After a tumultuous two years marked by the introduction of provisions related to Covid-19 and paid leave, 2023 promises to be quieter but no less significant. In this year, there will be crucial changes in the Swiss labor and employment laws. From social security contribution adjustments to the implementation of new data protection provisions, there are several key trends and updates to keep an eye on. As a business owner, HR professional, or employee, it's important to be aware of these changes to ensure compliance and avoid legal issues.
In this blog, we'll dive into the most important trends and developments related to labor and employment law in Switzerland in 2023. By the end of this overview, you'll have a solid understanding of what to expect and how to navigate the latest regulations. So, let's get started!
New Data Protection Law Provisions Will Enter Into Force on 1 September 2023
As we have already informed our clients in the 2022 September Employment Law tracker, new data protection provisions that will also affect employment relationships will enter into force in fall of 2023. It's essential for companies to ensure they are compliant with these new provisions before they take effect.
No Impact Rule for Social Security for Cross Border Commuters Extended until June 2023
Switzerland will continue a flexible application of the social security rules for remote workers that were introduced during the pandemic until the end of June 2023. This extension of the so-called "no-impact policy" allows frontier workers to continue to work from home without becoming subject to social security in their country of residence, even if they work from home for more than 25%.
It is very likely that even after the expiry of the special regulation on 30 June 2023, the social security subordination rules will be designed in such a way that more than 25% remote work can be performed in the country of residence without changing the social security jurisdiction. A possible implementation will be discussed in the coming months at the European level and between Switzerland and its neighboring countries. We will keep our clients updated about further developments on this topic.
New Adoption Leave Entered Into Force on 1 January 2023
The population's need for legally anchored, contemporary parental leave models has already become apparent in the past. As of January 1, 2023, the entitlement to a two-week adoption leave comes into force for adoptive parents (new Art. 329j of the Swiss Code of Obligations [“CO”]). This new provision is a significant step forward in supporting adoptive parents in Switzerland and ensuring their rights are protected.
Changes to Swiss Social Security Contributions in 2023
As from 1 January 2023, the solidarity percentage for contributions to the unemployment insurance (ALV) no longer apply. This means that contributions are no longer due on salary components exceeding CHF 148,200 per year. Up to this limit, the contribution continues to be 2.2% (total contribution of employer and employee). Employers and employees must each pay half of this amount. This change will have significant implications for companies and their employees, and they should ensure they are aware of how it will affect them.
Adjustment of Limit Amounts of Occupational Pension Funds (BVG/LPP) since 1 January 2023
The increase in AHV/AVS pensions from 1 January 2023 is resulting in increases in the entry threshold for the BVG/LPP. The threshold newly amounts to CHF 22,050. The coordination deduction is being increased to CHF 25,725, resulting in a maximum coordinated BVG/LPP salary of CHF 62,475. These changes affect all companies and employees who are part of the mandatory social insurance scheme, and it's important to ensure compliance with the new provisions.
2023 is shaping up to be a year of significant developments in Switzerland's labor and employment laws. By keeping up with the trends and developments outlined in this article, businesses and individuals can prepare themselves for the changes ahead and ensure that they are operating in compliance with the law.
As always, seeking legal advice and consulting with HR professionals can help navigate the intricacies of Switzerland's employment law landscape and ensure that everyone involved is well-informed and protected.
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