Payroll outsourcing is a strategic decision for any company in Switzerland. This guide details the complete process, expected deliverables, legal obligations to comply with and the advantages of professional payroll management with a partner like AX-Fiduciaire.
What is payroll outsourcing?
Payroll outsourcing consists of entrusting an external provider with all tasks related to salary processing: calculating remuneration, preparing payslips, managing social contributions, tax declarations and producing salary certificates. In Switzerland, this practice is common and concerns both micro-enterprises and medium-sized SMEs.
Contrary to popular belief, outsourcing is not limited to calculating net salary. It encompasses a complete value chain, from collecting variable data to legal document archiving, including interactions with compensation funds, pension institutions and tax authorities.
The advantages of outsourcing
Cost reduction
The cost of an internal payroll manager (salary, social charges, continuing education, software) far exceeds the cost of outsourcing. For a company with 20 employees, outsourcing at CHF 29.-/payslip represents CHF 580.-/month, a fraction of the cost of a part-time position dedicated to payroll.
Guaranteed compliance
Swiss legislation on salaries evolves regularly. AHV, BVG and UVG contribution rates are revised each year. Withholding tax scales change. Collective labour agreements (CLA) are updated. A specialised provider continuously monitors these developments and guarantees the compliance of your payslips.
Time savings
Internal payroll management requires an average of 3 hours per employee per month for an SME without a dedicated tool. For 15 employees, this represents 45 hours per month, i.e. more than one week of work. Outsourcing frees up this time for higher value-added activities.
Security and confidentiality
Salary data is among the most sensitive in a company. At AX-Fiduciaire, it is hosted on secure servers in Switzerland, with strictly limited access and end-to-end encryption. Our infrastructure meets the requirements of the revised Federal Data Protection Act (FADP).
The complete payroll management process
Here is the detailed payroll process as we manage it for our clients:
| Step | Timing | Description | Responsible |
|---|---|---|---|
| Data collection | D-10 before month-end | Overtime, absences, arrivals/departures, bonuses | Client |
| Salary calculation | D-7 before month-end | Gross salary, contributions, withholding tax, net | AX-Fiduciaire |
| Double check | D-6 before month-end | Verification by a second specialist | AX-Fiduciaire |
| Client validation | D-5 before month-end | Review and approval of payslips | Client |
| Payment file | D-3 before month-end | Generation of ISO 20022 file for e-banking | AX-Fiduciaire |
| Salary payment | Last business day | Payment validation in e-banking | Client |
| Social declarations | M+1 (monthly/quarterly) | AHV, BVG, UVG, withholding tax | AX-Fiduciaire |
| Annual closing | January N+1 | Year-end closing, salary certificates | AX-Fiduciaire |
Monthly and annual deliverables
Monthly deliverables
- Individual payslips: document detailing gross salary, each deduction (AHV, IV, APG, ALV, BVG, UVG, withholding tax) and the net salary to be paid
- Payroll journal: summary of all salaries for the month, by department or cost centre if required
- ISO 20022 payment file: bank file ready to be imported into your e-banking for salary transfers
- Accounting entries: salary entries are automatically integrated into Odoo for accounting
- Withholding tax declarations: electronic transmission to cantonal tax authorities (swissdec)
Annual deliverables
- Salary certificates: prepared according to the official Swiss Tax Conference (CSI) form, transmitted before 31 January
- Annual AHV statements: reconciliation of contributions paid with the compensation fund
- BVG declaration: updated list of insured persons and insured salaries with the pension institution
- UVG declaration: payroll mass statement by risk category for accident insurance
- Annual salary statistics: summary table for your internal management needs
Legal obligations of the employer
Swiss employers are subject to a strict legal framework regarding payroll management. Here are the main obligations arising from the Code of Obligations (CO), the Labour Act (ArG) and social insurance laws:
Salary payment
Under art. 323 CO, salary must be paid at the end of each month, unless otherwise agreed. Payment must be made in legal tender (Swiss francs). The employer must provide a detailed statement (payslip) showing gross salary, deductions and net amount.
Social contributions
The employer must deduct employee contributions and remit all contributions (employer + employee share) to the relevant funds. Non-payment of AHV contributions is subject to criminal prosecution (art. 87 AHVG). The 2026 contribution rates are detailed in our social charges guide.
Withholding tax
For employees without a settlement permit (C permit), the employer must deduct withholding tax according to cantonal scales and remit it monthly to the tax authority. Failure to deduct makes the employer liable for the tax from their own pocket. See our work permits guide.
Document retention
Accounting and payroll documents must be retained for 10 years (art. 958f CO). This includes payslips, contribution statements, salary certificates and correspondence with funds. Electronic format is accepted provided integrity and legibility are guaranteed.
Odoo software for payroll management
At AX-Fiduciaire, we have chosen Odoo as our payroll management platform. This choice is based on several fundamental advantages for our clients:
| Feature | Benefit for the client |
|---|---|
| Swiss Payroll Module | Configured with 2026 rates, cantonal scales and Swiss law specificities |
| Employee portal | Online access to payslips, holiday requests, time tracking |
| Accounting integration | Automatic salary entries, simplified bank reconciliation |
| HR management | Contracts, appraisals, org chart, onboarding in the same tool |
| Swissdec certified | Electronic transmission of declarations to authorities (ELM) |
| Real-time access | Employer dashboard with overview of salary costs |
Access to the Odoo portal is included in our flat rate of CHF 29.-/payslip, with no additional licence cost for the client.
Special cases in payroll management
Hourly vs. monthly salary
In Switzerland, both models coexist. Hourly pay is common in hospitality, construction and temporary employment. It involves calculating holiday pay (generally 8.33% for 4 weeks or 10.64% for 5 weeks) and public holiday pay included in the hourly rate or paid separately.
13th salary
The 13th salary is not a legal obligation in Switzerland, unless provided for in the employment contract or a collective labour agreement (CLA). When provided, it is generally paid in December and represents 1/12 of the annual gross salary. Social contributions apply normally to the 13th salary.
Salary in case of illness or accident
In case of illness, the employer must pay the salary according to the Bernese, Zurich or Basel scale (depending on the canton and length of service). In case of occupational accident, SUVA or the UVG insurer pays daily allowances of 80% of the insured salary from the 3rd day. The employer must pay 80% of the salary for the first 2 days.
Part-time employees
Part-time employees benefit from the same rights proportional to their employment rate. Social contributions apply in the same way. A particular point of attention concerns BVG: the entry threshold (CHF 22,680 in 2026) applies to the actual salary, which may exclude some employees with a low employment rate from occupational pension.
How much does payroll outsourcing cost?
At AX-Fiduciaire, our pricing is simple and transparent:
| Service | Rate |
|---|---|
| Monthly payslip (all-inclusive) | CHF 29.-/payslip |
| Initial setup (1-10 employees) | Free |
| Initial setup (11+ employees) | On request |
| Annual salary certificate | Included |
| Annual statements (AHV, BVG, UVG) | Included |
| Ad-hoc HR advice | CHF 180.-/hour |
For a personalised quote tailored to your structure, contact us. The first month is free for every new payroll management mandate.