Professional Employer Organization (PEO) in Switzerland

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Global PEO in Switzerland

Switzerland is often heralded as a great country for remote workers. It’s got a central location in Europe, a high standard of living, and impressive cultural diversity. As a business, this means that Switzerland is the perfect place to start recruiting a truly global team. 

Gone are the days when hiring outside of your home country — or even your own city — wasn’t an option. Technology has made it easy to establish an organization filled with workers from all over the world. But what about the legalities of it all?

Well, that’s where a PEO like Skuad comes in. 

We don’t just make it possible to hire employees from around the world… we make it easy. 

With a PEO, businesses can seamlessly onboard, pay, and hire remote employees, with the same amount of effort (if not less!) than hiring someone who lives around the corner.

We hear you asking: “So, uh, what is a PEO in Switzerland”? Let us explain.

What is a PEO?

A Professional Employer Organization (PEO) makes it possible for small, medium, and even large businesses to hire workers around the world. 

Traditionally, if an organization wanted to hire an employee in Switzerland, they’d have to go through a lengthy and expensive process. Foreign businesses won’t face any restrictions when doing business in Switzerland, but the cost and time required can make setting up a business in Switzerland simply off-limits for some.

When you partner with a PEO in Switzerland, however, they do all the hard work for you — freeing your time back up to focus on talent acquisition and growth. 

A professional employer organization will handle the hiring and onboarding process for all of your global employees — not just those in Switzerland. This includes payroll management, tax compliance, sourcing and distributing competitive employee benefits packages, and other important HR functions.

With the help of a PEO, you can expand your business globally without worrying about geographical boundaries. Hiring the best talent from Switzerland will become an asset rather than a burden, as your PEO can shoulder all the time-consuming paperwork and logistics. 

Your PEO will make sure that all your employees in Switzerland, and the rest of the world, are paid correctly and that your organization is complying with local regulations. 

If this sounds like something that would help your business, get in touch today! A friendly Skuad team member will help you out with any questions that may come up while reading this article. 

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What are the benefits of using a PEO provider in Switzerland?

There are numerous benefits that come not only just from growing a global workforce, but also from partnering with a PEO to help you out. As you’ll find out below, a PEO can open a lot of doors for any company.  

Benefit from a global talent pool

Sometimes, when you’re hiring for a position in your company, the best recruit is located overseas. But that doesn’t mean you shouldn’t be able to hire them. 

Partnering with a PEO allows companies to expand their horizons, giving them the power to hire the best talent in the world, regardless of where they live. Remote working is the way of the future, and why should anyone be limited by their location?

Switzerland is a cultural hotspot, thanks to its central location and high standard of living. Two-thirds of the country’s residents speak more than one language. In other words, it’s the ideal place to start recruiting for a global team. And with a PEO, it’s a far easier process. 

Become a globally competitive employer

A sign of a good organization is when people around the world have you on their radar as an ideal place to work. This comes from a combination of factors: good company culture, attractive benefits and salary, respectable business practices, strong market presence, and so on. 

A PEO can help ensure that all your employees — whether they’re located in Switzerland or elsewhere — are being compensated fairly for their work. In fact, a PEO (like Skuad) will help you gain exclusive access to the best possible packages and attract qualified candidates.

Save on unnecessary costs

Hiring employees in Switzerland without using a PEO would cost your business a lot. And we’re not just talking about money –– you’ll be sinking plenty of time into learning and understanding the local Swiss tax and employment laws, which can be confusing at the best of times. 

You’d also need to hire in-house HR and legal counsel to help onboard new recruits, not to mention the fees associated with hiring Swiss employees as an international enterprise. Partnering with a PEO will get you further, faster, for a fraction of the cost.

Gain in-depth insights into new global markets

Keen to dip the toe of your business into the European market, but don’t quite know where to start? Well, Switzerland is the perfect place to find your feet. Hiring employees in Switzerland will give you valuable insights into the local market, and you’ll eventually be better equipped to expand into surrounding European countries. 

Become culturally aware

We live in a gloriously diverse world, which admittedly can be tricky to navigate in a corporate setting. It’s important to understand the impact of cultural differences when it comes to doing business abroad. Switzerland is a true melting pot of cultures — and it’s important you know what you’re doing.

For example, did you know that the country is made up of 26 separate cantons, each with its own standards, laws, languages, and even public holidays?! Thankfully, your PEO will always be on hand to keep you informed on the intricacies of doing business in Switzerland. 

Book a Skuad demo today to see our service in action and learn all about setting up a business in Switzerland.

Ensure that your business complies with statutory requirements in Switzerland

Things would be a lot easier if laws were the exact same in every country around the world. But, unfortunately, employment regulations can get very complex — and if you don’t comply with these laws, your business could face massive fines or even business bans. 

Everything from pay stubs to employer contributions and minimum leave is protected by law. As we said, there are different regions with different regulations. When hiring new employees in Switzerland, if you’re doing it without the help of a PEO, you must be aware of the various laws and restrictions in the canton where your employee lives.

Here are some general things to keep in mind when hiring in Switzerland. 

Payroll regulations in Switzerland

  • Employees are paid in the local currency, the Swiss Franc.
  • There are four official languages in Switzerland (German, French, Italian, and Romansh). But all employment contracts, interviews, and assignments should account for your employee’s native language.
  • The average employee in Switzerland works 40 to 42 hours per week.
  • Upon hiring, employers are required to have a written letter detailing the start date, job function, wage, and the number of hours employees will work each week.
  • Companies only need to pay severance if employees are age 50 or older –– but employees must get at least a month’s termination notice. 

Employer contributions

  • Bonuses and the ‘13th-month salary’ are common, but not required. 
  • Employers and employees are jointly responsible for social tax contributions. The employer’s rate ranges from ~14% to ~42%.

Employee contributions

  • The federal income tax rate for individuals spans from 0.77% to 11.5%, depending on the canton (district). For example, a single taxpayer who has a salary of 55,000 CHF  (approx. $57,500 USD) will pay CHF 217.90, plus 2.64% of the amount over CHF 41,400.
  • Employees contribute between ~14% to ~28% to social tax.


  • Each canton has its own sick leave regulations but generally, employees are entitled to three weeks per year. 
  • Women must get a minimum of eight weeks off after giving birth and are legally entitled to 14 weeks of paid maternity leave.
  • Fathers receive two weeks of paid paternity leave. 
  • Every employee gets four weeks of holiday time each year, five if the employee is 20 or younger.
  • National Day on August 1 is the only federal holiday, but cantons have their own local and public holidays.

Learn more about how Skuad’s PEO services can help your business to grow by booking a demo today.

What does it cost to build a team in Switzerland?

Company incorporation in Switzerland

Unlike many other countries, you do not need to establish a company or legal entity in Switzerland to hire an employee. But that doesn’t mean it’s easy!

Most companies that want to hire in Switzerland — without using a PEO — will set up a Swiss branch of their company. However, this requires you to pay local taxes and maintain at least one Swiss resident with legal authority.

For this, you’ll need to comply with the regulations of the canton where your organization is based, plus have all the legal documentation, contracts, and established financial accounts prepared.

Or, you could partner with a PEO. 

PEO in Switzerland

A PEO doesn’t just make it far easier to hire employees in Switzerland –– it also costs a fraction of the amount you’d need to establish a branch.

At Skuad, we offer free start-up and cancellation at any time, with no hidden fees. You can start to onboard and pay international employees for just $19 per month. 

We also offer Employer of Record services for a more hands-on process. This involves hiring international employees on your behalf as well as managing payroll, benefits, and compliance. For EOR, prices start from $199 per month.

Skuad also offers custom plans for enterprise businesses that may need a more tailored approach.

Ready to join the Skuad?

If you’re ready to start hiring talent in Switzerland — without any stress or headaches — get in touch today. In one short demo, you’ll see how easy it is to start building your global team with Skuad at your side. 

Employ contractors and employees in 160+ countries

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Employ contractors and employees in 160+ countries

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