How does wage portage work in Switzerland?
Want to know more about wage portage in Switzerland? In 2008, the Grand Conseil Genevois declared wage portage as a true tool for economic promotion. The practice has therefore developed widely not only throughout Switzerland but also attracts many French independent workers wishing to undertake a mission in Switzerland. However, wage portage in Switzerland has some particularities. This article provides you with all the key information on the subject: from the prerequisites to work in Switzerland to the advantages of benefiting from Swiss wage portage, including the status of the French worker in Switzerland.
The conditions to benefit from wage portage in Switzerland
The prerequisites
To benefit from wage portage in Switzerland, you must reside in Swiss territory and carry out a mission with a legal link to the country. You must sign a fixed-term (CDD) or indefinite (CDI) employment contract with an umbrella company established in Switzerland and perform a service on behalf of a local company.
💡Good to know: by opting for wage portage in Switzerland, you are considered a wage ported employee working internationally, even if you are geographically close to France.
The accepted sectors
In Switzerland, wage portage is reserved only for intellectual professions with predetermined skills, namely:
- IT and web;
- Engineering;
- Communication;
- Marketing;
- Human resources;
- Training;
- Logistics.
The professions concerned by wage portage in Switzerland are therefore more restricted than in France.
To learn more, check out our article on becoming a computer consultant.
The statuses of the French worker in Switzerland
Since Switzerland is not a member of the European Union, the French independent worker, depending on their mission in wage portage, has one of two statuses:
- The “detached” wage ported employee: the wage ported employee remains affiliated with the French social security system. This status concerns short-term missions, notably CDDs not exceeding three years, renewable once.
- The “expatriate” wage ported employee: the employee is affiliated with the Swiss social protection system or can request to join the Caisse des Français à l'étranger if the option is more advantageous. This status concerns indefinite duration missions.
💡Good to know: a work permit may be required depending on the geographical destination (border department or not). Inquire with your umbrella company.
The functioning of wage portage in Switzerland
Like French wage portage, Swiss wage portage follows a model of tripartite relationship materialized by two contracts: the employment contract between the consultant and the umbrella company and the mission (or service) contract between the umbrella company and the client company.
The wage ported employee finds a client company, freely defines their services and rates. They choose to work where they wish (in coworking, at home, on-site with the client, directly on-site…), hence the possibility of expatriation.
The umbrella company signs the commercial contract with the client company, invoices, and collects the payment. It then pays the wage ported employee after deducting fees, contributions, and taxes.
The social coverage of the wage ported employee in Switzerland
The French worker in wage portage in Switzerland benefits from the same social protection as a classic Swiss employee, namely:
- Unemployment compensation: you can receive Swiss unemployment insurance if you find yourself without a mission and without a job.
- AVS insurance (old-age and survivors): in most Swiss umbrella companies, you have the option to choose the desired level of coverage.
- Disability insurance (AI): as a wage ported employee, you will be covered just like a classic employee in case of disability.
- Accident insurance (SUVA): you are mandatorily covered by SUVA in case of professional and non-professional accidents.
In addition to social coverage, the Swiss wage ported employee also benefits from paid leave and a 13th month.
Check out our guide to learn everything about the regulations on paid leave in wage portage.
The advantages of wage portage in Switzerland
For the wage ported employee
Many French workers choose wage portage in Switzerland to benefit from a higher gross salary than in France and for the quality of life in the country.
💡Good to know: Switzerland attracts nearly 160,000 French expatriates each year.
By opting for the path of wage portage, you do not have to create a legal structure on-site, as the administrative procedures are handled by the umbrella company. This simplifies your expatriation, especially since regulations differ by canton. Wage portage offers you more flexibility in choosing your clients and your schedule. You have access to a local clientele thanks to the network of the Swiss umbrella company.
For client companies
Client companies also benefit from wage portage to acquire the skills they need. Wage portage allows them to reduce the constraints related to recruitment and save time in hiring. Unlike traditional hiring, the wage ported employee is operational immediately. Client companies also benefit from reduced payroll costs and expenses, as the wage ported employee is not part of the company's staff.
The essentials of the article summarized in 6 points
You now know the main principles of wage portage in Switzerland. Here are the essentials to remember:
- You must reside in Switzerland and sign an employment contract with a Swiss umbrella company on behalf of a local company.
- Wage portage in Switzerland is reserved for intellectual professions only.
- As a wage ported employee in Switzerland, you are either under the detached status for CDD missions, or under the expatriate status for CDI missions.
- The functioning of wage portage in Switzerland relies on a tripartite relationship between the consultant, the umbrella company, and the client company.
- The wage ported employee in Switzerland benefits from complete social coverage, like any Swiss employee.
- Wage portage in Switzerland attracts foreign independent workers due to its flexibility and standard of living, and client companies benefit from its ease of hiring.
And to go further, check out our dedicated guide on wage portage internationally.
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