Working in Switzerland for a foreign employer in a compliant way

The benefits of the ANobAG scheme

In many cases, foreign companies without a legal entity in Switzerland, still prefer employing their employees working in Switzerland through one of their foreign legal entities rather than engaging with them on an independent, self-employed or contractor basis.

By employing the individuals directly, they are an integral part of the organisational and HR structure of the company. They will be more solidly embedded in the entire organisation, which allows them to better represent the company from a strategic and business development perspective, especially when the company is entering a new country or a new market.

But how do you deal with all employer compliance obligations in Switzerland, ranging from immigration and labour law to tax, payroll, social security, and pensions?

The Swiss ANobAG (‘Arbeitnehmer ohne beitragspflichtigen Arbeitgeber’) scheme is designed for Swiss employees of foreign companies who have no entity in Switzerland.

ANobAG enables the employee to work under a direct employment contract with the foreign company, but be on a Swiss payroll with respect to social insurances and pension. The employee is then responsible to declare their salary to the Swiss compensation office and pay the total (employee and employer) social security contributions. They also need to have a Swiss accident insurance and, if they are EU nationals, contribute to a company pension plan (2nd pillar).

In this way the employee is covered by the Swiss system for pension, unemployment, disability, and accident insurance while remaining a direct employee of the foreign company.

For more information or support with applying for this scheme, contact us on info@exactio.ch.

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Whether you need payroll, social security, tax or global mobility support, we are the perfect partner. Our extensive experience in all areas and our hands-on approach ensure that you and your employees get what you need.

Get in touch with us and let’s talk about what we can do to make sure you and your employees are compliant!

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