Employer of Record in Switzerland: 2026 Cost and Compliance Guide

Switzerland has some of the world's highest salaries and a deep talent pool in finance, pharma, engineering and technology, centred on Zurich, Geneva, Basel and Lausanne. Employer costs on top of salary are moderate, typically about 9–13% for an office employee in Zurich: federal social insurance (AHV/IV/EO and unemployment insurance), a cantonal family allowance contribution, the mandatory BVG occupational pension and accident insurance.

The Swiss-specific issue is structure. Supplying employees to work under another company's direction is staff leasing (Personalverleih), which needs a cantonal licence, and leasing from abroad into Switzerland is prohibited. An Employer of Record (EOR) must therefore employ your hire through a licensed Swiss entity.

This guide covers costs, the staff-leasing rules, the Code of Obligations, provider comparison and when to set up your own company. Figures link to official sources. We do not test or use the providers listed; see our methodology.

An Employer of Record in Switzerland is a company with a Swiss entity that employs staff on behalf of foreign businesses. It signs the employment contract, registers the employee with a compensation fund (AHV), a family allowance fund, a BVG pension fund and an accident insurer, runs payroll, and handles holidays and termination under the Code of Obligations.

Because your company directs the work, the arrangement is staff leasing under the Recruitment and Staff Leasing Act (AVG). The leasing company needs an operating licence from the cantonal employment office, must be entered in the Swiss commercial register, and must post a deposit to secure wage claims (Articles 12–14).

Ask each provider which Swiss entity will employ your hire, for its staff-leasing licence, and how it handles work permits for non-Swiss hires.

Under the Recruitment and Staff Leasing Act (AVG, SR 823.11), an employer that commercially hires out workers to third parties needs an operating licence from the cantonal employment office (Article 12(1)). Leasing workers abroad also needs a licence from SECO, and leasing from abroad into Switzerland is not permitted (Article 12(2)).

To get a licence, the business must be entered in the Swiss commercial register and have suitable business premises, and the people managing it must be Swiss citizens or foreigners with a settlement permit (Article 13). The leasing company must also post a deposit to secure wage claims (Article 14).

The contract with the employee must normally be in writing and cover the type of work, place of work, pay and working hours (Article 19), and the contract between the leasing company and your business must also be in writing (Article 22).

What to ask an EOR

Swiss employment cost has four layers: gross salary, social insurance (AHV/IV/EO, unemployment and family allowances), the BVG occupational pension and accident insurance, plus the EOR fee.

Rates below are for an office employee in the canton of Zurich. Family allowance contributions and administration charges vary by canton and fund, and BVG contributions depend on age and on the pension fund's rules. Choose the age band in the estimator.

Annual cost at example salaries

What these figures include and exclude

• Rates are for an office employee aged 35–44 in Zurich. BVG contributions rise with age; choose the age band in the estimator.
• The BVG figure is the legal minimum on the coordinated salary. Most employers' pension plans insure more of the salary and contribute more, so ask your EOR for its plan's actual rates.
• Compensation funds charge an administration contribution on AHV/IV/EO contributions (at SVA Zürich, from 5% down to below 1.25% of contributions depending on volume), which adds a small amount to payroll costs.
• Employee shares of AHV/IV/EO, ALV and BVG, and non-occupational accident premiums, are deducted from pay and are not employer costs. Foreign employees without a settlement permit usually pay tax at source, deducted by the employer.
• Maternity pay is funded by the EO scheme: 80% of average earnings, up to CHF 220 a day, for 14 weeks.

Estimate your own cost

Enter a salary to see the estimated annual cost, including mandatory employer contributions and an EOR fee. Change the fee to match the quotes you receive. For worked examples at four salary levels, see cost to hire an employee in Switzerland.

Swiss employment law is set mainly by the Code of Obligations (OR), the Labour Act (ArG) and, for EOR arrangements, the Recruitment and Staff Leasing Act (AVG). Collective agreements can set more favourable terms. Key rules below.

Staff leasing licence

Businesses that commercially hire out workers need an operating licence from the cantonal employment office; leasing from abroad into Switzerland is not permitted. The leasing company must be in the commercial register and post a deposit for wage claims.[10]

AVG, Articles 12–14.

Written contracts (staff leasing)

The leasing company must normally conclude the employment contract in writing, covering the type of work, place and start of work, duration or notice, working hours, pay and deductions, and benefits for overtime, illness, maternity, accident and holidays. The leasing contract with the client must also be in writing.[10]

AVG, Articles 19 and 22.

Probation

The first month is a probation period, during which either side can give 7 days' notice. A written agreement can extend probation to a maximum of 3 months; absences for illness or accident extend it accordingly.[8]

OR, Article 335b.

Notice periods

After probation: 1 month in the first year of service, 2 months in years 2 to 9 and 3 months after that, each to the end of a month. They can be changed in writing, but reduced below 1 month only by collective agreement and only for the first year.[8]

OR, Article 335c.

Protection against dismissal

After probation, the employer may not give notice during protected periods, including illness or accident (30 days in the first year, 90 days in years 2 to 5, 180 days from year 6), pregnancy and 16 weeks after childbirth, and military or civil service.[8]

OR, Article 336c.

Working hours

The maximum working week is 45 hours for industrial workers, office staff, technical and other employees, and 50 hours for all others.[9]

Labour Act, Article 9.

Overtime

Overtime that isn't compensated with time off of at least equal length must be paid at normal salary plus at least 25%, unless otherwise agreed in writing or set by a collective or standard employment contract.[8]

OR, Article 321c.

Holidays

At least 4 weeks of paid holiday each year of service, and 5 weeks up to age 20. Holidays are pro-rated for part years.[8]

OR, Article 329a. Public holidays are set by the cantons.

Sick pay

If an employee can't work through no fault of their own, such as illness or accident, the employer pays salary for 3 weeks in the first year of service and for an appropriately longer period after that, unless an agreement provides an equivalent arrangement (usually daily sickness insurance).[8]

OR, Article 324a.

Maternity and parental leave

At least 14 weeks of maternity leave after childbirth, paid by the EO scheme at 80% of average earnings (up to CHF 220 a day); 2 weeks' leave for the other parent.[8]

OR, Articles 329f and 329g; AHV/IV factsheet 6.02.

Accident insurance

Employees are insured against accidents. The employer pays occupational accident premiums; non-occupational accident premiums are the employee's unless agreed otherwise.[7]

UVG, Article 91.

These EOR providers publish information about employing in Switzerland. Prices are their own published starting rates in USD, from our pricing tracker. Quote-only providers are marked.

In Switzerland, ask which Swiss entity employs your hire, for its cantonal staff-leasing licence, and which BVG pension plan and accident insurer it uses.

Compare providers for Switzerland

• RemoFirst vs PlayrollIn Switzerland: US$199 vs US$399 a month (published starting prices).
• Rippling vs RemoFirstIn Switzerland: quote vs US$199 a month (published starting prices).
• Deel vs Globalization PartnersIn Switzerland: US$599 vs US$599 a month (published starting prices).
• Globalization Partners vs PeblIn Switzerland: US$599 vs US$399 a month (published starting prices).

For Switzerland-specific selection criteria and a shortlist, see best EOR providers in Switzerland. For each provider's products and pricing model, see the provider directory.

The usual alternatives are a limited liability company (GmbH), a company limited by shares (AG) or a registered branch, each entered in the commercial register. Once you employ staff, you register with a compensation fund, a family allowance fund, a BVG pension fund and an accident insurer.

Running costs include accounting and audit (where required), payroll and social insurance administration, and registered office services. A Swiss entity employs staff directly, so the staff-leasing rules don't apply.

For a step-by-step version of this calculation, see EOR vs local entity: a break-even framework.

1. 1

   Define the role and salaryDay 0

   Agree the annual salary, whether it's paid in 12 or 13 instalments, the canton of work, and whether a non-Swiss hire needs a work permit.

2. 2

   Check the provider's licence1–2 days

   Ask which Swiss entity will employ your hire and for its cantonal staff-leasing licence.

3. 3

   Compare itemised quotes1–3 days

   Request Swiss quotes covering the fee, deposit, BVG plan rates, accident and sickness insurance, and offboarding. Use the estimator to sanity-check totals.

4. 4

   Sign the leasing agreement

   The staff-leasing contract with the provider must be in writing; review liability for termination costs, IP assignment and data protection (FADP).

5. 5

   Contract and registrations1–3 weeks

   The EOR issues a written employment contract and registers the employee with the compensation fund, family allowance fund, pension fund and accident insurer.

6. 6

   Ongoing administrationMonthly

   Monthly payroll, social insurance and pension contributions, tax at source where applicable, and the annual salary declaration.

Rates and rules on this page are based on the following official sources. Numbers in brackets in the tables above link to these entries.

1. 1
   Merkblatt 2.01: Lohnbeiträge an die AHV, die IV und die EO (Stand am 1. Januar 2026)

   Informationsstelle AHV/IV

   AHV 8.7%, IV 1.4%, EO 0.5%: total 10.6%, of which the employer pays 5.3%; administration contributions charged to employers.

2. 2
   Merkblatt 2.08: Beiträge an die Arbeitslosenversicherung

   Informationsstelle AHV/IV

   ALV 2.2% of salary up to CHF 148,200 a year, split equally; since 1 January 2023 no ALV contributions on salary above that amount.

3. 3
   Merkblatt 6.02: Mutterschaftsentschädigung

   Informationsstelle AHV/IV

   Maternity compensation for 14 weeks (98 days) at 80% of average earnings, up to CHF 220 a day.

4. 4
   Bundesgesetz über die berufliche Alters-, Hinterlassenen- und Invalidenvorsorge (BVG), SR 831.40

   Fedlex (Swiss federal law)

   Art. 7 entry threshold, art. 16 age credits (7%, 10%, 15%, 18%), art. 66 employer pays at least as much as employees.

5. 5
   Beträge gültig ab dem 1. Januar 2026

   Bundesamt für Sozialversicherungen (BSV)

   BVG 2026: minimum annual salary CHF 22,680, coordination deduction CHF 26,460, upper salary limit CHF 90,720.

6. 6
   AHV-Beitragspflicht: Arbeitgebende

   SVA Zürich (Sozialversicherungsanstalt des Kantons Zürich)

   Contribution table: family allowances in Zurich employer-only, SVA Zürich 1.025%; ALV 1.1% + 1.1% up to CHF 148,200.

7. 7
   Bundesgesetz über die Unfallversicherung (UVG), SR 832.20, Art. 91

   Fedlex (Swiss federal law)

   Employer pays occupational accident premiums; non-occupational accident premiums are borne by the employee unless agreed otherwise.

8. 8
   Obligationenrecht (OR), SR 220

   Fedlex (Swiss federal law)

   Arts. 321c (overtime), 324a (sick pay), 329a (holidays), 329f–329g (maternity and other-parent leave), 335b–335c (probation and notice), 336c (protected periods). Stand am 1. Oktober 2026.

9. 9
   Arbeitsgesetz (ArG), SR 822.11, Art. 9

   Fedlex (Swiss federal law)

   Maximum working week: 45 hours for office, technical and industrial staff; 50 hours for others.

10. 10
    Arbeitsvermittlungsgesetz (AVG), SR 823.11

    Fedlex (Swiss federal law)

    Staff leasing: cantonal licence and ban on leasing from abroad (art. 12), conditions (art. 13), deposit (art. 14), written employment and leasing contracts (arts. 19, 22). Stand am 1. Januar 2026.

Switzerland combines very high salaries with moderate employer costs: about 9–13% on top of salary for social insurance and the minimum BVG pension in Zurich, depending on age and salary, plus accident insurance. Through an EOR, plan for roughly 1.1–1.2× gross salary in total, more if the pension plan goes beyond the legal minimum.

The Swiss-specific question is structure: an EOR is staff leasing, so the provider needs a cantonal licence and must employ your hire through a Swiss entity, because leasing from abroad is prohibited.

For a long-term team, compare an EOR against your own GmbH or AG with our EOR vs local entity guide. For neighbouring markets, see Germany, France and Italy.