Working in Switzerland – heaven or hell for cross-border workers?
Switzerland is an attractive place to work for many reasons. For a European, working in Switzerland and living in France would be an ideal scenario, but it can be an administrative headache. Wage portage (portage salarial) agencies such as MITC provide advice and appropriate solutions for cross-border workers.
Remember that Switzerland is not a member of the European Union. Under the Agreement on the Free Movement of Persons (AFMP) between Switzerland and the EU, Switzerland has had to take account of EU social security regulations. These are cumbersome and complex rules that take time to modernise!
Meanwhile, for cross-border workers who have found a job in Switzerland and live in Haute-Savoie or Ain, for example, the concepts of country of employment and country of residence take on a very special meaning.
Being a cross-border worker: many questions to answer
To be fully satisfied with a Swiss payslip, you need to be well informed about very sensitive issues such as income tax, pension contributions and social security cover in the event of illness or accident (how and where will I be treated?). Social security cover should be considered not only for oneself, but also for one’s dependants.
Paying contributions for benefits is important and reassuring, but you still need to be able to receive the benefits they provide. Social security benefits may be exportable, but social assistance benefits are not.
20 years’ experience to better help cross-border workers
Maurice Hoffstetter, originally from France and founder of MITC, moved to Switzerland 20 years ago and set up MITC there. He had to learn the Swiss social system as both an employer and an employee. Numerous contacts with insurers have enabled him to gain in-depth knowledge of social insurance issues, and to keep abreast of changes in legislation. MITC has managed more than 800 employees on a wage portage basis over 20 years, including a large proportion of French cross-border workers. Years of experience have enabled MITC to go beyond generalities to understand the specificities that need to be identified at the time of recruitment. Solutions are different for consultants and temps.
During the initial contact, an MITC employee explains the Swiss social system in just a few minutes, highlighting the differences with the bordering country. This will enable the person concerned to ask the right questions at the right time to avoid difficult situations. It will also help them make the right choices for their personal situation.
At MITC, we focus on issues such as taxation of income earned in Switzerland, social insurance and preparing for retirement. Are you planning to work in Switzerland for a long time, or is this a temporary move?
The Swiss funded pension scheme makes employees aware of this sometimes still distant subject at a very early stage. MITC offers a choice of retirement plans that have an immediate impact on income and taxation.
Wage portage, the solution for cross-border self-employed workers
MITC only offers wage portage, which means that the employee has agreed to the terms of his or her assignment with the client. The worker becomes an MITC employee. The invoice that the customer pays to MITC is broken down into the employee’s gross salary, MITC’s charges as employer and MITC’s management costs.
From the start, it is essential that the relationship between MITC and the employee under wage portage is based on trust. For MITC, anticipating the questions of a first-time employee is the first sign of building confidence.
A wage portage company gives the employee flexibility and allows him or her to define the salary in complete transparency. Before signing the contract, the employee is asked 3 questions in order to define the solution that best meets his or her expectations:
- How much take-home pay do you need now?
- How important is taxation to you?
- Are you already thinking about preparing for your retirement?
MITC is not involved in the answers, of course, but the employee is well informed. It’s important to ask the right questions.
Interested in wage portage? Let’s discuss your situation!
