Hiring Your First Employee in Switzerland: Employer Duties
Published 2026-10-19 · Updated 2026-10-19 · 2 min read · 2 sources · Verified Swiss federal benchmarks
Direct answer
Before payroll runs, register as an employer with an AHV compensation fund and take out UVG accident insurance. BVG pension becomes mandatory when annual salary exceeds CHF 22,680.
Key facts
- Employers must register with an AHV compensation fund before paying wages.
- UVG accident insurance is mandatory for employees.
- BVG occupational pension is required when salary exceeds CHF 22,680 per year.
- Payroll deducts AHV/IV/EO, ALV, and contributions shared with the employee.
- Employees receive an AHV number through employer registration with the fund.
Before the first payslip
Hiring triggers social insurance duties even in a one-person GmbH if a genuine employment relationship exists. Draft a written contract reflecting Swiss mandatory rules and cantonal standard terms where they apply.
Collect the employee’s AHV number or register the person through your compensation fund when none exists yet.
Decide gross salary knowing employer contributions sit on top of net pay negotiations.
Mandatory registrations
Complete insurer and fund setup before the first wage payment. Retroactive registration is possible but creates administrative catch-up and employee questions.
Monthly declarations to the AHV fund become part of your rhythm once payroll starts.
- 1Register the company as an employer with an AHV compensation fund.
- 2Take out UVG coverage for occupational and non-occupational accidents.
- 3Set up BVG with a pension provider if salary exceeds CHF 22,680 annually.
- 4Report the employee to the compensation fund and start monthly declarations.
- 5Issue payslips showing gross, deductions, and net pay.
Cost snapshot for one hire
Use the table as a trigger list, not as a full payroll quote. Cantonal source tax may apply depending on employee permit status.
BVG providers quote contribution scales once you know insured salary above the entry threshold.
| Obligation | Trigger | Employer action |
|---|---|---|
| AHV/IV/EO + ALV | First employee | Register with compensation fund; split contributions |
| UVG accident | First employee | Policy with approved insurer |
| BVG pension | Salary > CHF 22,680/year | Join pension fund; share contributions above entry threshold |
| Source tax | Employee without C permit in some cases | Withhold at cantonal rates if applicable |
Worked example: first hire above BVG threshold
A Lausanne GmbH hires a designer at CHF 6,800 gross per month, which exceeds CHF 22,680 annually.
The company registers with an AHV fund, activates UVG with an insurer, and joins a BVG plan before month one payroll.
Payslips show shared AHV and ALV deductions plus BVG contributions. Employer costs exceed gross salary once social charges are included.
Common mistakes
Paying cash before fund registration leaves both parties without proper AHV coverage.
Treating BVG as optional when salary crosses CHF 22,680 creates pension fund compliance gaps.
Skipping written accident insurance exposes the company to mandatory UVG liability.
Using net salary offers in contracts without stating gross confuses benefit calculations.
FAQ
- Can a GmbH director be the first employee?
- Yes if an employment relationship exists. Social insurance rules apply like any other hire.
- Is BVG optional below CHF 22,680?
- Mandatory enrollment is not required below the threshold, though some funds offer voluntary plans.
- Who pays UVG premiums?
- Employers cover occupational accident insurance; non-occupational accident premiums are usually split by law and contract.
- Do I need payroll software?
- Not legally, but accurate declarations to the AHV fund and insurers are required. Many SMEs use payroll providers.
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