Karpeo · Business in Switzerland
Choosing an umbrella company in Switzerland: fees, permits and protection
A low management fee is not enough to choose an umbrella company. Check the employment structure, relevant permits, insurance and the calculation from client billing to take-home pay. In Switzerland, arrangements often described as “portage salarial” must be assessed under Swiss rules.
By Sarah Prieur · Swiss certified public accountant
What should you check before choosing a Swiss umbrella company?
“Portage salarial” generally describes an arrangement in which a professional works for a client while employed by an intermediary company. English descriptions include umbrella employment or payrolling, but those labels do not settle the legal classification.
Examine the actual relationship. If it constitutes staff leasing, the Swiss Federal Act on Employment Services and the Hiring of Services (LSE/AVG) applies, including the relevant authorisation rules. Do not automatically import the French legal model.
Before comparing fees, establish who employs you, which permits they hold, how salary is calculated and which insurance covers the assignment. Obtain the proposed contracts and a detailed simulation before committing.
This article offers a comparison method, rather than a provider ranking. No single arrangement suits every profession or international situation.
Umbrella employment, self-employment and staff leasing
A self-employed professional operates on their own account and must obtain social security recognition under the applicable criteria. Issuing an invoice alone does not establish self-employment.
In the arrangement discussed here, the professional instead receives employee remuneration from a company that assumes employer obligations. The end client may direct some or all of the work. Where staff leasing applies, a separate agreement also links the intermediary and client.
An autonomous services contract is not classified in the same way as making personnel available. The contract’s heading is not decisive: actual direction, integration and organisation of the assignment matter.
Clarify this before the first working day. It affects permits, responsibilities, working conditions and insurance. When comparing with working on your own account, also review self-employed bookkeeping requirements. Compare the whole structure, not just an invoice amount.
Check authorisations and collective employment agreements
SECO and the cantons maintain an official register of authorised businesses. Search for the legal entity that will actually employ you, not only the group’s trading name. Check that its authorisation covers the relevant activity.
Commercial staff leasing requires cantonal authorisation. Relevant cross-border activities require additional federal authorisation. A foreign office or French-language website does not prove that a company may provide the proposed arrangement in Switzerland.
Staff leasing from abroad into Switzerland is prohibited under the Swiss framework. Do not treat it as an ordinary posting that can be freely organised. Ask the competent authority or a specialist to confirm an international structure before proceeding.
Ask which collective employment agreement applies. The staff-leasing CCT/GAV and relevant provisions in the client’s industry can affect pay, hours and insurance. Check the actual scope and current version.
Our article on Swiss collective employment agreements explains why the applicable CCT/GAV cannot simply be selected according to whichever document is most convenient.
Compare the full cost, not just the management fee
Providers may use different calculation bases or charge separately for services. Ask what the percentage includes, what amount it applies to and which additional costs exist.
The client’s invoice is not the employee’s gross salary. The commercial budget must cover agreed administration, employer contributions and other elements. VAT collected, where applicable, is not available employee remuneration.
How to read a salary simulation
The following is purely illustrative. It is neither a market tariff nor a statement of statutory contribution rates.
| Illustrative monthly budget | Assumed amount |
|---|---|
| Client budget excluding VAT | CHF 10,000 |
| Management costs | − CHF 500 |
| Modelled employer contributions and insurance costs | − CHF 1,500 |
| Separate agreed provision for future entitlements | − CHF 500 |
| Gross salary for this period under these assumptions | CHF 7,500 |
Explain any provision: what it covers, when it is paid and how it appears in the final statement. Avoid counting the same holiday pay or thirteenth-month salary component twice.
This is a reconciliation of the commercial budget, not permission to deduct employer costs or an administration charge from an already agreed gross wage. The employment contract and mandatory worker protections must be respected.
Employee deductions and, where applicable, withholding tax then determine net pay. A useful offer shows each stage. Our explanation of Swiss social security contributions helps distinguish statutory deductions from provider fees.
Examine pensions and insurance separately
Request insurer names, benefits, waiting periods and premium allocation. “All insurance included” is not enough to compare offers.
For occupational pensions, review insured salary, coordination, contributions, employer share and risk benefits. Two identical net-pay estimates may conceal different pension protection.
Check occupational accident cover and, where the conditions are met, non-occupational cover. For sickness daily allowances, examine benefit duration and how salary is maintained during the waiting period. Do not assume the policy matches the end client’s cover.
Clarify professional liability insurance and exclusions relevant to your work. Ask how an alleged client loss and defence costs are handled. These are contractual questions, not standard guarantees automatically attached to the word “umbrella”.
Read the employment and assignment contracts together
The employment terms should clearly identify remuneration, duration, working time, holidays and termination. The assignment documentation should not contradict them.
Check notice periods. The end of a client assignment does not necessarily extinguish all salary rights immediately. Statutory and contractual obligations still matter.
Ask how timesheets are approved, when salary is paid and what happens if the client disputes an invoice or pays late. Salary owed under an employment relationship should not be treated as an optional distribution of collected revenue.
Review confidentiality, intellectual property, non-compete wording and any clauses about later employment by the client. Swiss staff-leasing law invalidates provisions that prevent or hinder a worker’s transfer to the client after the employment contract ends. Permitted compensation arrangements between businesses are a separate issue.
Clarify wording whose consequences you do not understand. A confidentiality clause, for example, does not by itself decide ownership of work created during the assignment.
A checklist for comparing proposals
| Criterion | Evidence to request |
|---|---|
| Legal structure | Employer identity and relevant authorisations |
| Financial calculation | Reconciliation from client budget excluding VAT to net salary, with assumptions |
| Pension | Plan terms and contribution allocation |
| Sickness and accident | Policy conditions and waiting-period treatment |
| Administration | Sample payslip and expense reimbursement procedure |
| End of assignment | Notice, settlement of entitlements and departure documents |
| Availability | Named contact and agreed response arrangements |
Use the same assignment and assumptions for each request. Otherwise different durations, holiday-pay treatment or variable income presented as guaranteed can make offers misleadingly difficult to compare.
For a cross-border assignment, add immigration permission, social security affiliation and remote work. See also cross-border telework obligations for Swiss employers.
Choose an arrangement you understand and that fits your circumstances. If a favourable simulation cannot be reconciled with the contract, resolve the difference before signing.
Frequently asked questions about umbrella employment
Does an umbrella company make me self-employed?
No. The arrangement discussed here involves employment by an intermediary company. Recognition as self-employed follows separate criteria and procedures.
Does a 5% management fee mean I receive 95% as net salary?
No. Employer costs, employee deductions and other agreed components still need to be considered. The management percentage alone does not describe the total calculation.
Is the end client necessarily my employer?
No. Identify the contractual employer and each party’s responsibilities. How the work is actually directed and organised nevertheless matters to its legal classification.
Can I simply use a foreign umbrella company for a Swiss assignment?
No. Cross-border staff leasing is subject to specific requirements and restrictions. Leasing staff from abroad into Switzerland is prohibited under the relevant Swiss framework; do not assume easy invoicing makes a structure lawful.
Which documents should I request before signing?
Request the employment contract, assignment conditions and a detailed financial simulation together. Their consistency is more useful than a general promise about take-home pay.
Sources and checks
Sources checked on 10 October 2026. The financial example uses expressly hypothetical costs. A specific assignment may require employment, immigration or social security advice.
About the author
Sarah Prieur
Sarah Prieur is a Swiss certified public accountant, a partner and head of operations at Karpeo. She supports businesses, self-employed professionals and entrepreneurs with accounting, tax and VAT matters. Before joining Karpeo, she spent eight years in financial audit at PwC Switzerland, progressing to manager.
Read more about Sarah Prieur →