Swiss payslip: A guide!

Find out how to draw up a Swiss payslip in accordance with the regulations, and how to optimise your human resources management more broadly!

How do you prepare a payslip in Switzerland?

First of all, you should be aware that in Switzerland, you are free to determine the type and level of pay for your employees. Whilst there is no national minimum wage (only four cantons have introduced one), you are still required to comply with the legal standards in force in the region and in the relevant sector, whether at cantonal level or under collective labour agreements (CLAs).

Legal requirements to be met

All the general provisions relating to Swiss labour law are set out in the Swiss Code of Obligations (CO). It is on the basis of this code that the various cantons draw up standard employment contracts (CTT), which provide all the necessary details regarding the various elements of your employees’ employment contracts.

Good to know: The standards set out in the collective labour agreements can generally be adjusted by you, in accordance with sections 361 and 362 of the Swiss Code of Obligations.

Legally, employers are required to pay their employees’ wages at the end of the month, although Article 323 of the Labour Code states that alternative arrangements are permissible. 

The information that must appear on a Swiss payslip

Much simpler than a French payslip, for example, a Swiss payslip contains only a limited number of details, the most important of which are, naturally, the employee’s personal details, their insurance number and the pay period covered by the payslip in question.

Under the provisions of the CO, employers are required to provide their employees with a written payslip, which must give a clear and reasonably accurate overview of:

• his gross salary;
• his take-home pay;
• his allowances (overtime, etc.);
• his deductions (advances, insurance, etc.)

Please note: If some or all of your employees are cross-border workers, it may be particularly beneficial for your business to pay their salaries in foreign currency!

Child benefit must also be shown on the payslip when it is paid, although this again depends on the canton (in terms of both eligibility criteria and the amount), although employers may choose to pay it themselves.

Withholding tax must also be shown on the payslip if the employee is liable for it. It is deducted directly by the employer from the employee’s gross pay.

Finally, a significant portion of the Swiss payslip relates to the various social security deductions, namely:

• Old Age and Survivors’ Insurance (AVS), which amounts to 4.35% for both the employee and the employer;
• Disability Insurance (DI), which amounts to 0.7% for both the employee and the employer;
• the Loss of Earnings Allowance (LOEA), which amounts to 0.25% for both the employee and the employer;
• Unemployment insurance (AC), the basic rate of which is 2.2% but varies depending on the employee’s salary;
• the Occupational Pensions Act (OPA), the amount of which varies according to the employee’s salary level.

You are now familiar with the legal requirements and the key information that must appear on a Swiss payslip. However, bear in mind that managing your employees’ payroll is just one aspect – albeit a particularly time-consuming one – of the broader management of your workforce. It is likely that you would benefit from outsourcing your Human Resources (HR) management…

How can you support your employee, from the moment they join the company until they leave?

To ensure a new employee settles in successfully, enables them to thrive and, should they leave the company, ensures their departure goes smoothly, a number of factors must be taken into account. 

Among these, the technical and administrative management of human resources should not be overlooked. Using an external service provider can prove to be an excellent solution…

What is an integrated and comprehensive approach to HR management?

Although your company’s HR department possesses a wide range of skills (legal, tax, employment law, etc.), it unfortunately has to deal with a heavy administrative burden that can be extremely time-consuming, particularly when it comes to certain tasks relating to the day-to-day management of staff. 

To address this issue, specialist firms such as Swiss Risk & Care are implementing integrated, comprehensive approaches covering five complementary areas of HR management.

Payroll management:

• Printing payslips

• Preparation of monthly and annual legal documents

• Reporting and HR support

Absence management:

• Recording and managing absences from day one

• Liaison with the insurer (claims, compensation, disputes)

• Link to payroll and occupational pension schemes

• Data management and analysis

Health insurance administration:

• Insurance cover and support in the event of a dispute

• Advice and information for employees

• Management of excesses and invoicing (where applicable)

Handling administrative tasks:

• Assistance with legal procedures: AVS, APG, AC, AI – Family Allowances – Work permits

Day-to-day management of pension schemes:

• Support during life changes (marriage, divorce, retirement, etc.)

• Management of new hires, departures and transfers

• Secure links to payroll

• Specialist and tax advice on home ownership schemes, buy-back schemes or relocation

Working with a competent service provider who can offer advice as part of a comprehensive approach can make all the difference.

What constitutes successful HR outsourcing?

For an HR outsourcing project to be successful, the service provider should ideally be selected through a tender process, and the technical resources made available as part of the service must be clearly specified.

A service provider that operates in accordance with standards set by an external auditor will be a true guarantee of quality for your business. As well as being an excellent working tool, such a service provider will also offer you impeccable confidentiality and a very high level of security. 

Finally, because the human aspect should not be underestimated. It is essential that the team of consultants assigned to you is stable and responsive to your needs.

If you’re looking to outsource all or part of your company’s HR functions, discover our partner Swiss Risk & Care’s comprehensive solution today!