contracts, working hours, and employee benefits. They handle the complexities of local regulations, so you don’t have to worry about legal pitfalls.

Yes, an EOR in Switzerland can manage employment contracts in German, French, Italian, or English, depending on the region. They ensure that the contracts meet local legal standards, regardless of the language.

An EOR helps set up probationary periods in compliance with Swiss law, typically lasting up to 3 months but extendable to 6 months by mutual agreement. They handle all the legal documentation and termination processes if needed during this period.

An EOR monitors employee working hours to ensure compliance with Swiss labor laws, which include strict limits on overtime. They manage the compensation for overtime, whether through higher wages or compensatory time off, in accordance with legal requirements.

An EOR in Switzerland ensures that any employee terminations are handled in compliance with Swiss labor laws, including notice periods and, if applicable, severance pay. They provide guidance on legal grounds for termination and manage the necessary paperwork.

Yes, an EOR handles all contributions to the Swiss social security system, including health insurance, pensions, and unemployment insurance. They ensure that both employer and employee contributions are accurately calculated and submitted on time.

An EOR manages all aspects of paid leave, including annual leave, sick leave, and public holidays, which vary by canton. They ensure that employees receive their entitled benefits in compliance with Swiss labor laws.

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Smiling woman representing the simplicity and efficiency of a Global Employer of Record for international hiring

A Global Employer of Record is an effective solutions for companies like yours that are looking to expand a workforce abroad effortlessly.

This approach allows you to outsource the international hiring process quickly and efficiency, providing access to a global talent pool while still managing payroll compliance in each  country.

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Public Holidays Calendar

Switzerland

Date Day Holiday Notes
1 January Wednesday New Year’s Day Observed nationwide
29 May Thursday Ascension Day Observed nationwide
1 August Friday Swiss National Day Only official federal holiday; observed nationwide
25 December Thursday Christmas Day Observed nationwide

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