Wage payments in foreign currency are permitted

In Switzerland, salary payments in foreign currencies are permitted, provided the employer and employee mutually agree on this in the employment contract. The following points must be observed:

1. agreement in the employment contract: payment in foreign currency must be expressly stipulated in the employment contract or by written agreement. Without such an agreement, payment of wages in Swiss francs is mandatory.
2. protection of the employee: The employee must not be disadvantaged by payment in foreign currency, for example due to unfavourable exchange rates or higher bank charges.
3. social security contributions: Even if wages are paid in foreign currency, social security contributions must be calculated and paid on the basis of the salary converted into Swiss francs.
4. tax aspects: The converted salary in Swiss francs is also relevant for tax purposes, as income in Switzerland is taxed in Swiss francs.