Among the many assets of the Greater Zurich Area, the greatest may well be its high-quality talent pool – and how easily it can be tapped into. Local universities such as the ETH Zurich (among the top 25 universities in the world) and the University of Zurich churn out greatly qualified graduates at a high pace. http://www.greaterzuricharea.ch/

1. Greater Zurich Area AG, May 2013: Human Resources 1
Among the many assets of the Greater Zurich Area, the
greatest may well be its high-quality talent pool – and
how easily it can be tapped into. Local universities such
as the ETH Zurich (among the top 25 universities in the
world) and the University of Zurich churn out greatly
qualified graduates at a high pace.
A unique concentration of international companies sets
the bar high for the Greater Zurich Area’s multilingual
work force. Global industry leaders such as IBM, Google,
ABB, Dow Chemical, Ecolab, Johnson & Johnson and Kraft
Foods have cutting-edge research facilities or headquar-
ters in the Greater Zurich Area. Here, they employ a
veritable international work force elite made in Switzer-
land: Top-notch employment opportunities, prime wages,
low taxes and an extremely high quality of life make the
Greater Zurich Area attractive for emerging talent and
top managers alike.
The most flexible and liberal labor laws of any European
economy, as well as highly efficient trade and labor
agreements with the European Union make the Greater
Zurich Area euro-compatible and euro-competitive at
once.
Diverse, Liberal and Plentiful: Talent Pool, Labor Law,
and Human Resources in the Greater Zurich Area
Workforce with best cost/performance ratio in Europe
Thanks to its strong currency, the Swiss Franc, highly-­
skilled Swiss labor doesn’t come on the cheap in absolute
numbers. However, in the big picture, Switzerland offers
the best cost/performance ratio in Europe.
Decisive factors for the Greater Zurich Area’s great labor
balance sheet are:
• Employees pay all health insurance (incl. dentistry)
out of their own pocket.
• Low auxiliary wages, low social contributions.
• Long working hours.
• High productivity.
• High workers’ motivation, great work ethics.
• Highly flexible work force (“hire and fire” is
common).
At the same time, wages are very appealing to recruit
and maintain the best talent among members of top-­
level management in the Greater Zurich Area.
The Greater Zurich Area’s workforce
is relatively inexpensive while showing a
favorable cost/performance ratio.
The Greater Zurich Area offers some of
the most attractive labor conditions in the
world – for employers and employees alike.

2. Greater Zurich Area AG, May 2013: Human Resources 2
Talent and innovation in the Greater Zurich Area
Based on a great tradition and experience in industries
such as watch making, precision manufacturing and
banking, the Greater Zurich Area has become a beacon
of precision technologies (life sciences, micro/nanotech,
cleantech, ICT), modern finance and international ma-
nagement know-how.
The Swiss Federal Institute of Technology (ETH Zurich)
and the University of Zurich are educating highly skilled
engineers, and these innovative technicians continue to
live up to the world-famous “Swiss Made” label.
The high-quality talent supply by these world-class uni-
versities was a key factor in the decision of Google to
move their European Engineering Center to Zurich in
2004. The IBM Zurich Research Lab had come to a similar
conclusion nearly 50 years ago. Today, it counts two No-
bel Prizes and many other technological breakthroughs
among its achievements. Only in 2010, Disney has
launched a research center in cooperation with the ETH
Zurich adding to the roster of global innovators to set
up R&D operations in the Greater Zurich Area. And for
several years now, the Greater Zurich Area has become
an increasingly attractive destination for companies ex-
panding from China into Europe. Solar companies such
as Suntech, Jinko, and Yingli are part of an actual cluster
buildup.
Last but not least, the Greater Zurich Area has yielded
a thriving and dynamic start-up scene in new technol­
ogies, inspiring Fortune magazine to name the city of
Zurich as top of the 7 Best New Global Cities for start-
ups in its October 2012 issue:
“When Google looked to set up its European engineer­
ing headquarters, it turned to Zurich, and Yahoo fol­
lowed suit. The U.S. tech giants liked Zurich’s robust
broadband infrastructure, but the real appeal is the local
talent: Switzerland is the No. 1 country in the world in
patents as a percentage of GDP. The Swiss government
has multiple programs for investing in small businesses,
and the effort seems to be paying off. Zurich is home to
hundreds of startups, including calendar software maker
Doodle and Wuala, a cloud storage company.”
Cooperation and mutual inspiration be-
tween academic and corporate innovators
in the Greater Zurich Area, as well as the
highest per capita expenditure on research
& development make for a know-how
environment that is particularly conducive
to technological development and scientific
invention.
Bilateral agreement with the EU:
Free movement of personnel
In June 2007 the last quota restricting free personnel
movement between Switzerland and the European Uni-
on (of which Switzerland is still not a member) have
been removed.
Since then, international companies operating in the
Greater Zurich Area can hire the best and brightest
from all over Europe, in addition to the native talent
of the Greater Zurich Area. And due to the superior
quality of life they enjoy here, top international exec­
utives do not hesitate to relocate to the Greater Zurich
Area.
“At first glance, Swiss salaries appear high,
but the productivity and flexibility of the
workforce balance the numbers, and
for many companies, available tax relief
provides a very competitive situation.”
David B. Bancroft, Managing Director Cilag AG
The bilateral agreement on the free
movement of personnel between Switzer-
land and the EU has further added to the
attractiveness of the Greater Zurich Area as
a headquarters location for international
companies.

3. Greater Zurich Area AG, May 2013: Human Resources 3
Switzerland’s liberal labor laws
As a non-member of the European Union, Switzerland
and the Swiss enjoy particularly liberal labor laws. In
general, the legislator refrains from strict regulations
in favor of a pro-business order, thus deliberately lea-
ving room for direct agreements. The beneficiaries are
the employer and the employee alike. Among the great
achievements of Swiss labor legislation are the following:
• Switzerland has not experienced a significant
organized strike in many years.
• Unemployment is significantly lower than anywhere
else (on average 2.9% for 2012 [source: SECO]).
• Union membership is low; unions and employers
cooperate and are open to compromise.
• Minimum legal periods for notices of termination
are shorter than in other European countries
(between one and three months, depending on
duration of employment).
• Wages can be regulated by collective agreements
or negotiated directly between employer and
employee.
• Liberal international labor force: nearly 20% of
Swiss workforce is non-Swiss, second highest in
Europe.
• For middle management or higher, overtime work
is included in base salary.
• Minimum annual paid vacation days are 20 (25 days
for employees below 20 years of age).
Low social security contributions in Switzerland
In the Greater Zurich Area individuals enjoy low-priced
and comprehensive package of social security and other
insurance services.
Social security is based on three pillars and combines
federal, company-sponsored and individual plans for
retirement. Occupational accident insurance is included
in this system.
Further insurance provisions
• Unemployment insurance
(“Arbeitslosenversicherung ALV”; ~2% of salary).
• Mandatory occupational accident insurance
(“Unfallversicherung UVG”) covers accidents on
and related to the job; contribution is split equally
between employer and employee.
• Salary payments during illness or recovery of an
accident; continuation of entire or partial salary
payment by employer; payment duration and
percentage is progressive depending on employee’s
age and years of service. In most cases, the law
requires 2 to 3 months.
• Family allowances (subject to cantonal regulation).
• Salary reimbursement regulation
(“Erwerbersatzordnung EO”; 0.3% of salary),
during military service or maternity leave; split
equally between employer and employee.
Three pillars of Social Security
1st
pillar: AHV (US equivalent: Social Security)
A federal retirement fund for the elderly and bereaved
(“AHV”) and the disability insurance (“Invalidenversi-
cherung IV”); both are mandatory for the working pop-
ulation, employer and employee each contribute 50%
to the pension. Current premiums: AHV: 8.4% and IV:
1.4%.
2nd
pillar: Company-sponsored pension (Berufliche Vor-
sorge: BVG, US equivalent: 401K)
A cumulative pension savings plan, mandatory for
all employees in Switzerland (“Berufliche-Vorsorge-
Gesetz BVG”). Funding for this plan is split equally
between the employer and employee.
3rd
pillar: Tax deductible private retirement plans
Non-mandatory retirement plans (savings or life insur-
ance), partially or completely tax-deductible depending
on the nature of the plan and employment status.
Under Switzerland’s liberal labor law,
employees and employers enjoy an equal
degree of protection and flexibility.

4. Greater Zurich Area AG, May 2013: Human Resources 4
Permit types (work and residency)
• Temporary non-residential working declaration up
to 90 days (permit voucher).
• Short-term work/residence (less than 1 year).
• Residence (up to 10 years).
• Permanent residence (no limit).
Application procedure
• Residence applications are usually filed by
individuals at the cantonal immigration office
before intended start of employment.
• Work permit applications are filed by the employer
at the cantonal immigration office before intended
start of employment.
• Many cantons offer online applications.
• For jobs limited to 90 days (envoys, self-employed,
and contract workers) a permit voucher is available
at the cantonal authority.
Example: Social Contributions on a gross managerial
salary of CHF 240K
Individual health insurance
Basic health insurance is mandatory for everybody living
in Switzerland; health insurance plans are bought by
the employee from private insurance companies; no
involve­ment of the employer.
Work and residence permits
Much of the red tape surrounding work and residence
permits in the Greater Zurich Area has been cut in recent
years. Work permits are no longer necessary for EU and
EFTA citizens. Work permits for Non-EU/EFTA on a ma-
nagerial level are mostly a formality and initiated by the
employer upon availability of a valid working contract.
A residence permit is mandatory for anyone who works
during their stay in Switzerland or whose stay exceeds
three months.
Benefits of the Swiss labor pool at a glance
• One of the most liberal labor laws in Europe, short
period for notice of termination.
• Due to Swiss employers’ low social security
payments, long working hours and high
productivity, hourly labor costs are lower than in
other European countries.
• The typical workweek is 40 to 42 hours.
• Top-notch management skills, Swiss are
international and multilingual (20% of population
are non-Swiss nationals).
• English is business language.
• Talent pool of high-quality graduates from
internationally renowned universities.
• Easy to recruit and retain talent from abroad to
work in the Greater Zurich Area.
• High quality of life in Greater Zurich Area.
• Bilateral agreements and free movement of labor
between Switzerland and the EU give EU nationals
free access to the Swiss labor market.
• US citizens (management level) enjoy
standardized, brief and simple procedures to
obtain work and residence permits.
Deductions Salary basis Rate For
employer
For
employee
Social Security
(AHV)
240,000 5.15% 12,120 12,120
Unemployment
Insurance 1
126,000 1.1% 1,386 1,386
Unemployment
Insurance 2
114,000 1.1% 570 570
Accident
Insurance 1
126,000
(employee)
1.2% – 1,512
Accident
Insurance 2
126,000
(employer)
0.3% 378 –
Accident
Insurance 3
Over 200K
(employer)
1% 740 –
Sickness
Insurance
240,000 1.1% 2,640 –
Pension
Fund (401K)
240,000 7.5% 18,000 18,000
Family allowance
(Ct. of Zurich)
240,000 1.3% 3,120 –
Admin. Fee 240,000 0.3% 727.20 –
Total
Contributions
39,681.20 33,588
Net Salary 206,412

5. Switzerland
Greater Zurich Area AG
Limmatquai 122
8001 Zürich / Switzerland
Phone +41 44 254 59 59
Fax +41 44 254 59 54
info@greaterzuricharea.ch
www.greaterzuricharea.ch
USA
Greater Zurich Area Inc.
swissnex building
730 Montgomery Street
San Francisco, CA 94111 / USA
Phone +1 415 912 5909
CHINA
Jianping Gao
Representative China
Phone +86 21 6149 8208
Have we sparked your interest?
Would you like to get to know your options in the
Greater Zurich Area in more detail?
If yes, please contact your nearest Greater Zurich
Area representative for more information.
We are happy to assist you in every aspect of
expanding your business to the Greater Zurich
Area!
Greater Zurich Area AG, May 2013: Human Resources 5