Recruiting internationally: social security in Switzerland, pitfalls and best practices

Recruiting internationally: social security in Switzerland, pitfalls and best practices

Recruiting outside Switzerland, hiring a cross-border worker, or authorizing teleworking from abroad quickly changes the rules regarding social security contributions. The risk is not only administrative: choosing the wrong "competent country" can lead to double contributions, gaps in coverage, or complex issues in the event of a claim.

This book makes a simple promise: to help you manage your social insurance decisions in Switzerland with a clear method (qualify, document, monitor). By the end, you will know how to frame the scenario, obtain the correct supporting documents (especially A1), and establish a robust foundation for your Old-Age and Survivors' Insurance (OASI), Accident Insurance (LAA), and Occupational Pension Plans (LPP) when Switzerland has jurisdiction.

Determining the competent country: the rule that governs everything

Before discussing insurance policies, it's necessary to decide which country has jurisdiction over social security. This decision determines where contributions are due and which system applies.

The operational benchmark: where is the work physically carried out?

In Swiss-EU/EFTA coordination, the physical location of the work is a decisive criterion. The explanatory memorandum to the framework agreement on cross-border teleworking stipulates that a change in legislation may occur as soon as teleworking in the country of residence represents 25% or more of the work.

In Switzerland, the Federal Social Insurance Office (FSIO) more broadly reminds that anyone who works or lives in Switzerland is insured in the social security system, with an obligation to contribute according to their status.

In practical terms, a "flexible" teleworking clause that is not followed is a risk area: if the actual organization deviates, the competent country may change without the company realizing it.

EU/EFTA: Coordination and Evidence (Form A1)

In Swiss-EU/EFTA relations, the coordination rules are based on Regulations (EC) No 883/2004 and 987/2009. The central piece of evidence is form A1: it confirms in which country the contributions must be paid.

From a governance perspective, treat A1 as a compliance document: without A1, you do not have "portable proof" in case of an audit, and you run the risk of having to justify yourself afterward.

A framing method in 5 questions

1. Country of residence and country of actual work (one country, or several)

2. Cross-border teleworking: what proportion of the total time is spent in the country of residence?

3. Temporality: temporary mission (secondment) or permanent organization?

4. One or more employers, and where are they located?

5. What evidence is required: A1, teleworking agreement, time tracking by country?

Social insurance in Switzerland: what is mandatory, what is up to you

When Switzerland is competent (activity in Switzerland, or maintenance under Swiss regime via coordination/certification), the challenge is to establish a coherent and verifiable foundation.

AVS/AI/APG and AC: affiliation and accounting discipline

The employer must be affiliated with a compensation fund. Unaffiliated employers must register, and this registration must take place when hiring the first employee.

For employees, the OFAS recalls the principle of parity: AVS/AI/APG/AC contributions are paid by the employer, who takes half of them into account.

LPP: entry threshold and affiliation (with a catch-up mechanism)

The SME Portal indicates the LPP entry threshold in the mandatory part (CHF 22,680 in 2025) and the ceiling of income subject to insurance (CHF 90,720 in 2025).

If the employer is not affiliated with any registered pension institution, the compensation fund may require affiliation within two months; failing that, it may notify the employer to the supplementary institution for retroactive affiliation.

LAA: mandatory from day one, and an "8-hour" rule to be aware of

Accident insurance (LAA) is mandatory for employees working in Switzerland. The insurance obligation applies from the first day of work, regardless of whether the employment is permanent or temporary.

A point to include in your HR controls: if the weekly working time with the same employer is less than eight hours, the mandatory coverage only covers occupational accidents (not non-occupational accidents).

The OFAS also recalls the financing logic: the employer is liable for premiums for occupational accidents/diseases (AAP), while the employee is liable for premiums for non-occupational accidents (AANP).

Cross-border workers and LAMal: an HR issue to secure

Health insurance is not an "employer-provided" benefit, but onboarding a cross-border worker is risky if the issue isn't properly addressed. The Federal Office of Public Health (FOPH) indicates that individuals who do not wish to be insured in Switzerland must submit an exemption request within three months of the start of their employment contract to the competent authority in their canton of employment.

What needs to be documented

• Contract and place of work (including teleworking), start date

• Country of residence, status (border worker, seconded employee), area of travel

• Time allocation by country and monitoring method

• A1 certificate (if applicable) and validity period

• Affiliations and numbers: compensation fund, LAA, LPP

• Internal accounting procedure (who does what, when)

International recruitment: typical scenarios and tipping points

The goal is not to memorize rules, but to recognize situations that "tipping point".

Quick framing chart

Scenario	Decision to be made	Key document	Tilt to watch
Working in Switzerland	Swiss basic income (AVS, LAA, LPP if conditions apply)	Affiliations + contracts	Working remotely abroad is becoming commonplace.
Cross-border worker with teleworking (signatory states)	Continued employment may be permitted under the legislation of the employer's registered office if teleworking is less than 50% (max 49.9%) and upon request.	A1 (teleworking)	Standard rules apply from 25% in the state of residence; other activities in the state of residence
Extensive remote work / multi-activity	Possible reclassification to the State of residence (or complex case)	Analysis + evidence	Exceeding the thresholds, second employer, self-employment
Detachment (mission)	Continued under the regime of the country of origin if conditions	A1 (detachment)	Duration typically 24 months and management of extensions

Reference points: 25% and teleworking <50% in the framework agreement; implementation OFAS/CFC.

Reference sources: secondment, 24 months and A1 via ALPS.

Mini case study 1: Recruiting a cross-border worker with 2 days of teleworking

A Geneva-based SME is recruiting a project manager based in France. The planned work schedule is: 3 days on-site in Switzerland, 2 days of remote work in France (approximately 40%).

Useful decisions:

• Check whether the case falls within the framework agreement and whether the States concerned are signatories. In this context, the OFAS indicates that it is possible to carry out up to 50% (max 49.9%) of cross-border teleworking while maintaining the jurisdiction of the State where the employer's headquarters are located, for signatory States.

• Obtain and archive the A1 certificate, via the compensation fund (ALPS).

• Integrate cross-border health insurance into onboarding (3-month period for possible exemption).

Monitoring point: a "2-day" agreement often becomes "3 days" over time. Without monitoring, you only see the change when you have an audit.

Mini case study 2: Recruiting a specialist based abroad (100% remote)

A Vaud-based SME is recruiting a data scientist based in Spain, working entirely from Spain.

Here, the issue is no longer the teleworking of a cross-border worker, but rather the main place of work abroad. The framework agreement memorandum reiterates the importance of the location where work is physically performed in determining the applicable social security legislation.

Best practices:

• Document the actual organization (activity abroad, exceptional presence in Switzerland).

• Anticipate payroll and employer obligations in the country of activity, before signing (country-by-country analysis).

• If you are aiming for Swiss taxation, prioritize a scenario where the activity is actually carried out in Switzerland, then regulate cross-border teleworking where appropriate.

Note: A Swiss guide reminds us that the obligation to contribute can, under certain conditions, extend to individuals working abroad for employers established in Switzerland. This reinforces the importance of a formal decision, rather than an assumption.

Secondment: useful when mobility is temporary

For a posting from Switzerland to an EU member state, the Federal Social Insurance Office (FSIO) indicates that the application is made via the ALPS application of the compensation fund; if the conditions are met, an A1 certificate is issued. The FSIO FAQ reminds us that the maximum duration is generally 24 months (with the possibility of extension depending on the circumstances).

Guidelines and checklist

Three verbs: pilot, document, follow.

Pilot (before the offer)

• Map the case (residence, workplaces, % teleworking, duration).

• Check if the teleworking framework agreement can be applied and if a request is relevant.

• Decide on the file owner (HR/finance) and the external contact person.

Document (at the entrance)

• Internal note “competent country” (assumptions + decision).

• A1 if required, kept and tracked.

• Check Swiss base when applicable:

• compensation fund affiliation

• LAA in place from the moment of entry

• LPP: threshold + affiliation

Follow (over time)

• Monthly monitoring of the proportion of cross-border teleworking.

• Quarterly review of changes (second employer, self-employment, new countries).

• Annual review of affiliations/policies and documentation.

Common mistakes and how to avoid them

1. Cross-border teleworking “without threshold”: set a rule, follow it, and secure A1 when necessary.

2. Confusing secondment with long-term organization: mark the end of the mission and extensions (24 months in principle).

3. Forget the 8-hour rule (AANP): control low engagement rates.

4. Start without LAA: enforce an entry control (“no cover, no start”).

5. Late LPP affiliation: check threshold and affiliation, and document.

6. Incomplete cross-border onboarding (LAMal/right of option): inform about the 3-month period for a possible exemption.

Questions to ask your insurer/broker

1. Which cases in our workforce are likely to change the competent country (teleworking, multi-site)?

2. What list of documents do you require to prove liability (A1, agreements, time tracking)?

3. How do you handle an accident insurance claim for an employee on the move (travel, part-time work abroad)?

4. How to secure the 8-hour rule for low rates and avoid an AANP gap?

5. In LPP (Occupational Pension Plan), how should entries/exits during the year and multi-employer cases be handled?

6. Who manages the A1 request (internal/external), on what schedule, and how do you track the deadline?

7. When working remotely across borders, what minimum conditions do you expect (policy, monitoring, A1)?

8. What signals trigger a reassessment (secondary activity, second employer, change of residence)?

9. Do you offer an annual compliance review (policies, affiliations, evidence) aligned with HR realities?

10. In the event of an audit or due diligence, what documents can you produce quickly (policies, certificates, governance)?

Conclusion

International recruitment is not just about a contract. Robustness comes from a simple sequence: qualify the scenario and the competent country, put in place the Swiss base when Switzerland is competent, then follow the tipping points (teleworking, secondment, multiple activities).

The next pragmatic step: list your international scenarios, compile a sample "evidence" file, and schedule a quarterly review. A targeted social security audit can then address your grey areas before they become costs.