Hiring your first employees in Geneva

Hiring your first employee in Geneva: where to begin?

Hiring your first employee is an important step for a business. It is also when administrative obligations multiply: social insurance, withholding tax, monthly and annual returns. An initial mistake can prove costly several years later, during an inspection.

This guide is for self-employed professionals and Geneva SMEs hiring their first employees. It summarises what to do before hiring, mandatory registrations with the 2026 rates and the mistakes we see most often.

Before hiring: contract, salary and permits

• The employment contract. An oral contract is valid, but a written contract protects you in the event of a dispute. It must specify at least the role, salary, working hours, start date and probationary period. Without a written contract, you must still inform the employee of these details in writing within one month of their starting work.
• The probationary period. Unless otherwise agreed, it lasts one month. It can be extended to three months if agreed in writing.
• The Geneva minimum wage. In 2026, no wage may be below CHF 24.59 gross per hour (CHF 24.73 from 2027), with some exceptions (apprentices, internships with a training agreement). If your sector is covered by a collective labour agreement (CCT), its minimum applies if it is higher.
• Holidays. At least four weeks per year, and five for employees under 20. Some CCTs provide for more.
• The work permit. EU and EFTA nationals can work after a simple notification or permit application. For other nationalities, authorisation is subject to strict conditions and must be obtained before work begins. Never let anyone start without valid authorisation: the employer faces the fine.

Mandatory registrations and 2026 contribution rates

From your first employee, you must register as an employer with the social insurance schemes. Most contributions are shared between employer and employee: you deduct them from the salary, then pay both the employee's share and your own.

Without loss of earnings insurance for illness, you must continue paying a sick employee’s salary for a limited period, which increases with their years of service. For a small business, a long illness can quickly become a cash flow problem.

Does your new employee not have an AHV/AVS card? If you are registered with OCAS (the Geneva cantonal compensation fund), you can order one for them online. We show you the process step by step in this video:

Withholding tax: an employer’s responsibility

If you hire a foreign national without a permis C (for example, a permis B holder or a cross-border commuter with a permis G), you must deduct tax directly from their salary.

• Register as a withholding tax debtor with the Geneva tax authorities.
• Apply the correct tax scale, according to the employee’s family situation: single, married, children, spouse’s income.
• Pay the tax withheld to the authorities according to the prescribed schedule and give the employee a withholding tax certificate (attestation-quittance) at the end of the year.

Be careful: if you forget to withhold tax or apply the wrong scale, you, the employer, must pay the difference. Also remember to update the scale whenever the employee’s circumstances change: marriage, birth, divorce.

Every month and every year: the employer’s calendar

Every month

• Calculate the salary and provide a detailed payslip: gross salary, each deduction, net salary, family allowances.
• Pay the salary on the date specified in the contract, generally at the end of the month.
• Pay the withholding tax deducted, if you have employees concerned.
• Pay the advance contributions invoiced by the compensation fund and the other insurers.

At the start of each year

• Report the previous year’s salaries to the AHV/AVS compensation fund, the accident insurer (LAA/UVG) and the pension fund by the end of January at the latest.
• Give each employee their salary certificate, which they need for their tax return.
• Give employees subject to withholding tax their withholding tax certificate (attestation-quittance).
• Notify the compensation fund of the estimated annual payroll to adjust advance contributions.

Payroll software or a fiduciary helps you avoid most calculation errors, especially for rates that change every year.

Mistakes that cost employers dearly

• Not registering on time. The compensation fund claims contributions retroactively over five years, with late-payment interest, and the employer can often no longer recover the employee’s share. For LPP/BVG, a registration delay of more than six months costs at least CHF 500 in fines per employee.
• Overlooking your sector’s CCT. Construction, cleaning, security, hotels and catering: many CCTs are mandatory for all businesses in the sector, even those that are not members of an employers’ association. Joint committees check salaries and can impose fines.
• Paying below the Geneva minimum wage or the CCT minimum, even for part-time work or a “helping hand”.
• Working without a written contract. In a dispute over hours, holidays or salary, it is often the employee’s word that counts.
• Not recording working time. The law requires you to keep a record of hours. Without it, you will not be able to dispute an overtime claim.
• Neglecting loss of earnings insurance for illness. A long absence can cost several months’ salary without any insurance benefits to offset it.
• Getting self-employed status wrong. A “self-employed” person who works only for you, with your hours and your equipment, may be reclassified as an employee by AHV/AVS. You will then have to pay contributions for previous years.
• Hiring an intern without an internship agreement. In Geneva, an internship paid below the minimum wage is only permitted if it is part of a training programme, with an agreement signed with the educational institution. Without this agreement, the internship is considered illegal and the employer must pay the difference from the Geneva minimum wage retroactively.

Frequently asked questions

How much does an employee cost on top of their salary? Generally allow between 13% and 20% of gross salary in employer contributions, depending on the pension fund, accident insurance, loss of earnings insurance and applicable CCT.

Must I insure an employee who works a few hours per week? Yes, for AHV/AVS, unemployment insurance and occupational accident insurance, from the first franc. LPP/BVG is only mandatory from CHF 22'680 annual salary, and non-occupational accident insurance from 8 hours per week.

Can I hire a cross-border commuter? Yes. They need a permis G, you deduct withholding tax, and they are covered by Swiss social insurance like other employees, with exceptions if they also work in France.

Delegate your payroll management

RM Solutions handles registrations, payslips, withholding tax, annual declarations and salary certificates. We also check that your salaries comply with the Geneva minimum wage and your sector’s CCT. We welcome you in French, English, Spanish, Italian and Portuguese.