Due to the current situation related to COVID-19, Swiss employers face many challenges. One area is salary payments and related topics. As the situation evolves, new questions are emerging. We explore seven new considerations for Swiss employers.
In principle, the employer should advance the benefits at 80%, while continuing to pay the social contributions on 100% of the salary. There is no obligation for the Swiss employer to maintain the salary of the employee at 100%. However, a Swiss employer is free to continue paying employee salaries at 100%.
During the period of short-time work benefits, the employee and employer social contributions of the relevant employees should continue to be computed based on 100% of the salary.
Home office for limited time and in the context of this crisis does not allow foreign authorities to consider that the employee works more than 25% of working hours in the foreign country such as France or Germany. Therefore, cross-border employees remain subject to Swiss social security legislation due to the current crisis.
Yes, employees can benefit from these measures regardless of their place of residence (in Switzerland or in a country of the European Union).
The following types of compensation subject to social security should be taken into consideration when determining this benefit:
The following types of compensation should be excluded from the basis when determining this benefit:
Swiss employers hit by this crisis will have the possibility of deferring provisionally and without interest the payment of contributions to social insurances (AVS/AHV, AI, APG, AC). They will also be able to adjust the usual amount of installments paid under these insurances in the event of a significant drop in payroll. The AVS/AHV compensation offices are responsible for examining the deferral of payments and the reduction of deposits.