Working conditions
Working conditions in Switzerland are excellent. They are based upon a well-established social partnership between employer and employee. The first two or three months in a new job are usually seen as a trial period, with a period of notice of between a few days and a maximum of two weeks. Once employees have reached permanent status, the period of notice is generally one to six months.
Working hours are between 40 and 42.5 hours per week, with at least 4 weeks paid holiday a year. Pregnant women benefit from job protection, and receive at least 14 weeks maternity leave.
Salaries
Salaries are generally paid on a monthly basis, with the payment of a 13th monthly salary being widespread, and often being enshrined in law. Many companies have profit-sharing schemes, and pay out (voluntary) bonuses when business is good.
Allowances
In Switzerland, employees with children receive a mandatory child’s allowance for each child, the amount of which varies from canton to canton. In Basel-Stadt, many companies also pay an additional education allowance to employees with children. Other allowances vary from employer to employer.
Deductions
Contributions towards the obligatory old-age pension, "Alters- und Hinterlassenenversicherung", AHV (Old Age and Survivors Insurance), "Invaliditätsversicherung", IV (Invalidity Insurance) and the "Erwerbsersatzordnung", EO (Substitute Employment Regulation). Unemployment Insurance amounts to about 1.5%. Both employers and employees contribute to the social security system. Employees’ contributions are deducted directly from the monthly salary. Taxes are to be paid extra.
Social Security
The system of old age pensions in Switzerland is based on three pillars. The 1st and the 2nd pillars are obligatory for employees, and are managed by the state. The funds come from salary deductions. The Alters- und Hinterlassenenversicherung AHV/IV (Old Age and Survivors Insurance) is based on the principle of solidarity between the generations: Those working today and paying into the AHV, are paying the pension money for the elderly, who have paid their contributions while still working. The 2nd pillar consists the pension funds that are obligatory for all employees. Employees and employers pay the contributions into a personal account, where the pension capital is accumulated over the years. The 3rd pillar is voluntary, however. Contributions to a private retirement account or into a private pension insurance can be deducted from tax up to a statutory maximum level.
Work permits
As a rule, companies submit work permit applications directly to the cantonal authorities on behalf of their foreign employees. With employees from non-EU/EFTA countries, the application has to be passed on to the "Bundesamt für Ausländerfragen", BFA (Federal Office for Aliens). Find more information with the Office of Economy and Labour of Basel-Stadt.
