Hiring your first employee: guide
Hiring your first employee in Switzerland means putting several registrations and insurances in place. Here is the checklist to do it correctly.
How it works
Draw up the employment contract
Prepare a written employment contract setting out salary, working hours, notice periods and duties.
Register with the AHV compensation office
Register your employee with the AHV compensation office for old-age, survivors' and disability insurance contributions.
Arrange the pension fund (BVG)
Affiliate with a pension fund and enrol your employee in occupational pension (BVG) cover where required.
Take out accident insurance (UVG)
Conclude mandatory accident insurance (UVG) covering occupational and, depending on hours, non-occupational accidents.
Handle withholding tax if applicable
If your employee is subject to withholding tax, register them and deduct the tax directly from their salary.
Run payroll
Set up payroll to calculate salaries, deduct contributions and issue payslips and the annual salary certificate.
We'll take care of it
Answered in short
Which insurances are mandatory for employees?
AHV/IV/EO, unemployment insurance, accident insurance (UVG) and, above the entry threshold, occupational pension (BVG) are mandatory. We make sure every registration is in place.
Do I have to deduct withholding tax?
Withholding tax applies to certain employees, typically foreign nationals without a settlement permit. If it applies, you must register the employee and deduct the tax from their salary.