Hiring Your First Employee in Switzerland: Costs and Obligations
Contracts, social insurance registration, payroll and the real cost on top of gross salary.
6 min read · Business & Freelance
Life situations: Self-employment
Hiring is a big step. Plan the full cost and the paperwork before you sign.
The contract
An employment contract can be oral, but a written one avoids disputes. Define salary, hours, vacation (at least four weeks), notice periods and any probation period (normally one month).
- Gross yearly salaryCHF 90'000 · 86 %
- Employer social costsCHF 14'760 · 14 %
Example with default values. Open the calculator →
Register and insure
- AHV/IV/EO and ALV via your compensation office, with family allowances.
- Accident insurance (UVG), including occupational and non-occupational accidents.
- Pension fund (BVG) if the employee earns above the entry threshold.
- Daily sickness allowance insurance is optional but strongly advised.
The real cost
Add employer social charges, which are often 15–20 % on top of gross salary, plus training, equipment, recruitment and management time. Do not forget the 13th salary if agreed.
Payroll
Run payroll monthly, deduct the employee's share, pay contributions and issue a salary certificate at year-end. Payroll software or a fiduciary can help.
Test affordability
Use the employer cost calculator to see the full yearly cost.
Try it yourself: Total Employer Cost per Employee
Change any input and the result updates instantly. Nothing you enter is sent to a server.
- Total yearly cost
- CHF 104'760
- Cost on top of gross
- 16.40 %
- Total cost per month
- CHF 8'730
- Gross yearly salaryCHF 90'000 · 86 %
- Employer social costsCHF 14'760 · 14 %