Legal
Paid in cash, no contract? Check in 2 minutes if you're working undeclared
Many domestic workers in Switzerland work without knowing it, without social insurance. You get cash, no salary certificate, no contract. Here you'll learn how to tell if you're properly registered, what you're losing, and what you can do about it.
If you are paid cash without receipts and have no contract, no payslip and no salary certificate, you are very likely employed undeclared.
- The registration obligation lies with your employer, you are not liable.
- Each missing contribution year costs you about CHF 57 per month in pension, for life.
- Without a UVG policy the Ersatzkasse UVG pays after a work accident, but you first have to prove you worked there.
What does undeclared work mean?
Undeclared work means: Your employer has not registered you with the AHV compensation office. This means no social insurance contributions are being paid, neither for AHV, IV, ALV, nor for accident insurance (UVG).
In Switzerland, every employer is legally required to register their domestic help with the cantonal compensation office, from the very first franc of wages (Art. 12 OASIA). This applies even for just a few hours per week. (AHV Merkblatt 2.06)
Typically, you can recognize undeclared work by being paid in cash, receiving no salary certificate, and never having seen a payslip. Often the employer says: 'We do it informally' or 'It's not necessary.'
Important
The 7 warning signs: Are you employed undeclared?
If one or more of these warning signs apply to you, it's highly likely that you're not properly registered:
The 7 warning signs - Checklist
1. At year-end you get neither a salary certificate nor a confirmation from the compensation office
After each year you receive either a salary certificate from your employer or, in the simplified procedure, a confirmation of the withholding tax deduction from the compensation office. If you have neither, you are probably not registered.
2. There is no written employment contract
While an oral contract is valid in Switzerland, a missing written contract is a strong indicator of undeclared work. Serious employers always have a contract.
3. You are always paid in cash, without a receipt
Cash payment alone is not illegal, but if there's no receipt and nothing is documented, it's a clear warning sign. Legal employers transfer wages or at least issue a receipt.
4. No deductions are shown on your pay
With legal employment, AHV/IV/EO (5.3%), ALV (1.1%) and other contributions are automatically deducted from gross wages. If you always receive exactly the agreed amount without deductions, social insurance contributions are missing.
5. You have never received a payslip
A monthly payslip is mandatory. It shows gross wages, deductions and net pay. Without a payslip, you have no proof that contributions are being paid.
6. Your employer says 'It's not necessary'
Phrases like 'We do it informally', 'It's just a small job' or 'Registration isn't worth it' are typical excuses. Fact: In Switzerland, every domestic worker must be registered from the first franc.
7. Your employer has no accident insurance policy
Ask yourself: What happens if I get injured at work? If nobody can tell you the name of the accident insurer, there is probably no policy. The Ersatzkasse UVG still pays, but you first have to prove you worked there. With legal employment, an accident simply goes through your employer's insurer.
If 2 or more of these points apply to you, you are very likely working undeclared.
What you lose: The concrete consequences
Undeclared work doesn't just harm the state. It mainly harms you, above all your future pension. How far apart that drifts over the years is shown in the story of two cleaners, only one registered. Here are the concrete losses:
💰 AHV pension: Less pension in old age
Each missing contribution year reduces your AHV pension by approx. 2.3%. With the maximum full pension of CHF 2,520/month (as of 2025), one missing year means about CHF 57 less per month, for the rest of your life. After 10 years without contributions, you're missing CHF 570/month.
💼 Unemployment benefits at risk
For unemployment benefits you need at least 12 months of work subject to contributions in the last 2 years, for which you were paid a wage (Art. 13 AVIG). Registered, that is on record. Without registration you must prove the work and the wage yourself, for example with bank transfers, messages or witnesses. With cash pay that often fails. The unemployment fund decides case by case.
🏥 Accident without a UVG policy
Without an UVG policy you are still protected: the Ersatzkasse UVG pays the statutory benefits (doctor, hospital, rehabilitation) and recovers the substitute premiums from the employer (Art. 95 UVG). But with no registration and no payslip it is hard to prove how high your insured earnings were.
👶 No maternity pay
Maternity compensation (MSE) amounts to 80% of salary for 14 weeks. Prerequisite: You were AHV-insured during the 9 months before birth. Without registration: no maternity pay. At CHF 30/h and 20h/week, that's about CHF 6,720 you'd miss.
🩺 No continued salary payment during illness
Without a written employment contract, continued salary payment during illness is hard to enforce. In the first year of employment, you're entitled to 3 weeks of continued pay (Bern Scale), but only if an employment relationship is provable.
Calculation example: Your annual loss
Assumption: CHF 30/hour, 10 hours/week, 48 weeks/year = CHF 14,400 gross salary/year
- • AHV/IV employee contribution (5.3%): CHF 763/year
- • ALV contribution (1.1%): CHF 158/year
- • UVG premium (employer pays): CHF 0 for you
- • Employer contribution (your boss pays additionally): about CHF 1,140-1,380/year (depending on the canton)
So you 'save' CHF 921 in deductions per year, but lose CHF 57/month in pension forever, plus the proof you need after an accident, a secure ALV entitlement and maternity pay. An extremely bad deal.
You 'save' CHF 921 per year in deductions, but lose CHF 57/month in pension forever. An extremely bad deal.
- Full AHV pension, complete contribution years
- UVG accident insurance application prepared
- ALV entitlement if you lose your job
- 80% salary for 14 weeks of maternity
- Payslip, contract, full protection
- No AHV pension, gaps in your insurance record
- Accident: you first have to prove you worked there
- Unemployment benefits only with your own proof
- No maternity pay
- No salary certificate, no rights
Quick check: Am I properly registered?
Answer these 5 questions honestly. If you answer even one with 'No', you are probably not properly registered.
✓ All YES? Everything is correct: you are legally employed and protected.
✗ One or more NO? Talk to your employer. Below you'll find concrete tips.
How to raise getting registered
Steiner
online
Hello Mrs Steiner, I really enjoy working for you. It would matter to me to be officially registered, so I'm covered for accidents, illness and later for my pension. Could we sort it out together?
12:05Hello, I completely understand. Honestly, I didn't know how it worked. Let's look into it.
12:28Great, thank you! It's easier than you'd think, I'll send you a guide. That way we're both protected.
12:31What you can do
If you discover that you're employed undeclared, don't panic. There is a clear path:
Step 1: Talk to your employer
Stay calm and diplomatic. Many employers don't even know they need to register you, or they think it's complicated and expensive. Say something like: 'I've read that in Switzerland you need to be registered from the first franc. Could we sort this out?'
Step 2: Point out the simplified procedure
Switzerland offers a simplified billing procedure for households. It combines AHV, IV, ALV, UVG and withholding tax in a single statement. The total deduction is only about 12-15% of gross wages. It's simple and affordable. That's the strongest argument.
Step 3: Recommend Clino
Clino prepares the paperwork: payslips, AHV registration, employment contract, and shows step by step how to take out the accident insurance. Your employer pays CHF 19.90/month plus the usual contributions, signs and sends the prepared forms and takes out the accident insurance himself. Clino handles the paperwork. You can simply send your employer the link.
Step 4: If nothing helps
If your employer refuses to register you, you have these options: Contact the cantonal labour inspectorate (they treat reports confidentially), reach out to a trade union like VPOD or Unia, or find an employer who works correctly.
For employers: How to make it legal
If you're reading this article as an employer: It's easier than you think. The simplified billing procedure for private households was created exactly for this situation.
The total effort: a one-time registration (about 15 minutes with Clino), and payroll then runs automatically from there. You receive monthly payslips, social insurance contributions are correctly remitted, and your domestic help is accident-insured.
Frequently asked questions
Can I as an employee be punished for working undeclared?▼
In Switzerland, the registration obligation lies with the employer, not with you. You are not liable if you are not registered. However, you bear the consequences: missing AHV contributions, having to prove you worked there after an accident, and for unemployment benefits you must prove the work and the wage yourself. You are the victim, not the perpetrator.
How much pension do I lose through undeclared work?▼
Per missing contribution year, your AHV pension drops by approx. 2.3%. With the maximum full pension of CHF 2,520/month (2025), that's about CHF 57 less per month, for life. After 10 years without contributions, you're missing CHF 570/month. The AHV pension is calculated from the number of contribution years and average income.
What does it cost my employer to register me legally?▼
In the simplified billing procedure, employer contributions are approx. 8.5-10% of gross wages (AHV/IV/EO 5.3%, ALV 1.1%, family allowances 1-2.9% depending on the canton, UVG approx. 0.5%, plus admin costs). At CHF 30/h and 10h/week, that's about CHF 100-120/month. With Clino, CHF 19.90/month for the platform is added. So about CHF 120-140/month in total for full legality.
Can my employer fire me if I ask about registration?▼
Theoretically yes, since in Switzerland no reason for termination is required. Practically, a dismissal because of this question is a strong indicator of unlawful behaviour. You can contact the labour inspectorate or a trade union. Also: An employer who fires you for asking about your rights is not a good employer.
Can I retroactively claim AHV contributions for the period of undeclared work?▼
Yes, theoretically. The employer can pay AHV contributions retroactively, usually for up to 5 years, and up to 7 years after an offence (AHVG Art. 16 para. 1). In practice, this is hard to enforce because you must prove that you worked there during that period. That's why: The sooner you bring up the topic, the better.
Show your employer how easy it is
Send your employer the link to Clino. Registration takes 15 minutes, costs CHF 19.90/month and protects you both. You get a payslip every month, your AHV contributions are paid in, and after an accident you have everything in writing.
Free. The profile makes the registration quicker for the family.
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One quick thing: where are you right now?
Legal notice: This article provides general information on recognizing undeclared work from an employee perspective in Switzerland. It does not replace legal advice. The exact provisions may vary by canton. For specific questions, contact a trade union, the labour inspectorate or a lawyer. Based on: Federal Act on Combating Undeclared Work (BGSA), OASIA, UVG Act, as of 2026.
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