Glossary: Household Employment & Payroll

The CO does not require it, but some cantonal NAVs do (Bern and Ticino). On a monthly wage it is usually paid in December, pro rata if the employee leaves. On an hourly wage it is added as a supplement of 8.33 % on every wage payment. If agreed, put it in writing in the employment contract. Do not confuse it with the holiday supplement of 8.33 %, which pays for holidays.

It is calculated as a percentage of the AHV/IV/EO contributions, not of the wage, and each office sets its own rate up to a federal ceiling (Art. 157 AHVV): 1.4 % to 5 % of the contributions depending on the canton, or roughly 0.15 % to 0.53 % of the gross wage. Some offices charge less if you file the annual declaration online. Administrative costs apply in both procedures, appear on the office's invoice and are not deducted from the wage.

Together with IV and EO, employer and employee each pay 5.3 % of the gross wage, 10.6 % in total. The small-earnings exemption other employers can use does not apply to private households. Exceptions: teenagers up to the end of the year in which they turn 17 are exempt, as are young people up to age 25 earning at most CHF 750 a year from the same household unless they ask to be covered. You register with the compensation office of your canton of residence.

It is printed on the health insurance card. It is not a precondition for registering with the compensation office: anyone who does not have one yet is assigned one. It does belong on the payslip, the Lohnausweis and the annual declaration.

It applies in both procedures, even for a few hours a week. Contributions stop at the AHV reference age. It is settled together with AHV, IV and EO through the compensation office.

The office uses it to calculate the final contributions and, in the simplified procedure, the 5 % withholding tax too. Clino prepares the figures from your payslips and reminds you of the deadline; you submit the report yourself.

Whoever receives it is an employer: an employment contract, registration with the compensation office, accident insurance and payslips are part of it, and every month an invoice with the record of hours goes to the IV office. The IV pays from the month of application, and after the decision also retroactively if the employment contracts already existed. A spouse or partner and direct-line relatives (parents, children, grandparents, grandchildren) and the person's own legal representative, such as a deputy (Beistand), cannot be employed, siblings can. One assistant works at most 44 hours a week, in exceptional cases up to 50 hours.

For the AHV it is employment: the host family registers pocket money plus board and lodging (CHF 990 a month) with the compensation office and insures the au pair against accidents from the first day. The criteria: at most 30 hours a week including housework, one full day off a week, a room of their own and a language course. Pocket money is agreed in the contract; no minimum wage applies as long as all criteria are met (confirmed for Basel-Stadt, Neuchâtel, Ticino and Zurich). If one is missing, the household NAV applies with its minimum wages. Exception with its own minimum wage for au pairs: Geneva. From a non-EU/EFTA country it is only possible through an approved organisation (Art. 48 VZAE).

Documented expenses are reimbursed on top of the wage (Art. 327a CO) and shown separately on the payslip. Because they are not wages, no social insurance contributions are due on them. Flat allowances higher than the actual costs, however, count as wages.

Anyone working a few hours a week usually stays below it; voluntary cover is possible. Above it, the household must insure the employee with a pension fund and pay at least half of the contributions. A wage above CHF 22,680 also no longer fits the simplified procedure.

Only Geneva has a scheme backed by the canton; in Vaud, Valais, Fribourg, Neuchâtel and Jura, associations or companies offer a chèque emploi. Ticino has no cantonal scheme but a private provider; German-speaking Switzerland has nothing comparable. The provider registers you, collects the contributions and passes them on to the funds, including accident insurance. The household remains the employer, though: the employment contract, holidays, sick pay, notice and the reference stay with you. The fee comes on top of the social insurance contributions and rises with the wage.

The compensation office of your canton of residence is responsible. Both procedures run through it: in the simplified one you settle once a year, including 5 % withholding tax; in the ordinary one you pay advance contributions and file the wage report at year end. The office also charges administrative costs.

The duty applies if the job lasts, or is agreed to last, more than 3 months. After that the period grows with the years of service, following the cantonal NAV's scale or the Bern, Basel or Zurich scale. An equivalent KTG replaces the duty: it then usually pays 80 % of the wage for up to 720 days.

Social insurance usually runs through Switzerland, as for any employee. For withholding tax, the country of residence and the canton of work matter: if she lives in France and works in one of these cantons (Basel-Landschaft, Basel-Stadt, Bern, Jura, Neuchâtel, Solothurn, Valais and Vaud), nothing is withheld in Switzerland, provided she hands in the residence certificate every year. In the other cantons withholding tax is deducted, with special rules depending on the country of residence.

It covers cleaners, nannies, carers and au pairs. Legally they are employees, even for a few hours a week: the household is the employer and registers them with the compensation office and accident insurance.

This includes discretion about the family's private life, care with keys and property, and no side work that harms the household. A breach can lead to damages or dismissal, with immediate effect in serious cases.

They include the employer's share of AHV/IV/EO (5.3 %) and ALV (1.1 %), the FAK contribution (1.025 % to 2.85 %, depending on the canton) and the premium for occupational accidents (BU). On top come the compensation office's administrative costs, around 0.15 % to 0.53 % of the wage. Depending on the case, the employer's share of KTG (required by the NAV in 15 cantons) and of BVG (for an annual wage above CHF 22,680) is added. The holiday supplement and a 13th salary are not social charges but wages: contributions are due on them too.

If the job lasts longer than 1 month, the employer must set out the key points in writing anyway (Art. 330b CO). Only valid in writing are, among others, a longer or no probation period, different notice periods and overtime without a supplement. Where the contract is silent, the cantonal NAV and the CO apply. Clino prepares the employment contract in line with the CO and NAV, in several languages.

A full reference also assesses performance and conduct; a confirmation of employment only states the type and length of the job. The employee chooses. The reference must be true and complete while being worded benevolently. During the job it is called an interim reference.

Its contribution is already included in the 5.3 % for AHV/IV/EO that employer and employee each pay, so there is nothing to register separately. The compensation office pays the benefit: for maternity and paternity 80 % of the wage, at most CHF 220 a day.

The employer pays it; only in Valais and Vaud do employees also pay a small share. It is due in both procedures and settled with the compensation office.

Typical signs: fixed days and hours, materials and instructions from the household, no business risk of her own. If the compensation office finds this, it classifies the work as employment and the household pays the contributions retroactively. An invoice alone changes nothing: only someone recognised as self-employed by the compensation office who serves several clients at her own risk counts as self-employed.

The child allowance runs until age 16, the education allowance after that up to age 25 at most, as long as the child is in education. A domestic worker is entitled too if her wage reaches a minimum threshold; it is paid through the employer's family compensation fund. If she works for several households, the one paying the highest wage is responsible.

There is only a probation period if you agree one, at most 3 months. Ending the contract early is only possible if it expressly provides for this; otherwise the options are ending it by mutual agreement or summary dismissal for good cause. Illness or pregnancy do not push back the end date. If the employee tacitly keeps working after the end date, the contract becomes open-ended. Renewing fixed-term contracts again and again without an objective reason (chain contracts) can count as getting round the protection against dismissal.

Predictable for both sides. Holidays and public holidays are already included as paid time off; there is no holiday supplement. A 13th salary comes on top if it is agreed or the cantonal NAV requires it.

Unlike the 13th salary it is not owed as such. But if it is paid three years in a row without a reservation that it is voluntary, it becomes an entitlement. So state with every payment that it is voluntary. The gratuity is subject to AHV and goes on the payslip.

It does not depend on income or assets and is applied for at the IV office. Anyone who lives at home and receives an IV helplessness allowance can also apply for the assistance contribution and employ their own assistants with it. Only then do you become an employer, with a contract, the compensation office and payslips.

This also applies to part-time work: the employee gets the same number of weeks off, on her usual working days. At least 2 weeks must be possible in one go; the employer sets the dates but takes her wishes into account. During the job, holidays may not be replaced by money (Art. 329d CO). The exception is an hourly wage with irregular work: there, holiday pay is usually paid with every wage as a holiday supplement, 8.33 % for 4 weeks, 10.64 % for 5 weeks. The cantonal NAV can provide more holiday.

This is only allowed for irregular work, and the supplement must be shown separately on every payslip. With a regular workload, holidays must be granted as paid time off, according to the Federal Supreme Court (4A_357/2022). Entitlement: at least 4 weeks, 5 weeks until the 20th birthday (Art. 329a CO); most cantonal NAVs also give 5 weeks from age 50. Do not confuse it with the 8.33 % for a 13th salary.

The hourly wage may not fall below the NAV minimum wage. Holidays may only be paid as a supplement for irregular work (8.33 % for 4 weeks, 10.64 % for 5 weeks); with a regular workload they must be taken as paid time off, according to the Federal Supreme Court (4A_357/2022). A 13th salary is added as a supplement of 8.33 % if it is agreed or the NAV requires it.

Typical occasions are a change in the family, a longer absence or a job application. It is structured like the final reference but written in the present tense. The employer must issue it on request.

Its contribution is included in the 5.3 % for AHV/IV/EO that employer and employee each pay, so an employee registered for AHV is also covered by IV. For the first months of an illness it is not IV that pays, but continued pay or the KTG.

In 15 cantons the NAV of the canton of work requires it; elsewhere it is voluntary. It typically pays for up to 720 days. Without KTG, the employer keeps paying the wage out of pocket, following the scale of the NAV or of the courts. Where the NAV requires it, the employer usually pays at least half of the premium.

Art. 321e CO applies: the occupational risk, training, skills and wage are taken into account. For gross negligence or intent she is fully liable. You may only offset damage against the attachable part of the wage. Whether her own private liability insurance covers such damage depends on the policy.

This also applies if you hire her for a relative: AHV registration from the first franc, accident insurance and payslips are part of it. Board and lodging are wages in kind and are added to the cash wage at CHF 990 a month. Working time, on-call presence time, rest and days off are governed by the household NAV of the canton where the work is done. Round-the-clock care does not mean one person works without a break: being on call is not free time and must be paid, and rest periods, days off and holidays need a relief carer. If an agency provides the carer through staff leasing, the agency is the employer.

Cantonal law can provide more (Geneva: 16 weeks). Conditions: insured with AHV for the 9 months before the birth and in paid work for at least 5 months of them. This applies to domestic workers too, but only with a declared wage: wages paid undeclared do not count.

It applies in all cantons except Geneva as soon as an employee works on average more than 5 hours a week for the same household. Some cantons have their own minimum wage: Geneva CHF 24.59, Basel-Stadt CHF 22.20 (only below 5 h/week, from 5 h the NAV takes precedence), Jura CHF 21.40 (only below 5 h/week, from 5 h the NAV takes precedence), Neuchâtel CHF 21.35 and Ticino CHF 20.00. The higher amount always applies, and the canton where the work is done is what counts. Geneva governs household work with its own NAV.

You may not pay less than the federal minimum wages (CHF 20.35, CHF 22.30, CHF 24.55); Geneva has its own NAV with its own minimum wages instead. The cantonal NAV applies whenever the employment contract does not agree otherwise; mandatory CO rules take precedence. The canton where the work is done is what counts.

Her shares come off the gross wage: 5.3 % for AHV/IV/EO, 1.1 % for ALV, the NBU premium from 8 hours a week and, in the simplified procedure, 5 % withholding tax. A common mistake is agreeing a net wage: you then carry all the deductions on top. On top of the gross wage, the household pays around 7.9 % to 9.8 % for AHV/IV/EO, ALV, FAK and BU, plus the office's administrative costs.

Some cantonal NAVs set longer periods already in the 1st year (Appenzell Ausserrhoden and Uri). Shorter periods are only possible in writing and within narrow limits. Notice is valid even when given verbally, but only written notice can be proven; it must reach the other party before the period starts. During probation the periods are shorter.

The notification must be made at the latest the day before work starts; for cleaning in households, even a single working day must be notified. It does not replace AHV registration: the wage is still subject to AHV from the first franc, and accident insurance is needed too. If the job lasts longer, an L or B permit from the cantonal migration office is required. People from non-EU/EFTA countries always need a permit.

BU is always compulsory and the employer pays the premium. NBU is added as soon as the employee works at least 8 hours a week for the same employer; that premium may be deducted from the wage. Below that, an accident on the way to work counts as occupational, and leisure accidents are covered by her own health insurer.

The EO pays 80 % of the wage, at most CHF 220 a day. Conditions: insured with AHV for the 9 months before the birth and in paid work for at least 5 months of them. This also applies to registered household employees.

It lists the deductions for AHV/IV/EO and ALV and, depending on the case, NBU, KTG, BVG and withholding tax. Supplements for holidays, public holidays or a 13th salary must be shown separately. Clino creates the payslip as a PDF.

A longer probation (at most 3 months) or none at all must be agreed in writing. Some cantonal NAVs have their own rules, such as shorter probation periods. Illness, accident or military service during probation extend it accordingly.

For illness or accident, protection lasts 30 days in the 1st year of service, 90 days from the 2nd to the 5th year and 180 days from the 6th year; for pregnancy, the whole pregnancy and 16 weeks after the birth. Military service, civilian service and civil protection are protected too. Notice given during a blocking period is void and must be given again afterwards. If notice was given before, the period is suspended, resumes afterwards and is usually extended to the next end of a month. Separately, an abusive dismissal (Art. 336 CO) remains valid but can cost compensation of up to 6 monthly wages.

Some cantonal NAVs require 8–9 paid public holidays (Basel-Stadt, Geneva, Schaffhausen, Ticino and Valais). On a monthly wage, public holidays are already paid. On an hourly wage they are paid directly or through a supplement: one public holiday is worth about 0.4 % of the annual wage.

Under the ordinary procedure, the employer issues it by the end of February and hands it to the worker. Only eight cantons also require a copy for the cantonal tax administration (BS, BE, FR, JU, NE, SO, VD and VS; in Lucerne it is voluntary); elsewhere, giving it to the employee is enough. Under the simplified procedure, the compensation office issues the worker a tax statement itself after the wage declaration, and withholding tax is settled at a flat rate. A few offices still recommend issuing one anyway; it is not required.

Each household settles separately with its compensation office, even if it is the same office, and insures her against accidents itself. The thresholds apply per employer and are not added up: 8 hours a week for NBU, CHF 22,680 annual wage for BVG and for the simplified procedure. AHV applies in every household from the first franc. If she does not reach 8 hours with any household, her own health insurer covers leisure accidents. Family allowances are paid by the family compensation fund of the household paying the highest wage.

Possible as long as each wage is at most CHF 22,680 a year and all the household's wages together are at most CHF 60,480. With the office you settle AHV/IV/EO, ALV, FAK and the 5 % withholding tax, for every employee, including Swiss nationals and C permit holders. Accident insurance is taken out separately, or you select VAVplus when registering. There are only two procedures: the simplified and the ordinary one.

The employee pays her share through wage deductions. On top, the household pays around 7.9 % to 9.8 % of the gross wage plus administrative costs. BVG is added for an annual wage above CHF 22,680, KTG in the 15 cantons whose NAV requires it.

Households insure their employees with a private accident insurer or, in the simplified procedure, through VAVplus when registering. Suva or private: the UVG benefits are the same.

Cleaning counts as private living costs (Art. 34 DBG), even if the employee is registered. Childcare by third parties, a nanny included, is deductible if it is needed because the parents work or are in education (Art. 33 para. 3 DBG): for the direct federal tax at most CHF 25,800 per child and year, for the cantonal tax CHF 8,000 to CHF 27,300 depending on the canton. Only the share of the wage for childcare counts, not the share for housework. Household help needed because of a disability can be deductible as disability-related costs. You must document the costs, for instance with payslips, the compensation office's statements and the employment contract (in the ordinary procedure also the Lohnausweis): with a registered job you have these documents.

If discovered, the household faces a monetary penalty (Art. 87 AHVG) and must pay back contributions, as a rule for up to 5 years, with default interest. After an accident, the UVG substitute fund pays the benefits but charges the household substitute premiums (Art. 95 UVG). The employee loses AHV contribution years and, if she falls ill or becomes pregnant, often has no entitlement.

From 8 hours a week with the same employer it also covers leisure accidents (NBU); below that, only occupational accidents including the way to work. The employer pays the BU premium; the NBU premium may be deducted from the wage. Through VAVplus they come to 0.505 % and 1.432 % of the wage. Without insurance, the UVG substitute fund still pays after an accident but charges the household substitute premiums (Art. 95 UVG). UVG does not cover illness.

Every canton offers VAVplus, but only on request: you must choose it explicitly when registering. Otherwise you take out accident insurance yourself with an insurer. With VAVplus, AHV/IV/EO, ALV, FAK, UVG and withholding tax all go through a single statement.

The amount is added to the cash wage. AHV/IV/EO, ALV, FAK, accident insurance and, where applicable, withholding tax are calculated on the total; the deductions, however, only come off the cash wage. The total also counts towards the simplified-procedure limit and the BVG threshold of CHF 22,680. If the household provides only some meals or only the room, the matching partial amount applies (Art. 11 AHVV). This mainly concerns au pairs and live-in carers.

In the simplified procedure it applies to every employee, Swiss nationals and C permit holders included: a flat 5 %, settled through the compensation office, which covers the tax on this wage. In the ordinary procedure it only concerns foreign employees without a C permit; the rate depends on the canton, marital status, children and wage, and it is settled with the cantonal tax administration.

B is the residence permit (usually valid 5 years for EU/EFTA nationals), C the settlement permit after 5 to 10 years, G the permit for cross-border commuters and L the one for short stays of up to 12 months. People from non-EU/EFTA countries get a permit for household work only in exceptional cases. Check the permit before the first working day: employing someone without a valid permit can lead to a fine.

Overtime is paid at the wage plus 25 % (Art. 321c CO), unless otherwise agreed in writing or compensated, with the employee's consent, by time off of equal length. The Labour Act does not apply to private households: breaks, rest periods and days off are governed by the CO and your canton's NAV.