Here's what you need to know about payrolling costs versus self-employment:
Payrolling Fees
Most payrolling companies charge between 1-5% of your gross invoiced amount:
- PayrollPlus: 1-3% (lowest in market)
- sallis, SPS, Helvetic Payroll: ~5%
- Others: Contact for specific rates
What's Included
For this fee, you receive:
✅ Employment contract and employee status
✅ Complete social security coverage (AHV/AVS, IV/AI, EO/APG)
✅ Unemployment insurance (ALV)
✅ Accident insurance (UVG)
✅ Pension fund contributions (BVG/LPP)
✅ Tax withholding and compliance
✅ Invoicing and payment collection
✅ Work permit assistance
✅ Administrative management
Self-Employment Costs (For Comparison)
If you were self-employed, you'd pay:
- Social security contributions: 10% of income (AHV/IV/EO)
- Accounting/fiduciary services: CHF 1,000-3,000+ annually
- Pension fund: Variable contributions
- Insurance: Self-arranged and paid
- VAT registration: Required if turnover exceeds CHF 100,000
- Commercial register: If turnover exceeds CHF 100,000
Plus significant time spent on administration, taxes, and compliance.
The Bottom Line :💰For most freelancers, especially those starting out or with L permits, payrolling is more cost-effective and hassle-free than self-employment when considering the total cost of time, compliance risk, and benefits.