Hiring in Switzerland
Hiring your first employee in Switzerland: an employer’s checklist
Your first hire involves more than signing a contract. Before the employee starts, organise the job, total employment cost, work authorisation, insurance and payroll—with the Geneva rules clearly identified.
By Sarah Prieur · Swiss certified accountant
At a glance
Key takeaways
- A business with one employee still has employer obligations, including social insurance, accident cover and payroll.
- Budget for employer contributions and operating costs as well as gross salary.
- Check collective agreements, standard employment contracts and any cantonal minimum wage before agreeing pay.
- Put required cover in place from the start and review a test payslip before the first payment.
Define the role and budget for the full cost
Write down the tasks, decision-making authority, working percentage and hours. Distinguish a permanent role from a temporary need, and specify the results expected during the first months. “Help with administration” is too vague for recruitment, training or evaluation.
Compare annual pay, not just a monthly figure. CHF 5,500 paid thirteen times is CHF 71,500 a year; paid twelve times, it is CHF 66,000. A thirteenth salary is not a universal Swiss legal entitlement, but it can be required by the contract or a collective agreement.
A CHF 6,000 gross monthly salary costs the business more than CHF 6,000. Add employer social contributions, insurance and pension costs on the correct bases, then recruitment, equipment and administration. Net pay is a separate figure after employee deductions.
Check cash flow as well as profitability: an invoice issued is not cash received. If you are using newly contributed company funds, our Swiss share capital guide explains the difference between capital and available cash.
Check the legal framework and right to work
Identify any collective employment agreement (CCT), standard employment contract and cantonal minimum wage. A salary cannot be set solely by your available budget where mandatory minima apply.
Geneva, 2026: the general minimum wage is CHF 24.59 gross per hour, subject to scope, exceptions and the separate agriculture and floriculture regime. It is a legal floor, not a market salary benchmark for every occupation.
Check work authorisation before the start date. EU/EFTA procedures depend on factors including duration and residence; third-country nationals face different conditions. Signing a contract is not permission to start work.
Nor does receiving an invoice establish that someone is self-employed for social insurance. If the relationship involves employee-like subordination, clarify the status with the relevant compensation office. A trading name does not prevent reclassification.
Prepare a contract that works in practice
An ordinary Swiss employment contract can generally be oral, but a written contract is strongly recommended and specific clauses or contract types require particular formalities. For an indefinite contract or one lasting more than a month, essential information must be provided in writing within the statutory one-month period after the start.
- Role, start date, workplace and reporting line.
- Working percentage, weekly hours and time-recording arrangements.
- Salary, payment frequency, variable pay and any thirteenth salary.
- Probation, holiday entitlement, absences and notice periods.
- Expense reimbursement, equipment and relevant workplace rules.
Do not simply adapt a UK, US or French template by changing the currency. Probation, overtime, termination and pension provisions must fit Swiss law and the applicable agreement.
For remote work, specify permitted locations, equipment, expenses and time recording. An employee working partly from a home abroad also raises social insurance and tax questions, beyond the wording of a remote-work clause.
Arrange employer registration and insurance
| Organisation or cover | What to arrange |
|---|---|
| AHV/AVS compensation office | Employer registration, employee identification and estimated payroll |
| Family allowance fund | Affiliation and applications supported by the required evidence |
| Accident insurance | Cover appropriate to the industry and working hours |
| Occupational pension fund (BVG/LPP) | Affiliation when conditions apply and choice of plan |
| Daily sickness benefits insurance | Review agreement requirements and salary-continuation risk |
| Cantonal tax authority | Withholding-tax setup for employees subject to tax at source |
Record the correct social insurance number and keep payroll estimates current. Provisional social contributions are reconciled against actual reported wages. Family allowances require an application and a decision; ticking “has children” in software is insufficient, and priority between parents must be assessed.
Accident cover and the eight-hour rule
Employees subject to compulsory accident insurance must be covered for occupational accidents. Non-occupational accident cover becomes mandatory at eight hours a week or more with the same employer. Below that level, commuting accidents receive specific treatment and the employee’s other accident cover should be checked.
Occupational pension and sickness
The BVG/LPP entry threshold is CHF 22,680 a year in 2026. Annualised salary, age and contract duration matter; do not wait until the employee has actually received that much during the year. Exceptions, including certain short engagements, require review.
Daily sickness benefits insurance is not universally compulsory under federal law, but a collective agreement or standard contract may require it. Without suitable equivalent cover, the employer remains exposed to statutory salary-continuation obligations during illness.
Prepare and review the first payslip
Collect bank details, the employment contract, relevant social and tax information, and affiliation decisions. Restrict access to the people who need these records.
Configure salary, employee deductions, employer costs, benefits in kind, expense reimbursements and any tax at source separately. A reimbursed business expense should not automatically be added to gross salary and subjected to every deduction.
- Does gross pay match the contract?
- Are the contribution and tax bases correct?
- Are deductions supported by the employee’s situation and applicable rules?
- Does the bank payment match the amount due?
Prepare the accounting entry and track amounts owed to social insurance bodies. A deduction on a payslip does not prove the contribution has been remitted. Consistent payroll records should also support the annual Swiss salary certificate.
For Geneva employment, document the minimum-wage and tax checks. Where tax at source applies, assign responsibility for notifications, tariff selection and deadlines. Karpeo’s Swiss payroll management service can help organise this work.
Practical checklist: before day one and through the first month
Before the employee starts
- Approve the role, annual salary and complete employer budget.
- Check mandatory employment terms and work authorisation or notification.
- Agree the contract and confirm required insurance from the start date.
- Create the employee file, prepare equipment and assign a payroll contact.
On the first day
- Explain duties, access rights, safety rules and working hours.
- Show how to report absences, request holiday and claim expenses.
During the first month
- Collect time records, expenses and any family-allowance decisions.
- Review a test payslip early enough to fix missing information.
- Pay the employee and follow up social insurance and tax liabilities.
Before probation ends
Review expectations, progress and any difficulties in time to act within the applicable notice rules. Working-time obligations continue during probation. A short procedure that is actually followed is more useful than a large onboarding file that nobody consults.
Frequently asked questions
Can a Swiss sole proprietor hire an employee?
Yes. The legal form does not prevent hiring. The sole proprietor becomes an employer and must organise social insurance, required cover and payroll.
Is daily sickness benefits insurance compulsory?
There is no universal federal obligation, but a collective agreement or standard employment contract may require it. Without suitable equivalent cover, the employer remains exposed to statutory salary-continuation duties.
Can the employee start before the insurance is arranged?
Required cover should be in place from the start of employment. Trying to regularise the situation after an accident creates avoidable difficulties.
Is the minimum wage enough to decide the salary?
No. Where applicable, it is a legal floor. The role, skills, industry and relevant salary comparisons also inform a suitable offer.
Can an accounting firm manage payroll?
Yes. The business still needs to supply complete information, approve payroll variables and organise payments. Agree the division of responsibilities from the outset.
Sources and further reading
About the author
Sarah Prieur
Sarah is a Swiss certified accountant, partner and head of operations at Karpeo. She supports SMEs and self-employed clients with accounting, tax, VAT and payroll, and oversees the quality of client files and year-end accounts. Before Karpeo, she spent eight years in audit at PwC Switzerland, progressing to manager.
Prepare your first hire with a clear payroll process
Tell Karpeo about the role and intended start date so we can help organise payroll and employer administration.
