Switzerland offers numerous benefits to its employees, including flexible contracts, strong worker protections, and high wages. Despite a relatively protected labor market, job opportunities for foreigners are available, especially in fields with a local labor shortage, such as IT, engineering, and healthcare. This article provides an overview.
Key facts about the Swiss labor market
The unemployment rate
According to official data, Switzerland's unemployment rate is 2.5%, among the lowest in 20 years. The State Secretariat for Economic Affairs reported this in a press release in January 2024.
Employment and growth sectors
According to the latest update from the EURES (European Employment Services) platform, 77.4% of employees work in the service sector, 20.2% in industry and crafts, and about 2.3% in the primary sector.
Employment growth is particularly strong in the secondary sector (industry and construction) and the tertiary sector (services).
EURES reports that the largest increase was in "accommodation and food services." In terms of job numbers, the "health and social services" sector saw the most significant growth. The "construction" sector also experienced a notable increase.
Growth sectors for expatriates in Switzerland
Switzerland is particularly renowned for its banking and finance, pharmaceuticals and biotechnology, precision industry, and medical technology sectors.
Qualified expatriates with strong skills in these areas will find many job opportunities.
However, the sector facing the most significant labor shortage is health and personal care, with a notable shortage of doctors and care workers.
In some regions, Switzerland is also facing recruitment challenges in the hotel and catering sectors, especially following the COVID-19 pandemic.
Other sectors experiencing staff shortages include education, technical fields (skilled workers), logistics, and IT.
The foreign workforce in Switzerland
Approximately two-thirds of foreign nationals working in Switzerland come from European Union (EU) member states, with Italy, Germany, Portugal, France, and Kosovo being the most represented countries. In the first quarter of 2023, Switzerland also had 386,331 cross-border commuters, mainly from neighboring countries.
Employment contracts in Switzerland
In Switzerland, employment can be governed by individual contracts or by collective labor agreements. These agreements are negotiated between employers and workers' associations (such as trade unions) and establish minimum conditions for employment.
Good to know:
Oral contracts are valid under Swiss law. This means that the Swiss Code of Obligations (CO) applies in full without allowing for modifications in writing. To review the Code of Obligations, which governs employment contracts, click here.
Working conditions in Switzerland
Legal number of working hours per week
The number of working hours per week must be outlined in the employment contract. If the contract doesn't specify working hours, the Swiss Code of Obligations states that they should be determined by common practice.
According to EURES, the average number of working hours per week in Switzerland is 41.07, over an hour more than the EU average.
Hours worked beyond the contractually agreed amount are considered overtime.
Vacations
In Switzerland, employees are entitled to at least four weeks of paid vacation each year. Depending on the applicable collective bargaining agreement, they may receive additional days off.
Typically, there are nine public holidays each year, though some cantons may offer more.
If you fall ill, you don't need to provide a medical certificate on your first day of absence; you only have to submit one if you're still unwell after three days. This means you don't have to visit a doctor if you think you'll recover within a day or two.
When a child is born, the mother is entitled to 14 weeks of paid leave, while the other parent can take two weeks of paid leave.
The probation period
Open-ended contracts typically include a one-month trial period, but employers can extend it to up to three months if agreed upon in writing by both parties.
Fixed-term contracts do not automatically include a trial period, though one can be added if agreed upon by the employer and employee.
Generally, all working conditions that apply to Swiss employees also apply to foreign employees.
Wages in Switzerland
There is no minimum wage in Switzerland, as salaries are determined either by employers or by collective bargaining agreements.
As a reference, the latest official report states that the median gross monthly salary is CHF 6,788. According to the "Travailler en Suisse" platform, the average salary for foreigners in highly qualified positions is just over CHF 12,750 per month.
We do our best to provide accurate and up to date information. However, if you have noticed any inaccuracies in this article, please let us know in the comments section below.
