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23 January 2025

Work legislation changes in Switzerland in 2025: What expats and employers need to know

Written by

Written by: Hans

International Payroll Specialist

In 2025, significant updates to Swiss employment laws will shape working conditions for both local and international professionals. These reforms are particularly relevant for expats planning a move to Switzerland and for international companies navigating compliance when hiring locally.

This article highlights the most critical Switzerland work legislation changes 2025, focusing on tax reforms, leave policies, worker rights, and remote work provisions. We’ll also explore how an Employer of Record (EOR) service can simplify the transition for businesses and employees alike.

Key legislative changes in 2025

Below are the notable updates to Swiss employment laws confirmed for 2025. While some areas remain unchanged, these reforms mark a significant evolution in workplace regulations.

Minimum wage

Although Switzerland does not enforce a national minimum wage, cantonal regulations continue to play a critical role. In 2025, adjustments to minimum wage requirements are expected in certain cantons, including Geneva, where the hourly rate may increase slightly to keep pace with inflation.

For instance, Geneva’s current minimum wage of CHF 24 per hour, which is among the highest globally, could rise to reflect changing living costs. These updates underscore Switzerland’s commitment to ensuring workers maintain a high standard of living.

Tax regulations

Switzerland’s tax system, involving federal, cantonal, and municipal levels, will see incremental adjustments in 2025. Federal income tax rates are expected to remain stable, but several cantons plan to revise local tax brackets and allowances.

For example:

  • Federal tax rates: The maximum rate remains 11.5% on income.
  • Corporate taxes: The corporate income tax rate, which was at an effective 14.0% in 2024 (including federal tax), is set to rise to 14.7% starting in 2025 for profits exceeding CHF 10 million. In Geneva specifically, the effective income tax rate has already been adjusted from 14% to 14.7%, reflecting this broader change.
  • Cantonal variations: Some cantons, such as Zurich and Vaud, may introduce revised deductions or lower corporate tax rates to attract businesses.
  • Wealth tax: Cantonal reviews might impact rates on personal assets, a unique feature of Switzerland’s tax system.

For expats, understanding these layers of taxation is vital. Consulting a Swiss tax advisor or the Employer of Record can help ensure compliance and uncover potential deductions or reliefs.

Leave policies

In 2025, Swiss legislation may enhance parental leave benefits, a move aimed at fostering work-life balance.

Maternity leave currently stands at 14 weeks, with compensation at 80% of salary, capped at CHF 196 per day. Paternity leave, introduced in 2021, offers two weeks under similar terms. Discussions are underway to extend paternity leave by an additional week and to increase compensation caps to better align with average wages.

These changes reflect Switzerland’s ongoing commitment to gender equality and family-friendly workplace policies.

Worker rights and employee misclassification

Switzerland continues to address concerns related to worker classification, particularly for gig economy workers. By 2025, clearer guidelines are expected to distinguish between employees and self-employed contractors, reducing ambiguities and ensuring fair treatment.

The Swiss government has proposed stricter penalties for companies found misclassifying workers, emphasizing the importance of accurate payroll and contract management.

Remote work provisions

Remote work, or teletravail, has gained traction in Switzerland, particularly after the pandemic. In 2025, employers may face new obligations to formalize remote work arrangements, covering aspects like expense reimbursements and data security.

Key updates could include:

  • Cost contributions: Employers may need to reimburse home office expenses partially.
  • Data protection: Enhanced rules to secure sensitive company information in remote setups.
  • Cross-border implications: Tax treaties may be revisited for employees living in neighboring countries to address remote work complexities.

Implications for employees and employers

For employees and expats relocating to Switzerland

The 2025 legislative updates will enhance employment conditions for many workers. Expats moving to Switzerland can expect more clarity around tax obligations, leave entitlements, and remote work arrangements. However, they must stay informed about cantonal differences, particularly regarding minimum wage and local taxes.

For example, an expat living in Geneva may face higher living costs but benefit from a higher minimum wage than someone in Zurich. Understanding these nuances is crucial for financial planning and career development.

For companies

Foreign businesses hiring in Switzerland must comply with updated tax and labor regulations to avoid penalties. HR teams should prioritize compliance by revising employment contracts and payroll systems.

For companies employing remote workers across borders, adhering to evolving tax treaties and telework policies is essential to prevent legal complications.

Employer of Record (EOR) services as a solution

With the complexity of Switzerland’s employment laws, an Employer of Record (EOR) offers a practical solution for businesses and expats.

For companies

  • Payroll management: EORs ensure accurate payroll processing, including compliance with federal and cantonal tax requirements.
  • Legal compliance: Stay ahead of changes in worker classification, leave policies, and remote work provisions.
  • Onboarding: Simplify the hiring process with compliant contracts tailored to Swiss laws.

An Employer of Record (EOR) can be a pivotal partner for businesses looking to expand in a new country without the complexity of establishing a legal entity. By handling payroll, tax, and HR responsibilities, an EOR keeps your company aligned with local regulations while sparing you the administrative burden. This arrangement also lets your team concentrate on core objectives—such as hiring top talent and growing your market presence—instead of deciphering regional employment laws.

For employees and expats relocating to Switzerland

  • Streamlined relocation: EORs handle work permits, tax registration, and local employment contracts, easing the transition.
  • Accurate tax and benefit management: Avoid errors with expert guidance on tax deductions and social contributions.
  • Focus on integration: With administrative tasks managed, employees can concentrate on settling into Swiss life and their new roles.

An Employer of Record (EOR) can be a game-changer for expats who want to work in a new country without wrestling with unfamiliar administrative tasks. By handling work permits, payroll, and local tax obligations, an EOR helps you sidestep legal pitfalls and focus on your professional growth. This arrangement also ensures you receive the correct benefits and align with local labour standards, so you can settle in comfortably and devote your energy to thriving in your new environment.

Looking ahead: Preparing for 2025

Staying informed about Switzerland work legislation changes 2025 is essential for both expats and international companies. The evolving regulations around wages, taxes, and remote work highlight the importance of proactive planning.

Employer of Record (EOR) services simplify compliance, enabling businesses to hire talent confidently and expats to focus on their careers. Whether you’re navigating tax updates or preparing for changes in worker rights, an EOR ensures seamless adaptation to the Swiss legal landscape. Get in touch to explore how EOR services can benefit your business or your personal relocation plans.

If you have questions about these legislative updates or need assistance, get in touch to explore how EOR services can support your business or relocation plans.

This article provides general information and is not a substitute for legal advice. For specific guidance, consult a qualified Swiss legal professional.

Written by

Written by:

Hans | International Payroll Specialist

As a Swiss-German international payroll specialist based in Zurich, he helps foreign businesses navigate the complexities of Swiss payroll regulations. With extensive knowledge of both local and international payroll systems, he ensures smooth financial transitions for companies entering the Swiss market. Outside of work, he's an avid hiker who loves exploring the Swiss Alps, and he's also a dedicated urban gardener, tending to an impressive rooftop garden where he grows a variety of herbs and vegetables.

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