Working conditions for cross-border commuters in Switzerland
In the following, we would like to give you an overview of the working conditions for cross-border commuters in Switzerland. In particular about the employment contract, wages and salaries, working hours and vacation entitlement.
Working conditions for cross-border commuters
Employment contract
General information on the employment contract
By law, no special form is required for the employment contract, so in principle it is also possible to conclude an employment contract verbally. However, we recommend that the employment contract be drawn up in writing. However, the written form may be provided for in a collective employment contract CEA and is required by law for certain types of contract (e.g. apprenticeship contract or employment contract in the context of personnel leasing).
If an employment contract has been concluded for an indefinite period or for longer than one month, it is the employer’s responsibility to inform the employee in writing of the most important contractual points no later than one month after the start of the employment relationship. These are: Names of the contracting parties, start of the employment relationship, employee’s function, salary and any allowances, weekly working hours. This obligation on the part of the employer is particularly important if the employment relationship is not recorded in the form of a written employment contract.
What must be included as a minimum in the employment contract
The employment contract must contain at least the names of the employer and the employee, the start date of the contract, the work to be performed and the salary to be paid. Other important elements of the employment contract are the probationary period of max. three months and the notice period (see “Termination of the employment relationship”). In addition, the employment contract must not contain any immoral or unlawful tasks.
Changes may only be made if both parties agree
As with all contracts, important elements of a concluded employment contract can only be amended by mutual agreement between the parties. If an employer wishes to amend an essential clause of the employment contract (e.g. a salary reduction), he must present this amendment to the employee and grant him a cooling-off period. If the employee does not object within the cooling-off period, the amendment is deemed to have been accepted.
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Wages and salaries
There is currently no statutory minimum wage in Switzerland. Only a few collective employment contracts stipulate a mandatory wage standard. Nevertheless, it is clear that the wage level in Switzerland exceeds that of other European countries overall. In 2024, the gross median wage amounted to CHF 6665 per month. However, wage levels vary considerably depending on the economic sector. You can use the salary calculator provided by the Swiss Federation of Trade Unions (SGB) to determine the usual salaries for the seven major regions of Switzerland and over 40 sectors, taking into account your qualifications and age.
Today, salaries in Switzerland are still determined according to seniority. However, employers in both the public and private sectors are increasingly switching to the performance pay system. There is still a gender pay gap: On average, women’s wages are lower than men’s, regardless of their level of professional qualification.
In general, the social security contributions deducted directly from wages by the employer are lower than in the majority of European countries. The net salary (= gross salary minus contributions for occupational benefits, unemployment insurance, taxes, etc.) is therefore relatively high compared to the rest of Europe. However, the cost of living is also higher than in the rest of Europe. Overall, social security contributions deducted directly from wages amount to around 15 % of gross wages.
Swiss nationals pay their taxes at the end of the year. For foreign workers (without EU/EFTA C permit), the tax is deducted directly from the salary each month by the employer (withholding tax). The employer pays this directly to the tax authorities. The amount of tax varies from canton to canton.
Working hours
Maximum working hours and average weekly working hours
Swiss law sets the maximum weekly working time for employees in industrial companies, office staff, technical staff and other employees, including sales staff in large retail companies, at 45 hours. For all other employees, the upper limit is 50 hours per week. The normal working week in Switzerland is between 38.5 and 42.5 hours. If only full-time employees are taken into account, the average weekly working time in Swiss companies was 42 hours and 33 minutes (source: Federal Statistical Office from 2024).
In principle, the organization of working hours is the responsibility of the employer; the employer must observe the criteria imposed by law (rest periods, breaks, vacations, time off at weekends, ban on night and Sunday work, etc.) and consult the employees before determining the working time schedules in order to take into account the personal needs of the employees as far as possible. For further information, it is best to contact the employer directly or the competent authority.
Overtime
Overtime is defined as those hours that exceed the agreed working hours but remain below the maximum weekly working hours specified in the Labor Act. They must be compensated at 125 percent or, with the employee’s agreement, compensated by time off of the same duration. However, a written agreement between employer and employee may provide for a different solution. The Employment Act regulates overtime that exceeds the maximum weekly working time of 45 to 50 hours. They must be compensated at 125% or, with the employee’s agreement, compensated by time off of at least the same duration.
Temporary work performed at night or on Sundays or public holidays entitles the employee to special remuneration. For regular night work, for example, the Labor Act provides for an additional mandatory time credit of 10% for all employees. The time credit cannot be compensated financially (exception: on termination of the employment relationship).
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Vacation, public holidays, parental leave, etc.
Vacation entitlement
The statutory minimum duration of annual leave is 4 weeks for employees/apprentices in basic vocational training over the age of 20 and 5 weeks for employees and apprentices in basic vocational training up to the age of 20. This minimum duration can be increased by contractual agreement. Martin Häusler (Managing Director of B-Quadrat): “There are many companies near the border that voluntarily give their employees 5 weeks’ vacation.” Collective employment contracts (CECs) often provide for longer vacation periods, especially for employees who have reached a certain number of years of service and/or a certain age. On the other hand, the length of vacation can be reduced if a person has not worked for a long period of time, either because they have been unable to work due to a long-term illness, have taken a long period of unpaid leave or for other reasons. In general, vacation must be granted for the current year of service; at least two weeks must be taken as an uninterrupted quota. During the vacation, the employee receives the full salary. As long as the employment relationship continues, vacation cannot be compensated by financial compensation or other benefits.
Holidays
Public holidays in Switzerland are New Year’s Day (January 1), Ascension Day (Ascension Day), the national holiday (August 1) and Christmas (December 25). All other public holidays (Easter, Whitsun, Corpus Christi, etc.) are subject to cantonal regulations and may or may not be granted. An overview of public holidays in Switzerland by canton can be found in the related topics.
Medical certificate, continued payment of salary in the event of illness and maternity leave
Most employers require a medical certificate for sickness-related absences lasting longer than three consecutive days. In this context, the law specifies that the employer is obliged to continue to pay employees who are unable to work due to illness for a limited period of time. All working mothers are also entitled to paid maternity leave of 98 days (14 weeks) from the date of confinement. They receive a daily allowance of 80% of their salary for a maximum of 730 days. Cantonal provisions, personnel regulations and collective employment agreements (CEAs) that provide for more generous solutions in this regard are valid.
Special forms of leave
Finally, Switzerland has a whole range of different forms of leave that are guaranteed either by law or on the basis of collective labor agreements. These include youth leave, which guarantees all employees and apprentices in basic vocational training under the age of 30 who work for young people free of charge five additional days off work each year. Employers are also required to grant employees the usual days off work, e.g. for marriage, the birth of their child/children, the death of close relatives or a move to a new place of residence.
End of employment
Fixed-term and permanent employment contract
The fixed-term employment contract, the duration of which is determined by the two contracting parties (employer and employee), loses its validity after expiry of the agreed period, which does not necessarily lead to termination. If the contract is tacitly reinstated after the expiry of the agreed term, it is deemed to be an open-ended contract. This type of contract, the duration of which is not limited, can be terminated by either party subject to the notice period and termination date. The terminating party must justify its decision in writing at the request of the other party. Furthermore, the employer and employee can agree to terminate the employment relationship at any time. This is referred to as a termination agreement drawn up by mutual consent.
Trial period
During the probationary period, either party may terminate the contract at any time by giving seven days’ notice. Deviating agreements can be made by written agreement, standard employment contract or collective employment contract. However, the probationary period may not exceed three months. At the end of the probationary period, the employment contract may be terminated at the end of any month, subject to a one-month notice period in the first year of service, a two-month notice period from the second to the ninth year of service and a three-month notice period in one of the subsequent years of service. These notice periods may be modified by written agreement, standard employment contract or collective employment contract.
Retirement
If the employment relationship ends with retirement, special provisions apply. The normal retirement age is 65 for men and 64 for women. Anyone who has reached this age is entitled to draw an old-age pension (AHV). The flexible retirement system allows early retirement one or two years before the normal retirement age or an extension of employment by one to five years. In the event of early retirement, the pension is reduced for the entire period of entitlement; in the opposite case (extension), the pension is also increased. Payment of contributions for 44 years for men and 43 years for women entitles them to a full pension. In addition to the AHV (1st pillar), the occupational pension scheme (2nd pillar) is intended to provide insured persons with an income of 60% of their last insured earnings by adding the two pensions. Individual tied pension provision (3rd pillar) is voluntary and can be realized through life insurance, savings plans or supplementary insurance.
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