Posted Workers in Switzerland

Posted Workers in Switzerland: The Ultimate, In-Depth Guide for International Companies in 2025 with My Swiss Company SA

In 2025, Switzerland continues to assert itself as a vital economic platform, offering unparalleled stability, attractive taxation, and access to a high-value market. For international companies looking to undertake specific projects, temporary assignments, or test the market without heavy and immediate establishment, posted workers in Switzerland represent a remarkably flexible strategy. This mechanism allows a foreign company to send its own employees to Switzerland for a defined period, while maintaining the contractual link and social security affiliation with the country of origin.

However, implementing a posted worker assignment in Switzerland is far from a simple formality. It is subject to a complex set of legal, administrative, social, and fiscal rules specific to the Confederation. Ignoring or misinterpreting these regulations can lead to severe penalties, unforeseen costs, and major operational disruptions for international companies sending workers to Switzerland. It is precisely to navigate this complexity that the expertise of a leading fiduciary like My Swiss Company SA, a recognized specialist in posted workers in Switzerland, becomes not only valuable but indispensable. This article aims to be your exhaustive reference, exploring every facet of posted worker assignments in Switzerland for 2025, and highlighting how our support guarantees your compliance and success.

1. Deep Dive into Posted Workers in Switzerland: Definition, Objectives, and Legal Foundations

A posted worker assignment in Switzerland is not a simple transfer of personnel, but a distinct legal regime. It is characterized by an employee, bound by an employment contract to their foreign employer (the “sending” company), being temporarily sent to Switzerland (the “host” country) to perform a specific task or project, under the authority and direction of the original employer. The initial employment contract is neither suspended nor terminated; the employee does not sign a new contract with a Swiss entity, and their subordinate relationship remains with the foreign company.

The primary legal framework governing posted workers in Switzerland is the Federal Act on Posted Workers (LDet) and its implementing ordinance (OLDét). These texts aim to protect the Swiss labor market against wage dumping and and ensure compliance with local working conditions. Furthermore, bilateral agreements between Switzerland and the European Union (EU) / European Free Trade Association (EFTA) on the free movement of persons play a crucial role in simplifying certain procedures for citizens of these states, particularly concerning social security. Understanding these foundations is the first step toward successful posted worker assignments in Switzerland.

2. Procedures and Administrative Formalities for Posted Workers in Switzerland

Administrative compliance is the cornerstone of smooth posted worker assignments in Switzerland. Requirements vary depending on the duration and nationality of the worker.

2.1. Prior Notification for Posted Workers in Switzerland (Assignments of less than 90 days per year)

For most sectors, if a posted worker assignment in Switzerland by an EU/EFTA employer does not exceed 90 effective working days per person during a calendar year (from January 1 to December 31), a simple prior notification is sufficient.

• Modalities and Deadlines:This notification must be submitted online via the dedicated portal of the State Secretariat for Economic Affairs (SECO). The general rule is to submit it at least 8 calendar days before the start of the activity. However, this 8-day rule does not apply to “sensitive” sectors.
• Sectors Requiring Notification from Day One:To combat wage dumping more effectively, certain high-risk sectors are subject to the notification requirement from the first day of work. This means there is no grace period, even for a single day’s assignment. These sectors include, but are not limited to, construction and civil engineering, hotels and restaurants, cleaning companies, security and surveillance companies, gardening, forestry, and agriculture. Any assignment in these areas requires prior notification, regardless of the number of days.
• Detailed Information:The notification requires precise information: the worker’s full identity (name, surname, date of birth, nationality), the foreign employer’s contact details, the exact location and duration of the assignment in Switzerland, the precise nature of the activities, confirmation of compliance with Swiss working conditions and wages, and the contact details of a person in Switzerland accessible to the authorities.
• Penalties for Non-Compliance:Failure to comply with this prior notification obligation for posted workers in Switzerland can result in significant administrative fines (ranging from CHF 5,000 to CHF 30,000 per case), work prohibitions in Switzerland for the worker and the company, and reporting to competent authorities in the country of origin.

2.2. The A1 Certificate: The Essential Document for Social Security for Posted Workers in Switzerland

The A1 certificate is a crucial and often misunderstood document in the context of posted workers in Switzerland for EU/EFTA nationals.

• Role and Objective:Issued by the social security institution of the sending country (e.g., CPAM in France, Krankenkasse in Germany), the A1 certifies that the posted worker remains subject to the social security scheme of their country of origin for the duration of their posting to Switzerland.
• Avoiding Double Social Contributions:Its possession is crucial to prevent the employer and the worker from being forced to contribute to Swiss social insurance (AHV/IV, ALV, etc.) in addition to those of their country of origin. The A1 guarantees that the worker retains their acquired social rights (pension, unemployment, sickness-maternity, etc.) in their country of origin, even when temporarily working in Switzerland.
• Obligation to Present:Swiss control authorities (particularly labor inspectors) are authorized to demand the presentation of the A1 certificate during inspections at construction sites or workplaces. The absence of this document can lead to reassessments of contributions and fines.
• Obtaining Deadlines:It is imperative to request the A1 sufficiently in advance, as processing times can vary depending on the issuing institutions in the country of origin.

2.3. Work Permits for Posted Workers in Switzerland (beyond 90 days and outside EU/EFTA)

When a posted worker assignment in Switzerland exceeds the 90-day annual exemption, or when it concerns third-country nationals (outside EU/EFTA), a Swiss work permit becomes imperative.

• For EU/EFTA Nationals beyond 90 days:The application must be made to the competent cantonal migration authority. The most common permits are the L permit (short-term permit, generally valid for an assignment up to one year) or the B permit (annual residence permit, renewable). These permits are subject to specific conditions and sometimes federal quotas (though less restrictive for EU/EFTA).
• For Third-Country Nationals (non-EU/EFTA):The rules are significantly stricter. A work permit is required from the first day of activity, without any exemption period. Granting is subject to very restrictive criteria: the worker must be highly qualified (manager, specialist), the application must prove the absence of an equivalent candidate in the Swiss and European labor market, and the assignment must present a significant economic interest for Switzerland. Furthermore, these permits are subject to very limited federal and cantonal quotas. Obtaining such a permit for posted workers in Switzerland is a complex and often lengthy process.

3. Working Conditions and Salaries for Posted Workers in Switzerland: Respecting Local Standards

The guiding principle for posted workers in Switzerland is absolute respect for Swiss working conditions and salaries, to ensure fair competition and prevent any form of social dumping.

3.1. Compliance with Customary Conditions and Specific Minimum Wages for Posted Workers in Switzerland

The Posted Workers Act requires that posted employees benefit from at least the working and remuneration conditions that are customary in the professional branch and the relevant region in Switzerland.

• Minimum Wages:In the absence of a national minimum wage in Switzerland, the remuneration of posted workers must be at least equivalent to the wages defined by:
  • Collective Bargaining Agreements (CBAs):A large number of business sectors are governed by CBAs (e.g., construction, industry, cleaning, hotels and restaurants, retail, services). These CBAs set binding minimum wages, often differentiated by function, qualification, experience, and region. These amounts are generally significantly higher than cantonal minimum wages and must be strictly adhered to for posted workers in Switzerland.
  • Cantonal Minimum Wages:Several cantons have introduced their own legal minimum wage by referendum. For 2025:
    • Geneva:CHF 24.48/hour (approximately CHF 4,454/month for 42 hours/week).
    • Neuchâtel:CHF 21.31/hour.
    • Jura:CHF 21.40/hour (rate maintained for 2025).
    • Basel-Stadt:CHF 22.00/hour.
    • Ticino:CHF 19.00/hour.
    • Zurich:A minimum wage of CHF 23.90/hour has been voted on, and its entry into force is expected during 2025 or 2026. It is crucial to apply the most favorable wage to the worker between the CBA and the cantonal minimum wage (if applicable).
  • Working Hours and Overtime:The provisions of the Labor Act and CBAs regarding maximum working hours (generally 45 or 50 hours per week depending on the sector) and overtime pay must be respected.
  • Holidays and Public Holidays:The posted worker is entitled to the minimum paid leave provided by Swiss law (at least 4 weeks per year, 5 weeks for young people up to 20 years old). Public holidays recognized in the canton of activity must also be respected and remunerated. My Swiss Company SA performs salary compliance audits for each posted worker assignment in Switzerland.

4. Social Security and Compulsory Insurance for Posted Workers in Switzerland

Managing social coverage is a technical and crucial aspect of posted worker assignments in Switzerland.

4.1. Maintaining the Original Social Scheme for Posted Workers in Switzerland (EU/EFTA)

For EU and EFTA nationals, the fundamental principle for posted workers in Switzerland regarding social security is the maintenance of affiliation with the system of the country of origin. This is made possible by Regulation (EC) No 883/2004 and its implementing regulation (No 987/2009) on the coordination of social security systems.

• A1 Certificate:As detailed previously, the A1 Certificate is official proof that the worker continues to contribute to and benefit from the social insurance of their sending country (pension, sickness, unemployment, invalidity, etc.). This avoids double social taxation, which is a major economic advantage for posted workers in Switzerland. The maximum duration of this maintenance is generally 24 months, with possibilities for exceptional extensions.
• Non-EU/EFTA:For third-country nationals, social security rules are different. In the absence of specific bilateral agreements, the posted worker could be subject to double contributions or be required to affiliate with the Swiss social system from the first day of their posting to Switzerland.

4.2. Mandatory Supplementary Insurances in Switzerland for Posted Workers in Switzerland

Regardless of the A1 Certificate, certain specific insurances are mandatory in Switzerland:

• Basic Health Insurance:In principle, anyone residing in Switzerland (even temporarily, including a posted worker in Switzerland) must take out compulsory basic health insurance. Exemptions may be granted under certain conditions if the worker proves equivalent coverage through their foreign insurance, but the procedure is strict.
• Accident Insurance (LAA/UVG):The sending employer is legally obliged to cover the worker for occupational accidents and diseases. If the working hours exceed 8 hours per week with the same employer, non-occupational accident insurance is also mandatory. My Swiss Company SA assists you with optimal coordination of all these insurances during posted worker assignments in Switzerland.

5. Taxation of Posted Workers in Switzerland: Navigating Withholding Tax and Double Taxation Treaties

The taxation of salaries of posted workers in Switzerland is a complex area that requires careful analysis to avoid double taxation and ensure compliance.

5.1. Withholding Tax and the Crucial Role of Double Taxation Treaties for Posted Workers in Switzerland

• Withholding Tax:Salaries of foreign workers who are not Swiss tax residents, but who receive income from gainful employment in Switzerland, are generally subject to withholding tax in Switzerland. This tax is directly deducted from the gross salary by the employer (or their Swiss tax representative) and paid to the cantonal and communal tax authorities.
• 183-Day Rule and Double Taxation Treaties (DTTs):Switzerland has signed an extensive network of Double Taxation Treaties with over 100 countries (including almost all EU/EFTA members). These DTTs aim to prevent double taxation of income. A common clause is the “183-day rule”: a salary paid to a posted worker will only be taxable in their country of origin if three cumulative conditions are met:
  1. The worker does not stay more than 183 days in the territory of the state of activity (Switzerland) over a 12-month period.
  2. The remuneration is paid by an employer who is not a resident of the state of activity (Switzerland).
  3. The burden of the remuneration is not borne by a permanent establishment that the foreign employer has in Switzerland. If one of these conditions is not met (especially if the stay exceeds 183 days), the right to tax the salary shifts to Switzerland. Prior tax analysis is essential for eachposted worker assignment in Switzerland.
• Tax Deductions:Certain deductions for professional expenses (e.g., meal expenses, double housing costs, travel between home and workplace) may be possible, reducing the taxable base. The complexity of these withholding tax rules for posted workers in Switzerland underscores the importance of specialized tax advice.

6. Maximum Duration and Extension Conditions for Posted Workers in Switzerland

The temporary nature of posted worker assignments in Switzerland is strictly defined by their duration.

• Standard Period of 24 Months:For EU/EFTA nationals, the posting period during which the worker can maintain their original social security affiliation is generally limited to 24 consecutive months.
• Exceptional Extensions:Extensions beyond 24 months are possible, but they are granted on an exceptional basisand require strong justification and the explicit agreement of the social security institution of the country of origin. This is not an automatic right, and each request is examined on a case-by-case basis. Obtaining an extension for a posted worker in Switzerland can be complex.

7. Posted Workers in Switzerland vs. Expatriation: Crucial Distinctions for a Mobility Strategy

It is fundamental to clearly differentiate posted worker assignments in Switzerland from expatriation, as these two statuses entail radically different legal, social, and fiscal consequences.

• Posting:
  • Nature:Short to medium-term assignment, inherently temporary.
  • Employment Contract:The original contract with the employer in the country of origin is maintained.
  • Social Security:Affiliation retained in the country of origin (A1 Certificate).
  • Taxation:Specific regime potentially influenced by the 183-day rule of DTTs.
  • Objective:Performance of a specific task or project in Switzerland, without the employee’s intention of permanent establishment. A posted worker assignment in Switzerland is an agile solution.
• Expatriation:
  • Nature:Long-term or permanent move to Switzerland, with an intention of establishment.
  • Employment Contract:Generally, a new employment contract is concluded directly with a Swiss entity (subsidiary, newly created company). The original contract may be terminated or suspended.
  • Social Security:Full and mandatory affiliation to the Swiss social security system (AHV/IV, OPA, compulsory health insurance LAMal).
  • Taxation:The worker becomes a Swiss tax resident and is taxed on all their worldwide income in Switzerland.
  • Objective:Full integration into the Swiss labor market and social system. Misqualification of status can lead to significant tax and social adjustments for both the company and the worker.

8. My Swiss Company SA: Your Indispensable Partner for Posted Workers in Switzerland

Managing posted worker assignments in Switzerland is an inherently complex process, fraught with legal, fiscal, and administrative subtleties unique to the Confederation. International companies absolutely need a trusted partner with in-depth local expertise to navigate these challenges. My Swiss Company SA, as a leading Swiss corporate services provider and recognized specialist in posted workers in Switzerland, is your strategic ally to secure and simplify all these procedures.

Our services are specifically designed to meet all the requirements for posted workers in Switzerland, offering a complete solution that covers all aspects:

• Prior Legal and Tax Advice: In-depth analysis of your specific situation and the objectives of the posted worker assignment, to determine the best legal and tax strategy, including risk assessment and structure optimization.
• Comprehensive Administrative Procedure Management: We handle the entire preparation, submission, and follow-up of prior notifications with SECO. Furthermore, we manage complex work and residence permit applications (L, B permits) with cantonal and federal authorities for long-term postings to Switzerland or for non-EU/EFTA nationals.
• Salary and CBA Compliance: We conduct rigorous audits of proposed working conditions and salaries to ensure absolute compliance with cantonal minimum wages and the salary scales of Collective Bargaining Agreements (CBAs) applicable to the sector of the posted worker assignment in Switzerland.
• Social Security Optimization:Our expertise includes assistance with obtaining and managing A1 certificates, coordination with Swiss and foreign social security organizations, and advice on mandatory health and accident insurance for posted workers in Switzerland.
• Tax Expertise and Withholding Tax Management: We guide you through the intricacies of taxation for posted workers in Switzerland, manage the calculation and payment of withholding tax, and ensure the correct application of Double Taxation Treaties to avoid excessive taxation.
• Posting-Specific Payroll Management: We offer a complete payroll service for posted personnel, ensuring perfect compliance with the specificities of Swiss legislation regarding deductions and declarations.
• VAT Fiscal and Administrative Representation: My Swiss Company SA can act as your fiscal representative and main point of contact for all communications with Swiss authorities, thereby simplifying your administrative obligations related to posted workers in Switzerland.

By entrusting the management of your posted worker projects in Switzerland to My Swiss Company SA, you choose peace of mind, legal security, and the assurance of impeccable compliance. We enable you to fully focus on your core business and the success of your assignments in Switzerland. Your success is our primary commitment.