Swiss Rules on Self-Employment, Work Permits, Tax and Pensions
As a self-employed person you need to register with the authorities. However, granting of the status of self-employment is not automatic and usually four or more clients are needed. The exact requirements vary from canton to canton. When you are starting up you may not have the required number of clients which is where Swiss Labour Contractors can help.
In addition you will need to show that the economic risk is with you and not with your client, i.e. that you are not a “hidden employee”. You also need to expect at least a month before the approval is given, if at all, which is not helpful if you have a client who needs an immediate start. Again, Swiss Labour Contractors can help you here.
Work permits
Permits for persons from the most EU/EEA countries are straightforward to obtain, with the employer (Swiss Labour Contractors in this case) being responsible for organizing them with the Work Permit office of Foreign Workers Office in Geneva.
Nationals from non EU/EAA countries
Work permit applications can only be submitted by the employer who must demonstrate that he can not fill the open position with a worker of the local work force or recruit on the European labor market. The process of work permit application can take several months and there are no guarantees that a permit will be issued.
Social security
Social security deductions are made from your salary. These include unemployment insurance, disability insurance and old age/survivor’s insurance. In addition the employer must pay for professional accident insurance and family allowances.
Pension
Swiss Labour Contractors is partnered with a Swiss pension company and can offer either the minimum legal or a generous pension scheme to its employees. Swiss pension contributions are split into 3 “pillars” with the first 2 pillars being mandatory.
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Pillar
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Details
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Swiss Labour Contractors
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I
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State basic pension
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Deducted from payroll
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II
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Additional contributions with the objective of maintaining the current standard of living upon retirement.
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Enrollment in a pension scheme is mandatory above a certain salary level and deductions are made from salary
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III
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Voluntary individual contributions
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This is an individual decision. We can give references to insurance brokers who can assist.
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Pension planning can be a complex area and more details are provided on request to our clients.
Health insurance
Within 3 months of arriving in Switzerland it is mandatory to take out Swiss health insurance coverage with a Swiss insurance company. We have partnered with a Swiss company to obtain good rates and details are provided to our clients.