Posting: costs and sanctions

This page provides an overview of the costs associated with a posting to Switzerland, particularly in sectors with generally binding collective labour agreements and defined minimum wages, and also provides information on possible sanctions in the event of violations of the Posted Workers Act.

Posting costs in Switzerland

• Minimum pay

  At the very minimum, employers must guarantee their posted workers the working and pay conditions prescribed by Swiss federal law, Federal Council ordinances, generally applicable collective employment contracts and standard employment contracts with mandatory minimum pay (within the meaning of Art. 360a of the Swiss Code of Obligations)(see Posting: legal basis).

  Exceptions are made in two cases. The first is if the work to be performed is limited in scope. The second is in the case of assembly or initial installation work lasting less than eight days and forming part of the contract for product delivery. In these two instances, foreign companies posting workers are exempt from the minimum Swiss requirements regarding pay and holiday entitlement. This exception does not apply to construction or construction-related services, or to hotels and restaurants.

  Here you can check whether the activity carried out falls within the scope of a generally binding collective labour agreement or a standard employment contract with mandatory minimum wages. If this is the case, the provisions applicable to your specific situation, the minimum wages, and the competent contact offices will be displayed:

  Minimum wage calculator

  In industries or professions without mandatory minimum wages from generally binding collective labour agreements / standard employment contract, the customary wage for that location, profession or industry must be upheld.

  The following wage calculator provides indications on customary wages and working conditions in Switzerland in sectors without generally binding collective labor agreements:

  National wage calculator

• Compensation for accommodation and meals

  Employers must reimburse posted employees for expenses incurred in connection with the posting, such as travel, meals and accommodation. This compensation does not count as part of the salary (Article 2 paragraph 3, Posted Workers Act, in German).

  Employers must be able to prove that the actual costs have been reimbursed. If the actual costs are not known, flat rates are applied. In sectors with a generally applicable collective employment contract, the contractually agreed flat rates apply. If a generally applicable collective employment contract does not provide for flat-rate contributions or if no generally applicable collective employment contract applies in an industry, there are fixed flat-rate amounts that can serve as a guideline.

  Further information on the compensation of meals and accommodation as well as the fixed flat rates can be found in Weisung “Vorgehen zum internationalen Lohnvergleich” under point 3.3.1:

  • Directive ‘Procedure for International Salary Comparison’ (available in German, French, and Italian only)

    PDF1.31 MB23 March 2020

• Value Added Tax (VAT)

  Foreign companies posting workers to Switzerland must pay Swiss Value Added Tax (VAT) for any work performed in Switzerland. Companies are exempt from VAT only if their total taxable revenue earned worldwide is less than CHF 100,000 per year. VAT registration is carried out via the website of the Federal Tax Administration (FTA).

• Enforcement fees

  Employers and workers who are party to a generally applicable collective employment contract must pay enforcement fees, which are applied towards the cost of inspecting and enforcing compliance with the contract. Foreign employers posting workers to Switzerland must also pay these fees.

  Enforcement fees are determined by criteria which vary by generally applicable collective employment contract. In some cases, a fixed-rate amount is collected; in others, the amount depends on pay. Under most collective employment contracts, fees are collected monthly.

  Information on the enforcement cost contributions for the respective sectors of activity can be found in the minimum wage calculator.

• Deposit Requirement

  The deposit covers any inspection and procedural costs, enforcement fees or contractual penalties incurred by infringing the terms of a collective employment contract. Employers posting a worker to Switzerland must obtain a deposit if this is required by the relevant generally applicable collective employment contract.

  The amount of the deposit depends on the total value, per calendar year, of the work performed. In general, no deposit is required for work valued at less than CHF 2'000. The maximum deposit amount is CHF 10'000. The different tiers – as well as the deposit amount of each tier - vary by generally applicable collective employment contract. Deposits are handled by a Swiss central office known as the ZKVS.

  Information on the deposits for the respective sectors of activity can be found in the minimum wage calculator as well as under ZKVS | Deposits

• Inspection and procedural costs

  A generally applicable collective employment contract may contain rules for levying inspection fees in the event of a breach of contract. Where this is the case, the provisions dealing with infringements of Article 2 of the Posted Workers Act (in German) also apply to posting companies.

  Inspection and procedural costs are determined by various criteria such as the amount of pay in cases where the employer did not meet minimum-pay requirements, or any back pay settled by the employer. However, in all cases, inspection and procedural costs must be calculated so that they cover the actual time and expense, for example by using an hourly rate.

Sanctions

• Administrative sanctions

  Employers that violate compulsory requirements of the Posted Workers Act will be sanctioned. The purpose of these sanctions is to uphold Swiss working and pay conditions. Sanctions range from a warning or administrative fine to exclusion from the Swiss market.

  Minor infractions such as non-compliance with the eight-day waiting period will result in a warning or administrative fine of up to CHF 5,000.

  For violations concerning the minimum pay and working conditions, the employer can expect administrative fines of up to CHF 30,000 or exclusion from the Swiss market. Serious infractions may result in both an administrative fine and exclusion from the Swiss market. Exclusion from the Swiss market means that the service provider is barred from working in Switzerland.

  In the event of a repeat offence, such an exclusion may last up to five years. In addition, major infractions will be published in an openly accessible online list.

• Contractual penalties

  For violations of provisions contained in a generally applicable collective employment contract, administrative sanctions may be accompanied by civil sanctions, i.e. contractual penalties arising from the contract in question (see. Art. 9 und 12 (in German) and Art. 2 Abs. 2 (in German) of the Posted Workers Act).

• Subcontractor

  If a primary contractor uses subcontractors whose registered office is located outside Switzerland for work performed in Switzerland, the primary contractor must contractually oblige the subcontractor to comply with the Posted Workers Act (Art. 5, in German).

  If the primary contractor fails to do so and the subcontractor violates the Posted Workers Act, the primary contractor may be prosecuted for the subcontractor's offence (see joint and several liability, in German).

• Sanction recommendation for the attention of the cantonal authorities

  Regular workplace inspections in each canton ensure compliance with pay and working conditions.

  SECO has drawn up a sanction recommendation for the attention of the cantonal authorities:

  • Catalogue of sanctions in accordance with the Posted Workers Act (available in German, French and Italian only)

    PDF407.58 kB24 October 2022

Imposed service bans

SECO compiles a monthly list of service providers who have violated the provisions of the Posted Workers Act. This list is public.

The list published online includes those service providers against whom a service ban has become legally binding.

A list of all service providers who have been subject to a legally binding sanction can be requested.

• List of imposed service bans (available in German, French and Italian only)

  PDF138.41 kB2 February 2026

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