Hiring in Switzerland: Your First Employee, Done Right
August 15, 2025
If you want to employ someone in Switzerland, there is the option to do so without having a registered company in the country. Switzerland has specific legislation for this. Below, you’ll find the key points for implementation, or you can visit our local partner, who will be happy to support you with the process.
Key Takeaways on Hiring in Switzerland
- Core Obligations: You must comply with Swiss labour law, register for social insurance, arrange accident insurance, and manage taxes correctly, keeping in mind that rules can vary by canton.
- Contract Essentials: Your employment contracts must be aligned with Swiss standards, clearly stating the salary in CHF, role, working hours, and holiday entitlements.
- Payroll and Social Insurance: Setting up a compliant monthly payroll is essential for managing both employer and employee contributions to social security schemes.
- Work Authorisations: The hiring process for EU/EFTA citizens is much simpler than for third-country nationals, who are subject to quotas and stricter checks.
- Cost and Timing: Factor in salary, social charges, and insurance when budgeting. The main advantage of hiring directly is getting your employee active in the market sooner.
- Hiring Models: Consider lean options like an Employer of Record (EOR) or ANOBAG to start, before committing to establishing a full Swiss legal entity.
- Candidate Expectations: Swiss professionals value clarity on pay, benefits, and pensions. Punctual payment and transparent communication are key to building a good reputation.
- Common Risks: Avoid typical errors like using foreign contract templates and missing registration deadlines by using a checklist and seeking local advice.
- A Simple Plan: Start with a clear hiring brief, choose your employment model, draft a compliant contract, and schedule regular reviews to assess if incorporating a Swiss company is necessary.
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Core obligations at a glance
You must align the employment contract with Swiss labour law, register for social insurance (AHV/ALV/IV), arrange accident insurance and handle tax correctly. Cantonal differences exist. Precision beats speed when you draft documents and register.
Contract essentials
Define role, salary in CHF, variable pay rules, working time, holidays, probation and notice. State benefits clearly. Avoid copying home-country templates. Translate key terms where helpful. Keep clauses enforceable under Swiss norms.
Payroll and social insurance
Set up monthly payroll with correct employee and employer contributions. Track allowances, expenses and benefits in kind. Reconcile with authorities on schedule. Consistency builds trust with both the employee and regulators.
Work authorisations
EU/EFTA nationals have simplified routes. Third-country nationals face quotas and stricter tests. Check permit type, lead times and employer duties before you sign. Build a realistic start date into the offer.
Cost and timing
Budget for salary, social charges, insurance and setup fees. The real saving is time to learning: getting a person active in the market weeks sooner. Tie spending to measurable pipeline and revenue signals.
Hiring models compared
Start lean with a compliant bridge such as ANOBAG or an Employer of Record, then incorporate once headcount and revenue justify it. Choose the model that matches your risk tolerance, speed needs and control over the employee relationship.
Candidate expectations
Swiss professionals expect clarity on pay, benefits, holidays, pension contributions and tools. Pay on time, communicate plainly and remove friction in onboarding. Reputation compounds quickly in a small market.
Common risks and fixes
Scope creep, template misuse and missed registrations are the classics. Fix them with a short checklist, local review of contracts and a monthly compliance rhythm. When headcount grows, reassess whether a Swiss entity is now cleaner.
A simple plan
Write a one-page hiring brief, select the model, draft the contract, complete registrations and set a 6–12 month review to decide on incorporation. Track pipeline quality, win rates and renewal signals to guide the next step.
