Hiring employees in Switzerland means navigating one of Europe’s more structured employment frameworks. The country’s system blends federal minimums with cantonal variations, and several obligations fall directly on employers rather than on employees themselves. If you’re managing a Swiss workforce from abroad, understanding how leave entitlements, insurance contributions, and benefits work in practice will help you stay compliant and competitive as an employer.
Annual leave and public holidays
Switzerland sets clear minimums for paid time off, but the picture gets more complex once cantonal holidays come into play.
Annual leave entitlements
Every employee in Switzerland is entitled to a minimum of 4 weeks (20 working days) of paid annual leave per year. Employees under 20 years old receive a higher minimum of 5 weeks (25 working days). These are statutory floors, and many employers offer more generous allowances, particularly for senior roles or in competitive sectors.
Leave entitlement accrues from the start of employment. If an employee leaves mid-year, they’re entitled to a pro-rated portion of their annual leave.
Public holidays
Switzerland has just one federal public holiday: 1 August (Swiss National Day). Every other public holiday is set at the cantonal level, with cantons typically adding between 7 and 15 additional days per year. In practice, employees in most cantons enjoy between 8 and 15 public holidays annually, but the exact number depends on where your employee is based.
This matters for employers because public holiday entitlements vary significantly between, say, Geneva and Zurich. You’ll need to account for the specific canton when setting up employment contracts and payroll.
Sick leave and workplace absence
Switzerland doesn’t set a statutory minimum sick pay period in federal law. Instead, the obligation on employers is shaped by the Code of Obligations and, more practically, by insurance arrangements that have become standard across Swiss employment.
Employer obligations during illness
In the absence of a collective agreement or salary continuation insurance, the Code of Obligations requires employers to continue paying salary during illness for a period that scales with an employee’s length of service. A commonly applied benchmark is 3 weeks’ paid sick leave in the first year of service, with the entitlement rising as tenure increases.
Salary continuation insurance
Most Swiss employers cover themselves and their employees through salary continuation insurance (Krankentaggeldversicherung). This isn’t legally mandatory, but it’s widely used. A typical arrangement covers 80% of salary for up to 720 days, protecting employees through extended illness while capping the employer’s direct liability. Employees should be aware that coverage terms vary by insurer and policy, so reviewing your specific arrangements is important.
Maternity, paternity, and parental leave
Switzerland’s leave system for new parents is funded through the EO (income compensation insurance), a federal scheme both employers and employees contribute to through payroll deductions.
Maternity leave
Employed mothers are entitled to 14 weeks (98 days) of paid maternity leave. Benefits are paid at 80% of salary, capped at CHF 220 per day. To qualify, an employee must have made AHV contributions for at least 9 months before giving birth and must have been employed for at least 5 months immediately before the birth.
Geneva is an exception: the canton supplements the federal entitlement, bringing maternity leave to 16 weeks for employees working in Geneva.
Maternity benefits are paid through the EO scheme, not directly by the employer. The employer’s role is to process the claim correctly and ensure the employee receives their entitlement without interruption.
Paternity leave
Fathers and co-parents are entitled to 2 weeks (10 working days) of paid paternity leave, paid at the same rate as maternity leave: 80% of salary, capped at CHF 220 per day. This leave must be taken within 6 months of the child’s birth, either all at once or in individual days.
Parental leave
Switzerland doesn’t have a federal paid parental leave scheme beyond the maternity and paternity entitlements described above. Some employers offer additional unpaid leave or enhanced provisions through collective agreements, but there’s no statutory right to extended paid parental leave at the federal level.
Social insurance and pension contributions
Switzerland’s benefits system relies heavily on employer contributions to several mandatory schemes.
Health insurance (krankenkasse)
Switzerland’s mandatory basic health insurance operates differently from most comparable countries. Employees are individually responsible for purchasing their own health insurance from a registered insurer. Employers don’t contribute to health insurance premiums. What employers are required to do is inform new employees, particularly those arriving from abroad, that they must register for health insurance within 3 months of arriving in Switzerland. Missing this window can result in employees being assigned a policy by their canton, often at a higher premium.
Bvg occupational pension (2nd pillar)
The BVG (Berufliche Vorsorge) is Switzerland’s mandatory occupational pension scheme, and employers play a direct role in funding it. Employers must contribute at least 50% of the total BVG contribution, with the employee contributing the remainder through payroll deductions. Accumulated pension savings earn a minimum interest rate of 1.25% annually under current federal regulations.
The third pillar (private pension) is entirely voluntary and carries no employer obligation.
Accident insurance (uvg)
Accident insurance under the UVG (Unfallversicherungsgesetz) is mandatory for all employees. Occupational accident insurance is fully funded by the employer. Non-occupational accident insurance covers employees outside of work and is funded by the employee, typically deducted directly from salary. Employers are responsible for enrolling employees with an approved insurer.
Family allowances and the 13th month salary
Family allowances
Swiss law entitles employees to family allowances funded through employer contributions to cantonal funds. The allowances are paid directly to the employee and the amounts vary slightly by canton. As a benchmark, child allowances run to CHF 200–215 per month per child, while education allowances for children aged 16 and over run to CHF 250–268 per month. Employers contribute to the cantonal family compensation fund regardless of whether their employees have children.
13Th month salary
There’s no federal law requiring a 13th month salary payment in Switzerland, but it’s contractually standard practice. If a 13th month salary is written into an employment contract, it becomes legally binding. Employers who include it should ensure it’s reflected correctly in payroll and any calculations for termination payments or leave accrual.
Managing swiss employment with an EOR
For foreign companies hiring in Switzerland without a local legal entity, working with an Employer of Record (EOR) is a practical route to compliant employment. An EOR becomes the legal employer on record, handling payroll, social insurance registrations, cantonal holiday tracking, BVG enrollment, and leave administration on your behalf. This removes the need to establish a Swiss subsidiary before hiring.
If you’re evaluating your options, comparing EOR services will help you find a provider that covers Swiss-specific requirements, including cantonal variations and mandatory insurance schemes.
FAQ
Do employers in Switzerland have to contribute to employee health insurance?
No. Switzerland’s mandatory basic health insurance is an individual responsibility. Employees purchase their own policies directly from registered insurers. Employers don’t contribute to premiums, but they are required to inform new employees, especially those relocating to Switzerland, that they must register within 3 months of arrival.
Is a 13th month salary mandatory in Switzerland?
It isn’t mandatory under Swiss law, but it’s standard practice and is typically included in employment contracts. Once written into a contract, it becomes a legally binding obligation. Employers should factor it into payroll and termination calculations from the start.
How do public holidays work if employees are based in different cantons?
Public holiday entitlements are cantonal. Only 1 August is a federal holiday; all other public holidays are set by each canton individually. If you have employees in multiple cantons, each employee’s holiday entitlement will differ based on their location. Employment contracts should reference the applicable canton.
What happens if an employee is called up for Swiss military or civil service?
Employees called up for Swiss military or civil service are entitled to leave, and the employer must grant it. Compensation during service is paid through the EO (income compensation insurance) scheme, the same federal fund that covers maternity and paternity benefits. Employers can’t refuse or penalise employees for fulfilling their service obligations.
