Legal

Are you employed undeclared? How to recognize it

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.

July 24, 2026·Reading time: 10 min

Answer in 30 seconds

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 AIA insurance you pay up to CHF 50,000 yourself after a work accident.

Take the 5-question quick check

What does undeclared work mean?

Undeclared work means: Your employer has not registered you with the OASI compensation office. This means no social insurance contributions are being paid - neither for OASI, DI, UI, nor for accident insurance (AIA).

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

Important: As an employee, you are not at fault. The registration obligation lies with the employer. But you bear the consequences: missing pension, no accident protection, no unemployment insurance.

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. You don't receive a salary certificate at year-end
2. There is no written employment contract
3. You are always paid in cash, without a receipt
4. No deductions are shown on your pay
5. You have never received a payslip
6. Your employer says 'It's not necessary'
7. You are not insured against accidents

1. You don't receive a salary certificate at year-end

Every employer must issue you a salary certificate for the previous year by the end of February. Without a salary certificate, you were not reported to the tax office.

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, OASI/DI/EO (5.3%), UI (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. You are not insured against accidents

Ask yourself: What happens if I get injured at work? If you don't know whether you're accident-insured, you probably aren't. With legal employment, you're automatically insured through your employer's AIA.

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. Here are the concrete losses:

💰 OASI pension: Less pension in old age

Each missing contribution year reduces your OASI 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.

💼 No unemployment benefits

If you lose your job, you have no right to unemployment benefits (UI). To receive UI, you need at least 12 months of contributions in the last 2 years. Without registration: zero entitlement.

🏥 No AIA in case of accident

Without accident insurance (AIA), you bear all costs yourself: doctor, hospital, rehabilitation. A workplace accident in the household (fall, burn, chemical injury) can quickly cost CHF 10,000-50,000. Without AIA, you pay everything out of pocket.

👶 No maternity pay

Maternity compensation (MSE) amounts to 80% of salary for 14 weeks. Prerequisite: You were OASI-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.

-2.3%

OASI pension: Less pension in old age

CHF 0

No unemployment benefits

CHF 50'000

No AIA in case of accident

CHF 6'720

No maternity pay

Calculation example: Your annual loss

Assumption: CHF 30/hour, 10 hours/week, 48 weeks/year = CHF 14,400 gross salary/year

• OASI/DI employee contribution (5.3%): CHF 763/year
• UI contribution (1.1%): CHF 158/year
• AIA premium (employer pays): CHF 0 for you
• Employer contribution (your boss pays additionally): CHF 917/year

So you 'save' CHF 921 in deductions per year - but lose CHF 57/month in pension forever, plus accident protection, UI 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.

Employed undeclared

•No OASI pension, gaps in your insurance record
•No accident protection - you pay everything yourself
•No unemployment benefit entitlement
•No maternity pay
•No salary certificate, no rights

Legally employed

•Full OASI pension, complete contribution years
•AIA accident insurance included
•UI entitlement if you lose your job
•80% salary for 14 weeks of maternity
•Payslip, contract, full protection

Quick check: Am I properly registered?

Answer these 5 questions honestly. If you answer even one with 'No', you are probably not properly registered.

✓✗

Do you have a written employment contract?

✓✗

Do you receive a monthly payslip with deductions (OASI, DI, UI)?

✓✗

Do you receive a salary certificate at year-end?

✓✗

Do you know that you are accident-insured (AIA)?

✓✗

Is your salary paid by bank transfer?

✓ 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?

12:05

Hello, I completely understand. Honestly, I didn't know how it worked. Let's look into it.

12:28

Great, thank you! It's easier than you'd think, I'll send you a guide. That way we're both protected.

12:31

Message

What 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 OASI, DI, UI, AIA 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 entire payroll automatically: payslips, OASI registration, accident insurance, employment contract. Your employer pays CHF 19.90/month and only signs and sends the prepared forms - 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 labor 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.

Complete guide: How to properly register your cleaner→Or start directly: Clino prepares everything for CHF 19.90/month→

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 OASI contributions, no accident protection and no unemployment benefits. You are the victim, not the perpetrator.

How much pension do I lose through undeclared work?▼

Per missing contribution year, your OASI 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 OASI 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. 6-7% of gross wages (OASI/DI 5.3%, UI 1.1%, AIA approx. 0.5%). At CHF 30/h and 10h/week, that's about CHF 75/month. With Clino, CHF 19.90/month for the platform is added. So under CHF 100/month 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 behavior. You can contact the labor 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 OASI contributions for the period of undeclared work?▼

Yes, theoretically. The employer can pay OASI contributions retroactively for up to 5 years. 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.