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Old 12.05.2009, 20:08
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Contract vs Permanent - Questions

I'm currently applying for a job in Basel. It's a 2 year contract and I'd like some info on the pros/cons of taking a contract position in Switzerland. For example, in the UK pension wouldn't usually be included for a contractor, but looks like it is here. Would medical insurance be included? What about annual leave? Heaven forbid I should fall pregnant during the contract, but what would happen then? I understand the lack of guarantee of a permanent job, but if someone could help me understand the main differences, that would be great.

Also, any idea what the net salary from CHF 130k gross would look like??

Here's a snippit from the job spec:

[FONT='Arial','sans-serif']....We are currently looking to recruit a XXX Specialist based in Basel with a fixed term contract of two years. After the fixed term contract permanents employment is possible without guarantee however. [/FONT]

[FONT='Arial','sans-serif']Remuneration / contract:
Circa CHF 130,000 base salary
+ 12% STI bonus
+ contributory DC pension (including Life & Disability insurances)
+ relocation assistance as necessary
+ fixed term contract (2 years)
Swiss employment contract
[/FONT]
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Old 12.05.2009, 21:31
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Re: Contract vs Permanent - Questions

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I'm currently applying for a job in Basel. It's a 2 year contract and I'd like some info on the pros/cons of taking a contract position in Switzerland. For example, in the UK pension wouldn't usually be included for a contractor, but looks like it is here. Would medical insurance be included? What about annual leave? Heaven forbid I should fall pregnant during the contract, but what would happen then? I understand the lack of guarantee of a permanent job, but if someone could help me understand the main differences, that would be great.

Also, any idea what the net salary from CHF 130k gross would look like??

Here's a snippit from the job spec:

[FONT='Arial','sans-serif']....We are currently looking to recruit a XXX Specialist based in Basel with a fixed term contract of two years. After the fixed term contract permanents employment is possible without guarantee however. [/font]

[FONT='Arial','sans-serif']Remuneration / contract:
Circa CHF 130,000 base salary
+ 12% STI bonus
+ contributory DC pension (including Life & Disability insurances)
+ relocation assistance as necessary
+ fixed term contract (2 years)
Swiss employment contract
[/font]
Maybe some confusion between contract and contractor. Contractors are freelancers and arrange their own pensions, insurance, etc. But you are being offered regular employment which is time limited to 2 years.
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Old 13.05.2009, 10:23
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Re: Contract vs Permanent - Questions

Ok, so I'm deffo not a freelancer... So what you're saying is that effectively I'd most likely have the same T&Cs as a standard Swiss employment contract, just with a time limit?

Any idea how I can see what the net salary will look like?
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Old 13.05.2009, 10:58
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Re: Contract vs Permanent - Questions

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Ok, so I'm deffo not a freelancer... So what you're saying is that effectively I'd most likely have the same T&Cs as a standard Swiss employment contract, just with a time limit?

Any idea how I can see what the net salary will look like?
exactly.

try this for an indication of net salary:

http://www.accurity.ch/revenueestimate/
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Old 13.05.2009, 16:46
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Re: Contract vs Permanent - Questions

Thank you.
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Old 13.05.2009, 17:08
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Re: Contract vs Permanent - Questions

Most people seem to have some type of contract here, even teachers in public schools that would be permanent in other countries. Here they want performance and results not workers rights above all else.
I think they have matenity rights here now, but Dads have to wait.
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Old 13.05.2009, 21:30
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Re: Contract vs Permanent - Questions

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Most people seem to have some type of contract here, even teachers in public schools that would be permanent in other countries. Here they want performance and results not workers rights above all else.
I think they have matenity rights here now, but Dads have to wait.
mostly it makes it easier to get rid of you if they want to. worse case they just have to honour the length of the contract. for a permie, it is a little more involved.

yes you are usually on a 'fixed term contract' to start with before you become 'permanent' but in the Fed universities at least (EPFL,ETH) if you start your 6th year of one or other consecutive contracts then they have to offer you permanent position. i suspect this may be true in several other domains.

for maternity/paternity i don't think they can discriminate between fixed term contractors (not freelancers) and permies. If you refer to it just eing shite in general, then yes, its not very good at all. the father gets a couple of days i think.
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Old 14.05.2009, 18:22
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Re: Contract vs Permanent - Questions

Last question (well, on this thread anyway)... What does STI on the bonus bit mean?? Is that a Swiss thing?
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Old 14.05.2009, 21:06
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Re: Contract vs Permanent - Questions

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Last question (well, on this thread anyway)... What does STI on the bonus bit mean?? Is that a Swiss thing?
Short Term Incentive (structured or unstructured bonus payment)

??????
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Old 15.05.2009, 15:25
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Re: Contract vs Permanent - Questions

Hi There,

Im a recruitment agent who is currently on maternity leave and I dealt mainly with contracting IT positions.

So, basically what happens is you are quoted and agree to a "daily" or "hourly" rate. may I ask what agency put you forward??

If its a daily rate, for example 1000 CHF per day, what you will have to deduct from that is 2 pension funds, sick pay allowance, accident insurance (outside work) (i think thats about it). This all totals to approx 10% of the 1000 per day. You will then get your taxes deducted of this as well.
You wont be employed by the actual company in Basel, but a recruitment company will do your payrol for you. You would usually have 1 months notice period, no holidays are paid for, and no maternity leave. Thats why you will find that you are getting paid alot more than in a permanent position.

If I were you, ask the recruitment company for a salary example, so that you will know roughly how much you will be clearing by the end of the month. They should be able to supply you with one.

If you prefer a permanent position, then once your in the company, as a contractor, you can always talk with your team leader and ask to be made internal.

I hope this helps!
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Old 15.05.2009, 16:12
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Re: Contract vs Permanent - Questions

Thanks, but.... I've been told it is a Swiss contract, with an annual gross salary... I'll be employed by the company, not the agency (who is UK based).
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Old 16.05.2009, 13:24
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Re: Contract vs Permanent - Questions

Ok, thats really strange.
I have never come across that in my career, but I suppose once you get the contract you can read it all and be up front with your questions and ask them to add things in it what you want. If its a contract by the company then things like maternity leave have to be included. (not that its that much, you only get paid 3 months worth and be expected to go back after that)
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Old 16.05.2009, 13:52
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Re: Contract vs Permanent - Questions

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...
You wont be employed by the actual company in Basel, but a recruitment company will do your payrol for you. You would usually have 1 months notice period, no holidays are paid for, and no maternity leave. Thats why you will find that you are getting paid alot more than in a permanent position. ...
What do you mean "no maternity leave". It is a legal entitlement in Switzerland. Even the self-employed are entitled after some months of social-security contributions.
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Old 16.05.2009, 14:36
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Re: Contract vs Permanent - Questions

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I'm currently applying for a job in Basel. It's a 2 year contract and I'd like some info on the pros/cons of taking a contract position in Switzerland. For example, in the UK pension wouldn't usually be included for a contractor, but looks like it is here. Would medical insurance be included? What about annual leave? Heaven forbid I should fall pregnant during the contract, but what would happen then? I understand the lack of guarantee of a permanent job, but if someone could help me understand the main differences, that would be great.

Also, any idea what the net salary from CHF 130k gross would look like??

Here's a snippit from the job spec:

[FONT='Arial','sans-serif']....We are currently looking to recruit a XXX Specialist based in Basel with a fixed term contract of two years. After the fixed term contract permanents employment is possible without guarantee however. [/font]

[FONT='Arial','sans-serif']Remuneration / contract:
Circa CHF 130,000 base salary
+ 12% STI bonus
+ contributory DC pension (including Life & Disability insurances)
+ relocation assistance as necessary
+ fixed term contract (2 years)
Swiss employment contract
[/font]
You have to take care of the health insurance yourself. The
cost of insurance is 200-350 per month depending on your deductible,
requirements, and where you live.
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Old 22.06.2011, 14:58
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Re: Contract vs Permanent - Questions

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What do you mean "no maternity leave". It is a legal entitlement in Switzerland. Even the self-employed are entitled after some months of social-security contributions.
I know, that's a bit old thread, but anyway...

Does anyone know the exact rule about maternity payments? I have hourly salary and I do pay all social contributions and taxes.
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Old 22.06.2011, 15:03
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Re: Contract vs Permanent - Questions

You are still entitled to maternity pay if you are contracting. I was when I had my first baby, however the company I ws contracting through were not forth coming with this information & I had to tell them to pay me what I was legally entitled to.

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I know, that's a bit old thread, but anyway...

Does anyone know the exact rule about maternity payments? I have hourly salary and I do pay all social contributions and taxes.
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Old 22.06.2011, 15:10
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Re: Contract vs Permanent - Questions

Thanks for the answer!

And what is the payment then - average over some period? 80/100% during 14 weeks?
Do you have any legal link? I guess you had to show something to the company to make them pay you...
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Old 22.06.2011, 15:11
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Re: Contract vs Permanent - Questions

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You are still entitled to maternity pay if you are contracting. I was when I had my first baby, however the company I ws contracting through were not forth coming with this information & I had to tell them to pay me what I was legally entitled to.
From what i understand this is not a contractor role as gingi gave the useful info.

With 130k, you need to check if it is 12 or 13 installments.

The net value depends on where you live. In Zurich, in average it will be like 7500 chf net/month.

Then you need to pay the health insurance. Even if Basel has higher taxes you should keep 7000/month (12 instalments).

I am a little lower than 130 but the company supports the health insurance and non work accident.

So you have to check the benefits also.
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Old 22.06.2011, 15:24
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Re: Contract vs Permanent - Questions

I don't get it...

At the moment, my contract says that I can't work more than 50% over the year (it may change in future however) and I have hourly rate which encloses my holidays (which are not paid therefore). What kind of maternity payments am I entitled to then?

I'll ask my boss one day, but since it is a one men company and I'm nearly the only employee there, he may simply do not know this
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Old 22.06.2011, 15:37
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Re: Contract vs Permanent - Questions

IIRC legally it is 80% of your salary for the 14 weeks up to a certain limit. There is a link already somewhere on the forum unser maternity pay but when the company I worked through realised I was aware of the law they made no more obstacles.

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Thanks for the answer!

And what is the payment then - average over some period? 80/100% during 14 weeks?
Do you have any legal link? I guess you had to show something to the company to make them pay you...
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