From April 1st 2020 onwards, the employer will only be obligated to pay housing and meal allowances for the first 12 months of an international employee’s assignment.
What has changed?
On February 19th 2020, the Swiss Federal Counsel agreed to a number of changes to the Foreign Nationals and Integration Act (FNIA). The most significant of which was the change to the requirement for foreign nationals on assignment in Switzerland to be paid housing and meal allowances for the duration of their assignment. From April 1st 2020 onwards, this legal obligation will be limited to the first 12 months of the assignment.
It is unknown at present how this will impact ongoing assignments and further clarification from the Federal Authority is pending.
What to expect / impact?
This will lead to a huge cost saving for the employer of the foreign national on assignment, but of course may in turn lead to a loss of benefits for the employee.
For more information regarding the changes to the payment obligations for employers of foreign nationals on assignment in Switzerland, please contact the Sterling Lexicon immigration team.