Cost to Hire an Employee in Switzerland (2026)

• Gross salary, usually paid monthly.
• Employer costs of about 9.4% at a CHF 120,000 salary: CHF 11,279 a year, of which the largest is AHV/IV/EO (old-age, disability and income compensation).
• An EOR fee, if you hire without your own entity. The providers in our Switzerland guide publish starting prices of US$199–599 per employee per month; see how to choose an EOR in Switzerland for the shortlist.

Mandatory employer costs at a CHF 120,000 salary (mid-level professional). Employee contributions and income tax come out of gross pay and aren't included.

Contribution ceilings mean employer costs can be a smaller share of higher salaries. Figures exclude the EOR fee.

• AHV/IV/EO: 10.6% of salary, split equally (5.3% employer)
• Unemployment insurance (ALV): 2.2% up to CHF 148,200, split equally
• Occupational pension (BVG): Age credits of 7–18% of coordinated salary; employer pays at least half
• Paid holiday: At least 4 weeks (5 weeks up to age 20)
• Maximum working week: 45 hours for office and technical staff
• Notice after probation: 1 month in year 1, 2 months in years 2–9, then 3 months

• Daily sickness allowance insurance (optional) (0.5% of gross): Common way to cover sick pay beyond the employer's legal duty; employers often share the premium. 0.5% is an estimate.
• 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.

Without your own entity in Switzerland, an Employer of Record can employ your hire for a monthly fee. The alternative is setting up your own Swiss GmbH or AG. See the comparison in our Switzerland guide and EOR vs local entity.