Options to be an employee living in Switzerland (remote work) for an employer based in Finland?

Hello,

I have the possibility to join a Finland-based company in some months. However, I would continue living in Switzerland, and working remotely. I am a Canadian citizen, with a Swiss residence permit C.

I am having difficulties navigating the laws around the Swiss social system, and the contributions to be paid. I hope you can advice me on the options available for myself and my future employer, and what my next steps should be.

I have found on the Swiss government site the form "Employer-Employee Agreement in accordance with Article 21, para. 2 of Regulation (EC) No. 987/09", whereby "under the place-of-employment principle, that employee is subject to statutory Swiss social-security regulations"

- I understand that I will need to pay the 1st Pillar contributions (AHV/IV/EO + ALV 1 and ALV 2), as well as the 2nd Pillar contributions (BVG). 

- My Finland-based employer would need to pay their half of the above 1st and 2nd Pillar, is that correct?  

- What about accident insurance (UV, both professional and non-professional?), sickness insurance (KTG): are those compulsory for both employee and employer?

- What about family benefits? Are they compulsory for both employee and employer, and if so, which ones/how much?

- Am I forgetting other fees?

-Which ones are compulsory by Swiss law for the employer to contribute to?

- How to find/join a 2nd Pillar institution, if I am to make payments for both myself and on behalf of my EU-based employer?

I also saw in another thread, that a "Professional Employer Organization (PEO)" could be hired to do the payroll processing and admnistration for me/employer. Is that the case?  Do you have PEO recommendations for Zürich?

Thank you very much in advance for any advice and help that you can provide me with!

From the Swiss side, the regulation would be the same as for Swiss or EU citizens. That is, if more than 25% of your work for your EU employer is done remotely from Switzerland, then you fall under Swiss social security.

So unless Finland has some special law requiring Canadians who work for Finnish companies to join the Finnish social security system, you would fall under Swiss social security. In special cases like yours (Canadian living in Switzerland but working remotely for a Finnish company ), the Swiss social security offices review eligibility on a case-by-case basis.

Your Finnish employer is technically responsible to sign you up for Swiss social security and is also responsible to make sure Swiss social security bills get paid. But they can delegate you as their employee to handle the Swiss social security business.

In your specific case (Canadian, working for Finnish company remotely from Switzerland full time) you fall under Swiss social security. The contributions and benefits are the same as for other employees in Switzerland.

Since you have an EU employer, they have to pay employer contributions just like Swiss employers, which is good for you because you only pay half of contributions (unlike anobag where you pay them all yourself).

Your employer has to cover: half of your AHV/IV contribution; half of your pension fund (BVG) contributions; half of your EO contributions; your child benefits contributions (in some cantons you pay part of these); your occupational accident insurance premiums (you pay for non-occupational accident insurance); half of your unemployment insurance premiums.

Paid sick leave insurance (KTG) is not mandatory, and it's unlikely your employer could sign up to a Swiss insurance. Maybe they could get a similar insurance in Finland.

I assume that the child benefit contributions and benefits are based on your place of residence (as with anobag) when you have a foreign employer, unless they use a Swiss PEO.

I don't know if your Finnish employer could subscribe to a Swiss pension fund and accident insurance, so you may only get the default accident insurance (Suva) from the social security office and have to use the LOB substitute pension fund. These things won't be an issue if your employer uses a PEO.

As mentioned by jeanluc, your employer is technically responsible to do all the running around, but they can make you the designated run-around employee. If they're willing to pay for a PEO, that obviously saves you a lot of hassles. I'm not sure how that could affect possible legal claims against your Finnish employer down the line though, with the PEO being your legal employer.