Employment Relations: What’s New as of January 1, 2027

Reminder: Since January 1, 2025, the reference retirement age for women has been increasing from 64 to 65 years, in three-month increments per birth year. The occupational pension reference age follows the same schedule.

The last column indicates the period during which each cohort reaches its reference age.

Recommendation: If your employment contracts or staff regulations tie contract termination to “AVS age,” calculate the exact date for each female employee.

• Entry threshold: CHF 23,040 per year (2026: CHF 22,680). An employee earning between these two amounts ceases to be covered by mandatory insurance, unless more favorable regulations apply. Part-time employees and lower earners are the most affected.
• Coordination deduction: CHF 26,880 (2026: CHF 26,460). For an equivalent salary, the coordinated salary decreases by CHF 420 per year.
• Maximum annual salary taken into account: CHF 92,160
• Minimum coordinated salary: CHF 3,840
• Minimum interest rate: 2% as of January 1, 2027, up from 1.25% since 2024. The Federal Council adopted this decision on November 4, 2026, exceeding the 1.75% recommended by the Federal Occupational Pension Commission. This rate applies to mandatory retirement assets. Pension funds may offer higher returns, but not lower.

The maximum tax deduction rises to CHF 7,373 for employees affiliated with an occupational pension institution, and to CHF 36,864 for individuals without a second pillar. A helpful update to share with your employees.

No federal increase has been adopted for 2027. Minimum amounts remain those set as of January 1, 2025: CHF 215 per month for the child allowance and CHF 268 for the vocational education allowance. A parliamentary initiative seeks to increase them to CHF 250 and CHF 300, funded by higher employer contributions; it remains under review. Cantons may provide for higher amounts.

• The maximum compensation period of 24 months, rather than 12, applies until January 31, 2027. On October 21, 2026, the Federal Council announced a gradual return to standard rules during 2027. It is expected to decide in December on the arrangements taking effect from February.
• The waiting period borne by the employer is set to return from one to three days starting in 2028. A consultation is scheduled for spring 2027.
• A company receiving compensation for 24 months without interruption within the same framework period must wait six months before applying again. This statutory rule has been in effect since September 27, 2025, and runs through December 31, 2028.

Nothing changes on January 1. On June 19, 2026, Parliament adopted the primacy of declared generally binding CBA minimum wages over cantonal minimum wages. This law is not yet in effect. The referendum was successful: the Federal Chancellery validated 66,006 signatures on October 23, 2026. Voters will make the final decision. In the meantime, existing law remains in force.

In the core construction sector, minimum wages under the National Agreement increase by 1% on January 1, 2027, through an initial automatic cost-of-living adjustment. From the same date, companies may opt for work scheduling based on constant daily working hours. Be sure to check the 2027 updates for any other applicable CBAs.

For 2026, the Federal Council had left quotas unchanged (decision of November 19, 2025):

• Third-country nationals: 8,500 units (4,500 B permits, 4,000 L permits);
• United Kingdom: 3,500 units (2,100 B and 1,400 L);
• EU/EFTA service providers for assignments exceeding 120 days per year: 3,000 L permits and 500 B permits.
• Quotas for 2027 had not yet been established at the time of writing.

Effective December 1, 2026, a new Article 32c of Ordinance 2 to the Labor Act (ArGV 2 / OLT 2) authorizes exceptions regarding working and rest hours for start-ups. The Federal Council adopted this provision on October 28, 2026.

Cumulative conditions:

• employees of start-ups;
• specialized skills and substantial autonomy;
• equity participation through an employee participation plan;
• time-limited projects.

Exceptions: Targeted, concerning rules governing working and rest hours.

Practical impact: Limited. The conditions are cumulative and apply to a very restricted group of employees. For most employers, nothing changes.

Since January 1, 2026, employers must track teleworking days and temporary assignments performed outside Switzerland. The initial submission, covering 2026 data, takes place in early 2027. Procedures vary depending on the canton.

• Geneva: The teleworking rate will be included on the summary withholding tax report, in paper or electronic form, starting in January 2027. It will not appear on the salary certificate.
• Vaud: A certificate must be submitted to the cantonal tax administration by February 28, 2027, with a duplicate copy provided to the employee. It applies to all residents of France, reporting a 0% rate if no teleworking occurred. It can be submitted via Swissdec-certified software, through the administration’s web portal, or on paper.
• Other cantons: Please contact your cantonal tax administration for specific requirements.

On January 1, 2027, the federal act governing the automatic exchange of wage data with France enters into force (Federal Council press release of August 19, 2026). In practice, what you report to the Swiss tax authorities will be shared directly with the French tax authorities. Any error will be visible on both sides of the border.

• Draft a teleworking policy that establishes a clear framework.
• Cap teleworking at 40% and communicate the guidelines to all affected employees.

Maintain a calendar for each employee, tracking:

• days worked in Switzerland;
• teleworking days;
• assignments in France;
• assignments in other countries.

• Regularly verify compliance with the 40% threshold.
• Remember that Swiss employers cannot withhold French income tax on Swiss wages (Art. 271 of the Swiss Criminal Code). Employees remain individually responsible for filing their French tax returns.