Swiss Employer Rates and Thresholds 2026

Swiss employers pay half of AHV/IV/EO (old-age, disability and income compensation) with no upper limit, half of unemployment insurance (ALV) up to CHF 148,200 a year, a family allowance contribution set by canton and fund, and at least half of the BVG occupational pension on the coordinated salary (salary between CHF 26,460 and CHF 90,720 in 2026).

BVG age credits rise with age from 7% to 18% of coordinated salary; the table shows the employer's minimum half for an employee aged 35 to 44 (5%), with the other age bands below. The family allowance rate is Zurich's (SVA Zürich). Occupational accident insurance (UVG) is also employer-paid, at a rate set by the insurer and risk class, so it isn't in the table.

Employer contributions for a full year in Zurich, for an employee aged 35 to 44 (BVG credits are lower before 35 and higher from 45):

The minimum BVG age credit depends on the employee's age, as a share of coordinated salary. Employers pay at least half; many pension plans pay more, on more of the salary.

• The maximum working week is 45 hours for industrial workers, office staff, technical and other employees, and 50 hours for all others.
• 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.
• 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.
• 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).
• 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.
• Employees are insured against accidents. The employer pays occupational accident premiums; non-occupational accident premiums are the employee's unless agreed otherwise.

• 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.
• 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.
• 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.
• 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.
• 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.

Changes to these rates and rules, newest first. Every country is covered in our law changes tracker.

• From 1 January 2027: Swiss BVG coordination deduction and entry threshold rise. With the AHV/IV pension increase decided by the Federal Council on 2 October 2026, the BVG coordination deduction rises from CHF 26,460 to CHF 26,880 and the entry threshold from CHF 22,680 to CHF 23,040 from 1 January 2027.