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.
1. Should the Swiss employer continue to pay 100% of salaries to employees on short-time work (Kurzarbeit/RHT)?
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%.
2. How do you compute the employee and employer social contributions for employees receiving short-time work benefits?
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.
3. How does it work for cross-border employees working from home in such in France or Germany?
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.
4. Can cross-border employees benefit from the short-time work benefits?
Yes, employees can benefit from these measures regardless of their place of residence (in Switzerland or in a country of the European Union).