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Which sectors are in need of personnel or consultants in Switzerland at the beginning of 2022?

To understand in which economic sectors and for which professions the need for qualified personnel is increasing, we can rely on several reliable sources.

SECO's monthly labour market report

SECO's monthly labour market report is a very good indicator of the demand for qualified personnel in the various sectors of the economy.

For the year 2021, the national unemployment rate, seasonally adjusted, has decreased from 3.3% to 2.4%.

If we compare December 2021 and December 2020, it fell by 25.6%. In the same period, the number of unemployed persons aged 50-64 fell by 17.1% to 7'776 and the number of advertised vacancies rose by 88.4% to 47'531, of which 33'503 are subject to the obligation to advertise.

The instrument of compensation for reduced working hours (RHT) has done much to mitigate the negative effects of the crisis on companies and workers, but hiring intentions are at a historically high level for this first quarter of 2022.

According to the SECO report, between December 2021 and December 2020, the sectors that saw the largest absolute positive changes excluding hotels, restaurants, trade and maintenance or repair of motor vehicles are:

  • Construction and civil engineering
  • Professional, scientific and technical activities
  • Administrative and support service activities
  • Health and social work
  • Financial and insurance activities
  • Electrical engineering, electronics, watches, optics
  • Information and communication

These are economic sectors for which companies will need employees but also freelance consultants.

Manpower's Employment Outlook Survey

A very good indicator of the demand for qualified personnel is also the Swiss Employment Outlook Survey published by Manpower.

According to the latest survey, employers expect to increase their headcount in the first quarter of 2022 with net employment hires of +30%.

Hiring intentions are strong across the country, with Central Switzerland reporting that 50% of employers surveyed will hire, Mittelland 33%, Eastern Switzerland 38%, Zurich 33% and the Lake Geneva region 28%.

The growth sectors with the highest demand for qualified personnel are:

  • IT
  • Technology
  • Telecommunications
  • Computer Sciences
  • Communications and Media
  • Education, Health, Social and Government
  • Industry
  • Non-profit organisations

The Swiss Skills Shortage Index of the University of Zürich

Another indicator is the Swiss Skills Shortage Index of the University of Zurich (In German only).

According to the University of Zürich, the shortage of qualified personnel has increased significantly in the year 2021. The reason for this is the increase in the supply of employment contracts and the fall in the unemployment rate. The easing of the pressure on the skilled labour shortage due to the Covid-19 pandemic in 2020 is almost not felt anymore.

The following occupations are particularly affected:

  • Engineering
  • IT and technology
  • Human medicine
  • Pharmacy
Ingénieur, IT, Information, Communication, Informatique, Technologie,

Engineering, IT, Information, Communication, Computing, Technology: these sectors need qualified Consultants

Here are some more details and figures on these sectors which are the most promising and which lend themselves well to off-payroll working, payrolling in Switzerland.

According to the latest Unesco report, "Engineering for Sustainable Development", Switzerland, which is already facing a shortage of engineers, will see this shortage increase. According to the report, there will be a shortage of at least 25’000 engineers in Switzerland in the upcoming years in this field.

Following several EPFL studies, there is a strong demand for engineers in the following fields:

  • Cybersecurity
  • Data science
  • Digitalisation, digital transformation
  • Artificial intelligence
  • Cryptocurrencies
  • Digitalisation of construction (BIM)

According to the ICT journal, ICT for information and communication technologies, the IT market, which has already rebounded in 2021, stimulated by strong trends and those related to the pandemic, will continue to grow.

Switzerland will need some 117’900 additional ICT specialists by 2028. New graduates and foreign skilled personnel will not be enough to fill the gap and if training capacities are not increased, there will be a shortfall of 35’800 professionals.

Online businesses also need staff and consultants with demand increasing by 55% in 2020 and online logistics and online marketing roles being the most sought after.

A Capgemini study on IT budgets in 2022 for the DACH region (Germany, Austria, Switzerland) confirms that most companies and administrations are expected to invest a larger share of their IT budget in systems modernisation, while the share of spending on maintenance is decreasing.

The opportunity of off-payroll working, working with freelance consultants using our Umbrella Company

Payrolling, off-payroll working allows a company to work with people without having to formally recruit them. It allows consultants to find and work on mandates without having to become independent, while receiving a salary and being assured that all social charges, insurance and insurance cover is paid.

For the company seeking to work with one or more consultants for a short or medium term mission, payrolling allows:

  • Avoid hiring permanent staff by not tapping in the payroll budget
  • To establish contracts with highly qualified consultants
  • Free yourself from the tasks of managing salaries and personnel
  • Work with consultants based in Switzerland or across the border
  • Reduce the tax costs of your operations

The consultant is hired by Thalent who sends an invoice at the end of each month for the services provided, which you pay as you would when paying any other service company or supplier.

By using external service providers on a freelance basis, your company avoids numerous restrictive and time-consuming administrative procedures and can optimise its project outsourcing strategy.

The opportunity of payrolling, off-payroll working, for the Consultant

Thalent SA establishes, takes charge of, manages or offers :

  • A salaried employment contract (fixed-term, open-ended or hourly)
  • Contract with your client(s)
  • Invoicing, reminders, VAT management
  • Reimbursement of travel and related expenses
  • Free advice for customer contracts
  • Relations with the tax administration, the Cantonal Office of Population and Migration (OCPM) which also gives out the work permits in Switzerland
  • Paid holidays, the payment of the withholding tax
  • Full social security cover with a choice of options for the LPP pension fund, 2nd pillar :
    • AHV: Old-age and survivors’ insurance
    • AI: Disability insurance and income compensation benefits
    • AAP: Occupational Accident Insurance with SUVA and supplementary insurance
    • AANP: Non-occupational accident insurance at SUVA and supplementary insurance
    • RC: Adapted professional liability insurance
    • MUV/AMat/MUV: Maternity allowance
    • ALV, AC, ALV:Unemployment Insurance
    • OP/LPP/BVG: Pillar 2 pension fund with a full choice of options among the plans available from the CIEPP Fund of the Fédération des Entreprises Romandes (FER)

You already have, or would like to have, or are about to sign a contract with a client? Then contact us now for more information and execute the mandate as a Freelance Consultant at Thalent.com.

Besure to regularly check our homepage and follow us on our social networks for more information regarding payrolling and becoming an independent consultant. If you like our posts we would be thankful if you could give us a like on Linkedin or Facebook!

Author: KF

The Thalent team wishes you happy end of the year celebrations and a happy new year 2022!

Dear clients, dear partners, dear consultants, dear future consultants!

This second consecutive year of Covid-19 has required a lot of effort on both a private and professional level.

Nevertheless, the Thalent consultants and employees were able to rise to the challenges and adapt quickly to the situation in order to find constructive solutions for their customers.

We would like to thank you for the trust you have placed in Thalent, its know-how and its employees throughout the year 2021.

We wish you and your loved ones a happy holiday season and all the best for the year 2022. May this year bless you with health, happiness and success!

We look forward to continuing our successful collaboration in the New Year.

We wish you all the best,

The Thalent.com team

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    Working as a frontalier with a Swiss cross-border commuter status using our payroll company

    Who can benefit from payrolling, off- payroll working in Switzerland?

    You are an individual or a consultant living in a country bordering France, Germany, Italy, Austria or any other EU/EFTA state:

    Payrolling, off payroll working with the Swiss cross-border commuter status is the ideal solution to develop your activity without having to acquire the status of an Independent/Self-Employed which is not easy to obtain, if you are in the following situations:

    • You have proposals for mandates in Switzerland or would like to find clients there to develop your business while being or becoming a Swiss border worker
    • You have already obtained a consulting mandate, a contract as a consultant
    • You wish to evaluate a business creation project, a start-up projetc before creating your own entity
    • You are prepared to return home at least once a week

    You are a company based in Switzerland or abroad and you want to develop your business or engage independent Consultants:

    For a company in Switzerland or abroad, to use a payroll or umbrella company is the ideal solution to get people with Swiss cross-border commuter status to work on a mandate or a mission they have just obtained or to develop their business quickly, without having to hire them themselves.

    What is payrolling, also called off-payroll working or “wage portage” in a few words?

    Payrolling is a hybrid form of work, halfway between self-employment and employment.

    It allows an individual to carry out a mandate for a company in an autonomous way while benefiting from the social coverage provided by the status of employee.

    Thalent SA signs a service contract with the client company that needs to work with the individual also called the consultant, and with the latter a Swiss employment contract.

    At the end of each month, Thalent invoices the client company and pays a salary to the individual minus commission and employer and employee obligatory social charges.

    As a consultant with Swiss cross-border commuter status working for one or more clients, the individual benefits from the full social security coverage available to all employees in Switzerland, including unemployment and full accident insurance to prevent any risks associated with business travel.

    From a commercial point of view, they manage and prospect their clients in Switzerland independently. They negotiate alone or with the help of Thalent  their rates and the terms of the mandate with the client company.

    On the contractual level, the person is autonomous. They manage and prospect their clients in Switzerland independently. They negotiate alone or with the help of Thalent their rates and the terms of the mandate with the client company.

    Swiss cross-border commuter work permits, Swiss employment contracts, social security coverage and other administrative services

    Thalent.com takes care of the following tasks:

    • Arrangements for a Swiss cross-border commuter work permit G
    • Employee working contract (definite, non definite period or hourly contract)
    • Drawing up of service contract with the client company
    • Invoicing, management of collections or reminders
    • Managing VAT, if you are concerned
    • Management and payment of employer and employee social security contributions and all accident insurance
    • Reimbursement of travel and other business expenses
    • Tax optimisation and advice

    The status of cross-border commuters has changed

    EU/EFTA nationals are no longer subject to border zones. They can live in any EU/EFTA state and work anywhere in Switzerland.

    Citizens who live in an EU/EFTA country and work in Switzerland (employees or self-employed persons with their company headquarters in Switzerland) are considered to be border residents. The only rule is that these workers are required to return to their main residence (abroad) at least once a week.

    The cross-border commuters work permit is issued by the cantonal authorities at the place of business.

    Advantages for Swiss cross-border commuters

    • Be able to reside in the border area or in an EU/EFTA country but be able to work in Switzerland
    • Be fully insured for social security, compulsory labour insurance and pensions
    • Receive a salary paid at the end of the month based on the turnover and smoothed over a determined period of time
    • As Thalent performs the administrative and accounting tasks, the consultant can devote himself/herself to the execution of his/her mandate(s)

    Advantages for companies

    • Establishing the relationship is quick and easy: the person only needs to be domiciled in an EU/EFTA country and to return home at least once a week
    • Compliance with the law. The Swiss or foreign company can be sure to work with a person who is in full compliance with Swiss law
    • You gain flexibility as you can cope with higher variations in workloads without having to increase the payroll
    • Cross-border consultants for the Swiss market are hired with a Swiss employment contract
    • We take care of the formalities for the G work permit
    • The employee works for your company
    • At the end of the month we send you an invoice containing a summary of the work done by the consultant for you
    • The consultant then receives a salary like any other employee
    • All charges are paid
    • You have no start-up or exit fees
    • There is no minimum contract duration
    • You benefit from the advice of our experts
    Frontaliers-working

    Some figures on cross-border commuters in Switzerland, their number and occupation?

    Number of Swiss cross-border commuters:

    According to the Federal Statistical Office (FSO) publication «Cross-border commuters in Switzerland from 1996 to 2020» there are 343’000 cross-border commuters working in Switzerland at the end of 2020.

    The largest number, 90’000 people, work in the Canton of Geneva.

    Residence:

    Most of them come from neighbouring countries and work in a neighbouring canton, in the border regions where they make up a significant proportion of the workforce.

    More than half of them live in France (55%), almost a quarter in Italy (23%) and almost a fifth in Germany (18%). Less than 3% of cross-border commuters come to work in Switzerland from Austria or Liechtenstein, while those from other countries accounted for 0.7% of the employed population.

    % of active, working population:

    Cross-border commuters account for 6.7% of the employed population, and their share of total employment was 29% in the canton of Ticino and 24% in the canton of Geneva. The proportion of cross-border commuters is also high in the cantons of Jura (19%), Basel-Stadt (18%), Basel-Land (14%) and Neuchâtel (12%).

    Occupation of cross-border commuters by sector:

    The majority of cross-border commuters, like the resident workforce, work in the service sector. 77% of the resident workforce and 67% of cross-border commuters work in the services sector.

    Many consultants using off-payroll working are Swiss cross-border commuters

    Would you like to become a Swiss cross-border payrolling consultant or are you a company that needs to hire external consultants using our umbrella company?

    Contact us now for more information!

    Besure to regularly check our homepage and follow us on our social networks for more information regarding payrolling and becoming an independent consultant. If you like our posts we would be thankful if you could give us a like on Linkedin or Facebook!

    Author: KF

    You are planning to develop your business in Switzerland or Europe as a foreign company. Why not start quickly thanks to Thalent.com, payroll company?

    Develop the activity of your foreign company in Switzerland

    A certain number of American, French, English, Chinese or even companies from other countries aim to develop their activity in Europe or in Switzerland in order to expand their market. However, many of these companies do not yet have a base in Europe or Switzerland.

    Switzerland for information technology, life sciences or medtech

    Switzerland attracts many foreign companies in the fields of information and communication technologies, life sciences or medtech for image reasons.

    According to the Conference of Cantonal Heads of Economic Affairs (CDEP), 220 foreign companies have chosen to establish themselves in Switzerland in 2020. The majority of the companies concerned come from France, the United States and China.

    Setting up a company involves risks and takes time

    Setting up a company such as a Joint stock company or a Limited liability company involves significant costs. There are the costs of setting up the company, the notary's fees, the lawyer's fees, the costs of registering patents, the costs of renting business premises, and all the other administrative costs. It is therefore a significant financial risk and the set-up process takes some time.

    Use Thalent for the work with your specialists team or development officer

    Foreign companies usually have identified competent people they would like to work with in their network or among specialists in order to develop their business.These people have European or Swiss nationality, live in Switzerland or in the neighbouring area or can come and live there.

    Foreign company in Switzerland

    Obligations for foreign companies from America, France, UK or China

    These foreign companies, not having a company yet, are obliged to employ these people through another European or Swiss company.

    You are such a foreign company. Why not call on us for your start-up in Europe or Switzerland?

    Fast service set-up

    Setting up the service is very quick and simple for Thalent: the person chosen by the company must be Swiss or of European nationality and must be domiciled in Switzerland or in the neighbouring regions. Thalent then makes a proposal for a permanent employment contract. Thalent then also signs a service contract with the foreign company.

    To increase the credibility of this person, he or she can work with the contact details of Thalent.com This is left to the foreign company's choice.

    Compliance with the law

    By proceeding in this way, the foreign company, whether American, French, English or Chinese, is certain to have an employee in full compliance with Swiss law.

    From an administrative point of view, it is also extremely simple because Thalent sends an invoice to the foreign company.

    The consultant then receives a salary at the end of each month which includes all social charges and covers also all compulsory insurances, such as accident insurance for example.

    Many companies have used our service

    We have set up this service for a large number of companies. When their business has developed effectively, the company may decide to set up a branch office and thanks to our network, Thalent can help the company with all the formalities.

    The advantages in brief:

    • We hire your employee(s) for the Swiss market with a Swiss permanent employment contract
    • We take care of the work permit formalities if necessary
    • The employee works for your company
    • At the end of the month we send you an invoice
    • The employee receives a salary like any other employee
    • All social charges are paid
    • You have no registration or exit fees
    • There is no minimum contract period
    • You benefit from expert advice

    Contact us now for more information!

    Besure to regularly check our homepage and follow us on our social networks for more information regarding payrolling and becoming an independent consultant. If you like our posts we would be thankful if you could give us a like on Linkedin or Facebook!

    Author: KF

    A comparison between Payrolling and the status of an Independent/Self-Employed

    Payrolling or the status of an Independent/Self-Employed. What is better and why?

    When someone chooses to become self-employed, the question of the legal status arises as one has to start invoicing one or more clients. Is it better to become self-employed or to work using a payroll or umbrella company?

    In order to choose between payrolling and self-employed status, it is essential to be familiar with the specific characteristics of both statuses. In this article we summarise their main characteristics and provide an advanced comparison table which is also available in .pdf.

    1. Independent or self-employed status in Switzerland

    In Switzerland a person is obliged to have his status recognised by the cantonal compensation office.

    The compensation office checks whether the status of self-employed person can be granted according to the criteria of the Federal Law on Old Age and Survivors' Insurance (OASI), the directives of the Federal Social Insurance Office (FSIO) and the case law of the Federal Court (FC).

    The AHV/IV Information Centre provides a list of compensation offices. In Geneva, for example, the main AHV compensation office is the OCAS. It is this office that can recognise your self-employed status.

    The particularities and difficulties are as follows:

    • To obtain the status, you have to provide a whole set of documents and prove that you have at least 3 clients
    • One of the particularities in Switzerland is that you must have already started your activity
    • The process takes several weeks and the status is not necessarily granted
    • You cannot be insured for unemployment
    • If you are granted the status, you have to contract by yourself:
      • An accident insurance covering occupational and non-occupational accidents and occupational diseases
      • A loss of earnings insurance which allows you to receive your salary in the event of illness
      • A professional liability insurance, which covers material and physical damage caused to third parties in the course of professional activity
      • Depending on the activity carried out, some insurance policies are compulsory (civil liability, fire insurance), others optional (legal protection, theft, etc.)
    • You can use your 2nd pillar and withdraw it, but you must withdraw it in its entirety. If you are married, your spouse must approve the withdrawal
    • You must keep accounts for the annual tax return and are subject to VAT on sales over CHF 100,000

    2. Payrolling over an umbrella company  in Switzerland

    The particularities and advantages are as follows:

    • Payrolling involves a three-way contractual relationship:
      • You, the Consultant
      • Your client company
      • The payroll or umbrella company, such as Thalent SA
    • 2 contracts are established:
      • A permanent employment contract between you, the employee and the payroll company
      • A service contract between the client company and the payroll company


    The big advantage of Thalent is that you receive a permanent contract, as opposed to other companies that establish payrolling contracts. Contact us to find out more.

    • You are fully covered by social security: unemployment, AVS pension, 2nd pillar LPP
    • All accident insurance, maternity allowance are included
    • You benefit from paid holidays
    • You can start your activity directly if you have only one client, for example, once you have signed the 2 contracts mentioned above
    • You do not have to worry about administrative tasks such as invoicing, reminders, work permits
    • You don't have to do any accounting
    • A company like Thalent will help you to optimise your tax returns
    • The payroll company charges you of course a fee for these services

    Our opinion and our comparison table

    If you don't know how to go about it and how the independent status works, payrolling is undoubtedly the most effective solution. Moreover, you can start directly and if you work with Thalent without any start-up costs.

    In our opinion, it is better to start your activity as an independent, self-employed only once you have the necessary know-how and number of clients, to become so.

    The fact that you cannot benefit from unemployment insurance will not change if you are self employed in Switzerland.

    Our experience :

    At Thalent some of our consultants who started out as payroll Consultants have gone on to become self-employed or have set up a company, only to return later again to payrolling  because it was not worth it for them. It all depends on your situation, your needs, the way you work, the type and number of your clients and whether you want to take care of the administration or not.

    Now go straight to the:

    Comparison table between Payrolling and the status of an Independent/Self-Employed

    Or download the corresponding .pdf!

    Besure to regularly check our homepage and follow us on our social networks for more information regarding payrolling and becoming an independent consultant. If you like our posts we would be thankful if you could give us a like on Linkedin or Facebook!

    Author: KF

    Interview of Pierre Strübin - Chairman of Thalent.com

    Interview of Pierre Strübin – Chairman of Thalent

    1. Pierre, you are a multi-entrepreneur and President of the Foundation Board of the Fondation Genevoise pour l’Innovation Technologique - Fongit which is Switzerland’s premier innovation incubator supporting innovative tech ventures in Geneva.​ Can you tell us a bit more about your career path?

    I am married, with 4 children. I hold an engineering degree from the EPFL, have additional training in finance and also hold an MBA.

    I worked in industrial companies such as Sécheron-ABB, LEME and an international organisation. Then I was appointed director of Fongit and created the company Thalent.com in 2001. Thalent is therefore 20 years old in 2021.

    The company was created to respond to the demand of experienced consultants who had mandates but no company capable of managing the administrative part of the work, like client offers, client invoicing, payment of salaries and social charges.

    2. Is payrolling aimed at senior executives?

    We have to admit that most of our consultants are experienced people with the ability to execute mandates and who are considered by clients as experts.

    It is true that they are often seniors, but we also have very competent people in their thirties.

    3. Payrolling is a subject that is being talked about a lot at the moment. Can you tell us a little more about it in relation to the services of your company Thalent SA?

    The consultant can concentrate on his job, which is to deliver high added value services. Thalent takes care of the administrative and invoicing part and makes sure that the consultant can work in an environment that complies with the legal framework concerning employment.

    4. Your company also aims to help firms abroad looking to expand into Switzerland, how is this happening?

    We would be more than happy to do so.  Often companies want to have a bridgehead in Switzerland or in Europe. Switzerland is a privileged place, especially Geneva and our company is located a few minutes from the Geneva airport. This makes it very easy to get to.

    Often we employ a person, domiciled in Switzerland, who, through our company, works within a legally compliant framework and we invoice the foreign company for the services provided by this person, settling of course all the issues related to VAT if applicable.

    After the first phase the company can then decide whether it wants to establish a subsidiary in Switzerland and in this case we can assist it in establishing a Société Anonyme SA or a Société à Responsabilité Limitée SARL thanks to the excellent connections we have with notaries or lawyers.

    5. You have a company in neighbouring France, what is its function?

    We do have a company that is completely independent of the Thalent structure in Geneva.

    It is an SAS, a simplified joint stock company, with which we work closely and which allows us to carry out operations in the European community in the event that having a company in Switzerland is not optimal.

    We use our French company when, for reasons mainly related to VAT, it is easier to work with a company established in France and another country of the European Community.

    6. So you can work with companies all over Europe but also all over the world?

    Yes, we can do this directly from Thalent SA, for customers located in Europe and outside Europe such as the United States, Japan and the United Kingdom. We work with the following 4 currencies: EUR, USD, GBP, CHF.

    7. What do you think of the current situation of the Swiss labour market?

    At the moment, we can see that for specialists, the current situation on the labour market is very favourable. As consultants are often very competent people, they have no difficulty in finding mandates.

    This has been the case for several years now and perhaps the health crisis has made it even more so. The more specialised people are, the more in demand they are, and the more generalist skills people have, the more difficult it is for them to find work.

    8. How does Thalent differ from other umbrella companies for the consultant?

    We are one of the first companies active in this field in Switzerland with an experience of over 20 years. Our company is characterised by long-term relationships with consultants, as some of them have been working with Thalent for more than 15 years.

    For these people, we have the advantage of being able to offer permanent contracts and not leasing contracts. The consultants can therefore present themselves to their clients as part of a team and a company with an excellent reputation.

    9. Are there any values that you hold dear?

    Of course there are. I would say the seriousness of our work, an extreme flexibility accompanied by a very high reactivity, a lot of care given to the service we provide and the personal contact with the consultants. There is a great deal of mutual trust between the company and the consultants.

    10. What type of profiles does Thalent have among its ranks?

    We have a technical focus, engineers or technicians, but we also have consultants active in business development, project management, human resources, translation, coaching, IT.  

    11. You are an engineer, is there anything that an engineer will find in addition at Thalent because of that?

    Very clearly a general understanding of the client and the fact that we can speak the same language with the client.

    12. Entrepreneurship can be facilitated by an umbrella company. Can you explain this a little more?

    The entrepreneur does not need to register as a freelancer, does not need to deal with all the administrative tasks and can concentrate on his core business. We also provide the necessary advice on drawing up offers and contracts with clients.

    13. Can you give us 5 advantages of beeing a payrolling consultant?

    • Administrative simplification
    • Entitlement to unemployment benefits
    • Possibility of distribute the income as a salary over a long period
    • Quick start: no administrative procedures
    • Recognition by the market, which tends to give mandates to established companies rather than to self-employed people

    14. Is there any advice you would give to a young entrepreneur?

    The first advice I would give is to join us. This will give her or him the support they need to launch their business. It is up to him to decide whether he wants to register as a freelancer or create his own company. What is interesting to mention is that in the last ten years, none of our consultants have preferred to start their own company.

    In some cases consultants have even set up their own company within Thalent, i.e. we have had several consultants working for the same client on the same project.

    15. Do you have a success story that you have witnessed to share?

    In addition to your previous question. One of our consultants who had achieved a significant turnover decided to set up her own company. After a few years she decided to put it on hold and to join Thalent again because she had noticed that the results were inferior both in terms of economics and management.

    Interview by KF

    Besure to regularly check our homepage and follow us on our social networks for more information regarding payrolling and becoming an independent consultant. If you like our posts we would be thankful if you could give us a like on LinkedIn or Facebook!

    What is Payrolling, also called “Wage Portage” in Switzerland? Part 1/2

    Have you ever heard of Payrolling, also known as "Wage Portage"?

    Payrolling, a service proposed by our Umbrella Company, is booming in Switzerland.

    It is a form of employment that offers many advantages for both long-term and short-term contracts and is equally suitable for both:

    1. Individuals wishing to become self-employed
    2. Companies wishing to work with staff without having to hire them

    It allows you to work in a very flexible way and to reduce administrative, accounting and legal constraints.

    It is based on a legal framework that allows a person to be employed by an Umbrella Company which is providing the payroll service such as Thalent.com and to contribute to social insurance while negotiating mandates with clients in a completely independent manner.

    1. As an autonomous, independent person:

    The main advantage is that you can work as a self-employed person but with the status of an employee and this without having to set up a company.

    You benefit from full social security coverage, because you become an employee of the umbrella company but manage your projects and clients in a completely independent way.

    • You are fully covered by social security: unemployment insurance, (OASI/DI, AVS/AI, AHV/IV) pension, 2nd pillar LPP, accident insurance, maternity benefit, etc.
    • You benefit from paid holidays
    • You avoid all the time-consuming compulsory administrative tasks that self-employed workers have to take care of
    • You can concentrate on your business without having to worry about accounting, legal and administrative operations

    We speak of a hybrid status for the payrolling person who is using wage portage. This way of working can be used by anyone who is entitled to work in Switzerland.

    At Thalent.com we call the freelancer who is using our payroll services, a Consultant.

    2. As a Swiss or foreign company

    If your company is looking to recruit one or more employees for a short or medium-term assignment, payrolling or “wage portage” allows you to:

    • Avoid having to increase the number of permanent employees in the wage bill
    • Establish service contracts with consultants with expertise that you do not have in-house
    • Work with consultants based in Switzerland
    • Free you from payroll and employee management tasks
    • Reduce the tax costs of your operations

    The contractor, or as we call him the Consultant, who is using the payroll service is employed by our Swiss Umbrella Thalent.com and performs a service for you. He does not have the status of a self-employed person and you do not need to hire him.

    Thalent.com sends you an invoice at the end of each month for the services performed, which you pay as when you would pay any service company or supplier.

    By using external payroll service providers, your company avoids many restrictive and time-consuming administrative procedures and will be able to optimise its project outsourcing strategy.

    3. Thalent.com services for the Consultant

    These are the services that Thalent.com covers for the consultant :

    • Salaried employment contract (fixed-term, open-ended or hourly)
    • Invoicing and reminders, VAT management
    • Reimbursement of travel and related expenses
    • Free advice for customer contracts
    • Relations with the tax administration, the inhabitant and working permits office
    • Paid holidays
    • Withholding tax
    • Full social security cover with a choice of options for the LPP pension fund, 2nd pillar :

    AHV: Old-age and survivors' insurance

    AI: Disability insurance and income compensation benefits

    AAP: Occupational Accident Insurance with SUVA and supplementary insurance

    AANP: Non-occupational accident insurance at SUVA and supplementary insurance

    RC: Adapted professional liability insurance

    MUV/AMat/MUV: Maternity allowance

    ALV, AC, ALV:Unemployment Insurance

    OP/LPP/BVG: Pillar 2 pension fund with a full choice of options among the plans available from the CIEPP Fund of the Fédération des Entreprises Romandes (FER).

    4. Contracts and 3 party relationship

    Wage portage implies a 3 party contractual relationship:

    1. The Consultant, the person who is Payrolling and performing the service 
    2. The "client" company
    3. The Wage Portage or Payroll company, such as Thalent SA for example

    This tripartite relationship involves 2 contracts:

    • A contract of employment between the freelance Consultant and the Umbrella Company
    • A service contract between the “client” company of the freelance Consultant and the Umbrella Company

    As a Consultant, you are legally employed by our payroll company and perform services for the "client" company. You receive a salary and Thalent SA pays the social insurances (employee and employer's share) as well as other mandatory charges.

    As the “client” company, you are invoiced by the umbrella company which will also take care of all the various administrative tasks on behalf of the Consultant who is using the Payroll services.

    5. Salary of the Consultant, treasury, payment of client invoices

    As the Consultant, you send the umbrella company at the end of each month an activity report that will serve as the basis for invoicing the "client" company.

    The umbrella company will then pay you your net salary which is calculated from the amount invoiced to the "client" company, after deduction of employee and employer charges and deductions regarding withholding tax if applicable.

    As for a self-employed person you can calculate your salary using our salary simulator.

    The payroll umbrella company receives the payment of the invoices, but Thalent will pay you at the end of the month, before the client has paid his invoice. This means that you receive an advance on your salary because the client has not yet paid.

    This cash advance is therefore an advantage, because you do not have to wait for your client's payment to receive a salary.

    Not all umbrella companies give this cash advance but with Thalent.com you will benefit from it automatically.

    6. Jobs and sectors

    Payrolling works well with a multitude of jobs and sectors:

    Information Technology

    Engineering

    Consulting

    Linguistics and translations

    Environment

    Marketing and communication

    Home Office, Remote Working

    Digital

    Quality Control and Quality Assurance

    Training

    Human Resources

    Coaching

    Sales and Business Development

    Management

    Accounting and Fiduciary

    You can find the The second part of this article here on our blog.

    Besure to regularly check our homepage and follow us on our social networks for more information regarding payrolling and becoming an independent consultant. If you like our posts we would be thankful if you could give us a like on Linkedin or Facebook!

    Author : Kamil Fetouni

    Welcome to our new website!

    We are pleased to present to you our new visual corporate identity and website.

    We have made the visual identity more modern and have implemented new functionalities to ease the process of contacting us. We now also offer simple, clear and intuitive ways to find information about our umbrella company and payrolling which is also called wage portage.


    The site is now published in 3 languages including on social networks, so we can better cover Switzerland, in particular the Swiss German part.

    We also want to address a broader audience of consultants or companies in Switzerland or abroad.

    Two of the new features of our new website:

    • Our blog which allows us to share with you actualised information on payrolling for autonomous consultants, information about the job market, our news, news from our sector, events, articles on personal development or coaching, on how to develop your business or interviews with consultants.
    • Our Hire a consultant profile section that allows you to search in our database of consultants that are available for additional work. You can search by keywords and then contact them through us.


    We hope you enjoy browsing through our new website and hope that you will find relevant information.

    Please do not hesitate to contact us if you have questions or need specific information about our payroll, wage portage service.

    Your Thalent.com Team

    Credits:

    Kamil Fetouni: Marketing concept, copywriting, Projectmanagement

    Mark Streatfield: Visual concept and Design