Overview
Hiring your first employee in Switzerland , the complete checklist
Hiring your first employee in Switzerland triggers a chain of registrations that catch new employers off guard. Within days of the start date you must register the employee with the cantonal Ausgleichskasse for AHV/IV/EO contributions, sign up for mandatory accident insurance through Suva or a private UVG provider, enrol the employee in occupational pension (BVG/LPP) once annual salary crosses CHF 22,680, and arrange source tax (Quellensteuer) withholding for non-Swiss nationals via the Federal Tax Administration. On top of these federal duties, each canton has its own minimum wage rules (Geneva enforces CHF 24.48/hour, others rely on collective bargaining agreements only), notice periods scale with seniority, and you must issue a Lohnausweis salary certificate within 30 January of the following year. This guide walks through every step in the order you'll actually do them, and flags the deadlines that trigger penalties if missed.
What this guide covers
- Pre-hire registrations: Which authorities you sign up with before day one.
- Contract requirements: What Swiss law expects on paper.
- Social insurance setup: AHV, BVG, UVG, and accident cover at a glance.
- Payroll mechanics: How monthly pay, deductions, and the Lohnausweis work.
Missing BVG enrolment is the most common new-employer mistake
Many first-time employers correctly handle AHV and UVG but forget BVG/LPP enrolment until the employee asks about their pension. The BVG entry threshold (CHF 22,680 in 2025) triggers enrolment from the employment start date, not the day you remember. If you missed it, the Stiftung Auffangeinrichtung BVG (safety-net foundation) charges back-premiums plus interest covering the entire missed period , typically 7-12% of the employee's salary for the missed months. Configure your payroll software to flag the threshold the moment a salary exceeds it.
Family allowances (Kinderzulagen) — separate insurance, often forgotten
Every Swiss employer must enrol in the cantonal family allowances scheme (Familienzulagen / allocations familiales) as soon as the first employee starts. Premiums vary by canton (1-3% of payroll), are paid entirely by the employer, and finance child + training allowances paid back to employees with dependents. The scheme is administered through the same Ausgleichskasse as AHV in most cantons (one combined invoice). Missing this enrolment is common with first-time employers because the employee themselves usually does not flag it — the allowance is automatic once registered. The Federal Social Insurance Office publishes the per-canton premiums each January; budget around 1.5-2.5% of gross payroll as a working estimate. Late enrolment triggers back-premiums but no penalty if you self-report.
Probation period — six months is the maximum allowed
Swiss employment contracts default to a one-month probation period (Probezeit / temps d'essai). The Code of Obligations allows extending probation by written agreement up to a maximum of three months — six months total is unenforceable and any clause beyond three months reverts to the federal cap. During probation, either party can terminate with seven days notice with no severance. After probation ends, statutory notice periods kick in: one month in year one of service, two months in years 2-9, three months thereafter. Probation does not pause for vacation but it does pause for sickness or accident if the absence is medically certified. First-time employers often skip the written probation extension and discover at the end of month one that they have committed to a long-term contract before fully assessing the hire. Spell out probation in the offer letter and the signed contract from the start.
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