February 20, 2024
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 specialist partner, who will be happy to support you with the process.
Use a Swiss payroll agency when you need a compliant hire fast, want local expertise, and prefer not to incorporate yet. It suits a single strategic role, a pilot team, or a staged market entry.
Expect contract localisation under Swiss labour law, monthly payroll, social insurance registrations, accident insurance, withholding tax where required, and year-end certificates. Clear onboarding and offboarding are part of the service.
Contracts must reflect Swiss norms on probation, notice, holidays and benefits. The agency should register with AHV/IV/EO, ALV, UVG, and family allowances. Confirm cantonal source tax and reporting duties from day one.
Ask for a simple fee model that lists base processing, per-employee charges and any one-off setup cost. Insist on itemised payslips and monthly reconciliations so you see gross to net and employer on-costs.
EU or EFTA nationals follow simplified rules. Third-country hires require permits with quotas and tests of need. Align offer letters with realistic lead times and responsibilities.
Check GDPR alignment, Swiss data residency where possible, role-based access and audit trails. Payroll data is sensitive. Verify encryption at rest and in transit and name a data owner on your side.
Set deadlines for payroll cut-off, payment dates and authorities’ filings. Agree response times for tickets and a named account lead. Require redundancy plans for public holidays and illness.
Do not reuse home-country templates. Avoid late registrations and underestimating cantonal differences. Fix with a short compliance checklist, local contract review and a monthly control file.
When headcount or revenue justifies it, move from agency payroll to your Swiss company. Plan contract novations, pension fund enrolment and insurer transfers. Run a parallel test month before you switch.
Define the role, choose the hiring model, collect employee data, sign the localised contract, complete registrations, run a shadow payroll, then go live. Review at six and twelve months to decide on incorporation.
A payroll agency is a great choice when you need to hire someone in Switzerland quickly and compliantly, but you are not ready to set up a local company. It is perfect for hiring a single key person, testing the market with a small team, or for a phased entry into the country.
A reliable agency should manage the entire employment lifecycle. This includes creating Swiss-compliant employment contracts, running monthly payroll, handling all social insurance and tax registrations, and managing employee onboarding and offboarding processes.
Employment contracts must follow Swiss labour laws regarding probation periods, notice, and holiday entitlements. The payroll agency is responsible for registering the employee with all necessary social security schemes, like AHV/IV/EO and ALV, and managing cantonal withholding taxes correctly from the start.
Hiring EU or EFTA nationals is relatively straightforward due to simplified regulations. In contrast, hiring individuals from other countries, known as third-country nationals, involves a more complex process that requires specific work permits, which are subject to quotas and a review of local labour market needs.
When your business grows enough to justify it, plan a careful transition. This involves legally transferring employment contracts, enrolling employees in your company's pension fund, and moving insurance policies. It is a good idea to run a parallel payroll for a month to ensure everything is correct before making the final switch.
