In times of globalization and digitalization, the labor market and their working models have also changed significantly. There are more and more foreign companies without a branch or place of business in Switzerland that hire employees here, so-called ANobAGs (employees without a contributory employer). In this article, you will learn everything you need to know about the rights and obligations as well as the registration process of an ANobAG.
What exactly does ANobAG mean?
Employees without an employer liable to pay contributions (ANobAG) are employees of a foreign company who have neither a place of business nor a permanent establishment in Switzerland. Due to the absence of the employer, additional obligations arise for employees resident here.
Where do I have to register as an ANobAG?
Anyone wishing to work in Switzerland as an ANobAG must register for this with the compensation office of the canton of residence. The registration process is time-consuming and complicated, and in addition to a lot of information, various documents must also be submitted, depending on the individual case. We will be happy to take over this process for you and ensure that it is handled promptly and efficiently. We also take care of the correspondence with the authorities, so that you can focus on your new phase of life in Switzerland.
What are the obligations of ANobAG?
In addition to registering with the cantonal compensation office, employees must, depending on their nationality as well as the location of the employer, at least also take out accident insurance, and in some cases also a pension fund. Since the employer is not domiciled in Switzerland, the employee must also take care of the correspondence with the authorities and social insurances and fulfill reporting obligations. In addition, all contributions, both employee and employer, are billed in full to the ANobAG.
Which insurances are mandatory for ANobAG?
Like other employees, all ANobAG are obliged to pay salary contributions to the SVA. In addition to contributions to AHV/IV/EO, this also includes ALV contributions. And the employer's contributions also include shares for the FAK and administrative costs.
Furthermore, all ANobAG employees must also take out statutory accident insurance (UVG). This protects employees and employers from the financial consequences of occupational and non-occupational accidents.
If the employer is based in the EU/EFTA area or the employee is an EU/EFTA citizen, the so-called "non-genuine" ANobAG is also subject to the obligation to take out a 2nd pillar, also known as a pension fund or BVG. Since not all pension funds offer ANobAG solutions, it is highly recommended to seek advice from an expert and compare the offers.
If either the employer is not domiciled in the EU or EFTA or the employee is not a citizen of Switzerland, the EU or EFTA, it is a "real" ANobAG. This means that the employee is exempt from the BVG obligation. However, genuine ANobAGs can also voluntarily decide to take out a pension fund, but the offer is very small. In most cases, they must then take out a contract with the foundation Reception facility. Alternatively, the retirement provision can be built up via the 3rd pillar.
In addition, there are other insurances that provide optimal protection. The daily sickness benefit insurance, for example, provides continued salary payment for up to 2 years in the event of illness. We will be happy to advise you in detail on the options and work with you to find the right insurance solutions for your needs.
How are ANobAG taxed?
In any case, ANobAG must fill out an ordinary tax return. Therefore, they are not taxed at source, even if he or she would be liable to pay tax at source due to the residence status. However, since there is no debtor of this taxable benefit (the employer would be responsible for the withholding tax payment), they are taxed normally.
Can ANobAG claim family allowances?
Since ANobAG are subject to the Swiss social security system, they can also apply for family allowances if they are eligible. For children up to 16 years of age or until the start of their education, CHF 200 per month is paid, for young people in education (up to a maximum of 25 years of age) CHF 250 per month. The application is made through the cantonal compensation office.
What is the agreement according to Article 21?
The agreement pursuant to Article 21, Paragraph 2 of Regulation (EC) No. 987/09 must be signed by all non-autonomous employees and their employers. In it, they agree that the employee is subject to Swiss social security. Furthermore, it is agreed that the obligations to pay and report are carried out by the employee. However, the employer also confirms in this agreement that the Swiss employer contributions will be transferred in addition to the salary.
Since the end of 2021, this also includes the agreement according to Art. 18 para.2 of the bilateral agreement between Switzerland and the United Kingdom. Even if you are not part of the EU, the same provisions apply as for the non-genuine "EU ANobAG".
Are you an ANobAG yourself and need competent and personal support? Or are you an employer and would like to support your employees in moving to Switzerland? We will be happy to explain everything you need to know about the procedure and the costs and take care of the process for you.