FAQ

Paying your cleaner in cash - is it legal?

The question comes up all the time: Can I pay my cleaner in cash? The short answer: Yes. But the question you should actually be asking is a very different one. In this article we bust the myth and show what really matters.

Answer in 30 seconds

Yes, paying your cleaner in cash is perfectly legal in Switzerland, it only becomes undeclared work if she is not registered with the AHV.

Registration is mandatory from the very first franc, for cash and bank transfer alike.
Unregistered, you are personally liable for accident costs of CHF 50,000 to 200,000.
Paying cash and registering properly work together, done in four steps.

How to pay cash and register properly

Is paying cash allowed?

Yes - paying cash is legal.

So what's the problem?

Not the cash - the missing registration.

When to register?

AHV-liable from the first franc.

And if undeclared?

Back-pay + fines loom.

Already paid without declaring? Here's how to set it right from today - calmly, without drama.

The short answer: Yes, cash payment is legal

Swiss francs are legal tender (Art. 3 WZG). Anyone can pay their cleaner in cash - by bank transfer, Twint or indeed in cash. The payment method is irrelevant under employment law.

Art. 323b CO even states that wages must be paid in legal currency. Cash is not only permitted but explicitly provided for by law.

Paying in cash is legal. Not registering is not.

The real problem: Not the cash, but the missing registration

When people ask 'Can I pay my cleaner in cash?', they usually mean: 'Can I pay my cleaner without registering her?' And that's exactly the problem.

The Federal Act on Measures to Combat Undeclared Work (FMIA) does not define undeclared work by payment method. Undeclared work occurs when the employment is not registered with social insurance (OASI) - regardless of whether payment is in cash or by bank transfer.

In other words: you can pay your cleaner by bank transfer and still be committing undeclared work - if the registration is missing. Conversely, cash payment is perfectly legal as long as the registration is in order.

Common misconception

Many believe bank transfer = legal and cash = undeclared work. This is wrong. The only thing that matters is registration with the OASI compensation office.

More on undeclared work in our detailed article: Undeclared Work in Switzerland: Risks, Penalties and Alternatives.

When do I need to register my cleaner?

This is often misunderstood: in a private household there is no minor-amount threshold. AHV registration applies from the very first franc of wages - regardless of workload. The only exception: employees under 25 whose annual wage is below CHF 750. A few examples:

CHF 0

Registration from the very first franc

Only exception: employees under 25 earning under CHF 750/year

!Cleaner comes 2x/month for 3 hours at CHF 30: 2 × 3 × 30 × 12 = CHF 2,160/year - must register

!Cleaner comes 1x/month for 4 hours at CHF 28: 1 × 4 × 28 × 12 = CHF 1,344/year - must register

!Cleaner comes 1x/month for 2 hours at CHF 30: 1 × 2 × 30 × 12 = CHF 720/year - still must be registered (exception only under 25)

Bottom line: practically every regular cleaning help in a household must be registered. Paying cash makes no difference - exactly the same rules apply as for a bank transfer.

Quick check: do you have to register your cleaner?

Our detailed guide shows you step by step how registration works: Register your cleaner in Switzerland.

Risks without registration - even with cash payment

Whether cash or bank transfer: without registration you as the employer bear significant risks.

CHF 50K-200K

Personal liability for work accident (AIA)

5 years

Retroactive OASI back-payment

up to 300%

Penalty surcharge for tax evasion

CHF 10,000

Maximum FMIA fine

Don't underestimate accident risk

Without AIA insurance, you are personally liable for all costs of a workplace accident involving your cleaner - including medical costs, lost wages and disability pension. Falls from ladders, slips on wet floors or chemical burns from cleaning agents are more common than you think.

Cash WITHOUT registration

•Undeclared work under FMIA
•No accident insurance - you are privately liable
•OASI back-payment up to 5 years retroactively
•Tax penalties up to 300% surcharge

Cash WITH registration

•100% legal and compliant
•AIA accident insurance for your cleaner
•OASI contributions correctly paid
•Costs tax-deductible

Properly registered, your cleaner also has all her statutory rights - from continued pay during illness to paid holidays and protection against dismissal. For an overview, see the rights of a household helper.

Pay cash AND register properly - here's how

Cash payment and legal employment are not mutually exclusive. Four steps and you're done:

Register with the OASI compensation office

Register as a private employer with the cantonal compensation office. It takes about 15 minutes and can often be done online.

Create an employment contract

Put wages, working hours, holidays and notice period in writing. Clino creates the contract automatically for you.

Deduct social contributions from cash wages

Deduct the employee share (OASI/DI/EO/UI approx. 6.4%) from the agreed gross wage and pay the net amount in cash. You remit the employer share quarterly.

Issue receipt & create salary statement

Have every cash payment receipted. At year-end create a salary statement - Clino generates this automatically.

Clino prepares all the admin: contract, payroll, OASI registration and salary statement - for CHF 19.90/month. You continue paying your cleaner in cash.

WhatsApp: Switching to bank transfer

Maria

online

Hi Maria, starting next month I'd like to pay your salary by bank transfer. It's safer for both of us and I can document payments properly. Would you be okay with that?

14:00

Yes, no problem! Should I send you my bank details?

14:15

That would be great, thanks! I'll update the contract accordingly. You'll of course continue receiving the same salary.

14:18

Message

What to watch out for with cash payments

To make sure everything is correct with cash payments, follow these points:

Your cash payment checklist

Have a receipt signed for every cash payment (date, amount, signature)
Document working hours per session (date, duration, activity)
Keep copies of all receipts for at least 5 years
Create an annual salary statement and hand it to your cleaner
Transfer social insurance contributions quarterly to the compensation office
Claim cleaning costs in your tax return as professional expenses or household help deduction

Don't forget: properly registered household help costs can be claimed in your tax return.

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Frequently asked questions about paying your cleaner in cash

Is it illegal to pay a cleaner in cash?

No. Cash payment is perfectly legal in Switzerland. It only becomes illegal when the cleaner is not registered with the OASI compensation office - regardless of the payment method.

From what amount do I need to register my cleaner?

In a private household, AHV registration is mandatory from the very first franc of wages - there is no minor-amount threshold here. Only for employees under 25 with an annual wage below CHF 750 are contributions waived. In all other cases you must register, no matter how little your cleaner works.

Do I need an employment contract if I pay in cash?

A written employment contract is not legally mandatory but strongly recommended. It protects both parties and is a prerequisite for many insurance benefits. Clino creates the contract automatically.

Can I deduct cash payments to my cleaner from taxes?

Yes - provided the cleaner is properly registered. Household help costs can be claimed as professional expenses or general deductions depending on the canton. Without registration, no tax deduction is possible.

How do I document cash payments correctly?

Have every payment confirmed with a receipt (date, amount, signature) and keep a simple time log. Clino automatically generates the salary statement for you at year-end.