Recent developments in Switzerland
Employment law is always changing, and keeping up with it is a lot of work. Thankfully, our team is always working to stay abreast of the latest changes, so you don’t have to. Here are some of the newest developments in Switzerland.
Adjustments to Women’s Retirement Age (2026)
The reform of the Swiss retirement system continues to take effect in 2026 following the changes initiated on 1 January 2025. Under the reform, the reference retirement age for women increases by three months each year as part of a gradual transition toward harmonizing the retirement age between men and women. Women born in 1961 reached the reference age of 64 years and 3 months in 2025, and those born in 1962 will see their reference retirement age increase further in 2026. This phased adjustment is intended to help preserve the financial sustainability of the Swiss pension system while ensuring equal treatment across genders.
Increase in Family Allowances (2026)
Family allowances were increased on 1 January 2025 for the first time since 2009, and these revised amounts remain applicable in 2026. The standard child allowance rose from CHF 200 to CHF 215 per month, and the education allowance increased from CHF 250 to CHF 268 per month. Cantons may provide higher allowances or additional supplements depending on regional legislation. Employers must continue applying the updated rates throughout 2026 in accordance with cantonal social insurance obligations.
Taxation of Teleworking in International Contexts (2026)
The Federal Act on the Taxation of Teleworking in International Relations entered into force on 1 January 2025 and continues to apply in 2026. This legislation enables Swiss tax authorities to tax income earned by foreign-based employees who telework for Swiss employers from their country of residence, particularly within Switzerland’s five neighboring countries. Employers must certify the number of teleworking days performed abroad and ensure correct tax attribution under cross-border tax arrangements. This reform provides greater clarity in the allocation of taxing rights and supports compliance for employers engaging remote workers in international settings.
Revision of the Code of Civil Procedure (2026)
Significant amendments to the Swiss Code of Civil Procedure took effect on 1 January 2025 and remain relevant in 2026. The law now clarifies representation rules in conciliation proceedings, allowing legal entities to be represented either by an executive body or by an individual with commercial power of attorney who is familiar with the dispute. The reform also expands the competence of conciliation authorities, enabling them to issue decision proposals in disputes valued up to CHF 10,000. These changes streamline procedural steps and improve access to efficient dispute resolution mechanisms, including in employment-related cases.
Work Permit Quotas (2026)
The Swiss government has maintained its long-standing approach to migration management and continues applying the work permit quotas established for 2025 while preparing the allocation for 2026. For non-EU/EFTA nationals, the quota continues to include 4,500 long-term B permits and 4,000 short-term L permits. Additionally, quotas for service providers from EU/EFTA countries remain at 3,000 L permits and 500 B permits. UK nationals continue to fall under a separate quota framework with 2,100 B permits and 1,400 L permits allocated. Since 1 January 2025, Croatian nationals benefit from full freedom of movement and are no longer subject to quota restrictions. These quota structures continue guiding employer workforce planning and staffing decisions in 2026.
