 | | 
19.08.2021, 23:12
| Newbie | | Join Date: Aug 2021 Location: Amsterdam
Posts: 6
Groaned at 0 Times in 0 Posts
Thanked 1 Time in 1 Post
| | Contracting by the hour (but with social benefits)
I am discussing a "freelancing role" within the area of financial risk management. I have 5 years of work experience and I come from a EU country. I would need to move to Zurich for the job.
The first offer by the company is an hourly rate of CHF 80/hr or CHF 672/day and they expect the job to take a year. I was quite underwhelmed as this hourly rate is even lower than my rate of EUR 90/hr in my home country. Then, the company informed me that on top of this CHF 80/hr, the company will pay social benefits like pension contribution (5%), accident insurance, and paid sick leave. I'm not aware if there is an additional holiday entitlement of 10.64% on top of that hourly rate. Anyways, I told the company that the initial offer is too low, and they are preparing a higher offer.
This style doesn't sound like freelancing/contracting/self employed as in other countries. I wouldn't even be doing this job through an own legal entity.
I am wondering whether
- this type of "freelancing/contracting" is typically Swiss or that it is not freelancing/contracting at all.
- Could I negotiate for much more? Even if there are social benefits, I think the rate is not worth moving to Zurich.
What the company has described actually looks a lot as what is described in the below link https://ethz.ch/content/dam/ethz/ass...wage_basis.pdf | 
19.08.2021, 23:16
|  | Forum Legend | | Join Date: Mar 2008 Location: Wallis
Posts: 6,709
Groaned at 118 Times in 82 Posts
Thanked 7,549 Times in 3,436 Posts
| | Re: Contracting by the hour (but with social benefits)
I think to get permission to be self employed in Switzerland you need more than one client - so you might have to be treated as an employee.
| 
20.08.2021, 07:03
| Forum Legend | | Join Date: Jun 2008 Location: Switzerland
Posts: 8,805
Groaned at 324 Times in 248 Posts
Thanked 20,238 Times in 7,058 Posts
| | Re: Contracting by the hour (but with social benefits)
There are three situations:
1. you have your own company and deal directly with the client: charge hourly/daily rate + VAT. You are then on the payroll of your own company
2. you work with an agency (that also eats a part of the rate): either you are on the agency's payroll or your company charges the rate + VAT to the agency, and you are on your own company's payroll
3. you're an hourly employee on the client's payroll - but this is not contracting or freelancing
Situation 1 is most preferred but requires commercial and sales skills.
| This user would like to thank k_and_e for this useful post: | | 
20.08.2021, 09:10
| Newbie | | Join Date: Aug 2021 Location: Amsterdam
Posts: 6
Groaned at 0 Times in 0 Posts
Thanked 1 Time in 1 Post
| | Re: Contracting by the hour (but with social benefits)
Ok, thanks both of you! Laws for self-employed are then quite different in Switzerland. Any ideas on whether I should be able to negotiate a much higher hourly rate?
| 
20.08.2021, 09:49
|  | Modulo 2 | | Join Date: Oct 2008 Location: Baselland
Posts: 15,259
Groaned at 312 Times in 268 Posts
Thanked 23,687 Times in 9,633 Posts
| | Re: Contracting by the hour (but with social benefits) | Quote: | |  | | | Ok, thanks both of you! Laws for self-employed are then quite different in Switzerland. Any ideas on whether I should be able to negotiate a much higher hourly rate? | | | | | You almost certainly will not be self-employed. You either work for the agency or the company. It's unusual via agency for them to pay social deductions on top. Usually it comes out of the 80 francs per hour, lowering your take home even more.
It's also unusual for a job to be offered at a net rate. It should be the gross rate. Mandatory deductions come off that - although the employer will also be making payments.
Are you working via an agency or directly for the company.
| The following 2 users would like to thank NotAllThere for this useful post: | | 
20.08.2021, 10:33
| Newbie | | Join Date: Aug 2021 Location: Amsterdam
Posts: 6
Groaned at 0 Times in 0 Posts
Thanked 1 Time in 1 Post
| | Re: Contracting by the hour (but with social benefits) | Quote: | |  | | | You almost certainly will not be self-employed. You either work for the agency or the company. It's unusual via agency for them to pay social deductions on top. Usually it comes out of the 80 francs per hour, lowering your take home even more.
It's also unusual for a job to be offered at a net rate. It should be the gross rate. Mandatory deductions come off that - although the employer will also be making payments.
Are you working via an agency or directly for the company. | | | | | I will be directly working for the company, but will be paid by the hour. Indeed, it is certainly not classified as self-employment, even though the company initially told me it is freelancing/contracting. Since the content of the job sounds interesting, I am still keen to negotiate for more.
Thanks for the info about what is usual.
The company will soon (maybe next week) come back with a higher offer, also detailing on paper what they pay on top in terms of social benefits. I will then find out whether 5% pension benefit and 10.64% holiday entitlement are to be added on top of the CHF 80/hr or they are already included. In both cases the CHF 80/hr sound very low for a specialised job in Zurich.
| 
20.08.2021, 10:35
|  | Forum Legend | | Join Date: Dec 2007 Location: Work in ZH, live in SZ
Posts: 12,453
Groaned at 366 Times in 296 Posts
Thanked 23,902 Times in 8,648 Posts
| | Re: Contracting by the hour (but with social benefits)
Forget about the discussion on the system:
1. It's an absolute lowball offer
2. I smell a rat. Is it a "zero hour" contract or do you have a fixed amount of work per month?
This is not the way business is done in Switzerland at all and it sounds like somebody is trying to screw you over. Professional services in Zurich are typically a lot more expensive than the rate offered. Thats a permanent salary - not a bad one, but it is more than unusual to make this some sort of half baked contracting unless there is a good reason to do so.
| 
20.08.2021, 10:54
| Newbie | | Join Date: Aug 2021 Location: Amsterdam
Posts: 6
Groaned at 0 Times in 0 Posts
Thanked 1 Time in 1 Post
| | Re: Contracting by the hour (but with social benefits) | Quote: | |  | | | Forget about the discussion on the system:
1. It's an absolute lowball offer
2. I smell a rat. Is it a "zero hour" contract or do you have a fixed amount of work per month?
This is not the way business is done in Switzerland at all and it sounds like somebody is trying to screw you over. Professional services in Zurich are typically a lot more expensive than the rate offered. Thats a permanent salary - not a bad one, but it is more than unusual to make this some sort of half baked contracting unless there is a good reason to do so. | | | | | Hey thanks for the opinion! I have been reading your advices/replies to year old posts on this forum  .
The company is actually one of the international Big Four companies in Consulting/Auditing and the final client (of this consulting firm) is one of the two Swiss banking giants. Indeed it sounds like an absolute lowball offer. However, I don't think they want to screw me over in terms of job security. They have told their expectations that the project will take over a year and that I would be working full time. Although initially advertising it is a freelancing/contracting position, during the interview they also told me they were willing to offer me a permanent position. Having experience with much higher payments with freelancing jobs in my home country, I stated myself I want them to offer me a "freelancing contract". Also, I do think it would be awesome to be in Switzerland for a year, but I do not want to commit yet to permanently move there. There is a lowball offer, but no intended false advertising of the "freelancing contract" I guess.
| This user would like to thank HeyThere for this useful post: | | 
20.08.2021, 11:06
|  | Forum Legend | | Join Date: Dec 2007 Location: Work in ZH, live in SZ
Posts: 12,453
Groaned at 366 Times in 296 Posts
Thanked 23,902 Times in 8,648 Posts
| | Re: Contracting by the hour (but with social benefits)
I think we are just having a misunderstanding about the word "permanent" here then ;-) Even if it is a one year contract can you either freelance or be employed as a "normal" employee of the big four. Thats usually called "permanent", even if it is a contract with a limited time. So you would get a fixed salary, typically some sort of bonus, social insurances, paid vacation and so on...
As a permanent offer does it boil down to some 130k-ish gross salary. Sounds totally ok as a non-management role in a big four. And yes, its a great opportunity to experience Switzerland for a year.
There is no job security in Switzerland, they can fire permanent employees any time as they wish - so never accept less money for perceived security.
| This user would like to thank Treverus for this useful post: | | 
20.08.2021, 11:25
| Newbie | | Join Date: Aug 2021 Location: Amsterdam
Posts: 6
Groaned at 0 Times in 0 Posts
Thanked 1 Time in 1 Post
| | Re: Contracting by the hour (but with social benefits)
Haha, I am aware that the term "permanent" is an accepted misnomer. In most countries, that would be a one-year contract, that could be extended to a permanent position in 2 years.
As for the alternative for the permanent position, from the phone call I understood I would be graded in as 'managerial position'. I interpreted that as "Manager" although "Assistant Manager title" could also be a possible interpretation. Indeed, the initial hourly rate offer doesn't make much sense, when according to Glassdoor the average Big Four Manager and Assistant Manager in Zurich earns CHF 130k-150k and 110K respectively
| 
20.08.2021, 11:35
|  | Forum Legend | | Join Date: Dec 2007 Location: Work in ZH, live in SZ
Posts: 12,453
Groaned at 366 Times in 296 Posts
Thanked 23,902 Times in 8,648 Posts
| | Re: Contracting by the hour (but with social benefits) | Quote: | |  | | | Haha, I am aware that the term "permanent" is an accepted misnomer. In most countries, that would be a one-year contract, that could be extended to a permanent position in 2 years.
As for the alternative for the permanent position, from the phone call I understood I would be graded in as 'managerial position'. I interpreted that as "Manager" although "Assistant Manager title" could also be a possible interpretation. Indeed, the initial hourly rate offer doesn't make much sense, when according to Glassdoor the average Big Four Manager and Assistant Manager in Zurich earns CHF 130k-150k and 110K respectively | | | | | No offense, but I meant manager as in "manages people" not as "manages the office supplies"... literally anyone in a big four has "manager" in the title.
| 
20.08.2021, 12:18
| Newbie | | Join Date: Aug 2021 Location: Amsterdam
Posts: 6
Groaned at 0 Times in 0 Posts
Thanked 1 Time in 1 Post
| | Re: Contracting by the hour (but with social benefits)
No worries, I am aware of the inflated titles used within firms. The most funny thing is when someone says "I work in finance", but they are actually doing some invoicing work  .
| 
20.08.2021, 13:19
|  | Modulo 2 | | Join Date: Oct 2008 Location: Baselland
Posts: 15,259
Groaned at 312 Times in 268 Posts
Thanked 23,687 Times in 9,633 Posts
| | Re: Contracting by the hour (but with social benefits)
Fix term permanent contract, I guess.
I calculate on that 80 francs an hour, your take home would be about 58 francs.
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests) | | Thread Tools | | Display Modes | Linear Mode |
Posting Rules
| You may not post new threads You may not post replies You may not post attachments You may not edit your posts HTML code is Off | | | All times are GMT +2. The time now is 02:37. | |