Employed and self-employed in Switzerland: rules and real income

Yes, you can be employed and self-employed at the same time in Switzerland. Keeping your job while starting a side business lets you find your first customers without immediately relying on it for your entire household budget. Your business must remain compatible with your employment contract, and you must complete the formalities required for the new activity.

Questions quickly arise: do you need to tell your employer? Do you pay AHV contributions again? When must you register with the commercial register or for VAT? And how much do you actually keep from your first invoices? This guide explains how to combine employment and self-employment, with practical benchmarks for deciding whether to keep your job, reduce your hours or go full-time.

Must you tell your employer before starting?

Start with your employment contract, then staff regulations and any collective agreement. A clause may require you to disclose a secondary activity or obtain prior approval. However, private-sector employees are not subject to a general rule requiring every outside activity to be authorised regardless of the contract and circumstances.

Even without a specific clause, you owe your employer a duty of loyalty. Article 321a of the Code of Obligations protects the employer’s legitimate interests. SECO (in French) explains that competing activities or a workload that prevents you from doing your employed job properly can breach this duty. Working in the evening or on your own computer does not settle the issue by itself.

How should you explain your business idea?

If notification is required, or your plans overlap with your employer’s customers, market or working hours, describe them precisely. Saying “I want to become self-employed” leaves many questions unanswered. Explain what services you will offer, to whom, when and using which resources.

For example, you might plan a few photography assignments on Saturdays using your own equipment and without accessing company contacts. Explain whether you will need to answer customers during the working week. Written agreement on the scope clarifies what has been accepted. Revisit the discussion if your plans change materially.

Keep the two activities practically separate

Use separate email addresses, files and tools. Your employer’s customer lists, confidential documents and software licences are not resources for your business. If you develop software or an invention closely related to your employed role, clarify intellectual property rights before commercialising it.

Public-sector employment, regulated professions and activities requiring a licence may involve additional rules. Where relevant, also check that your residence or work permit allows the proposed activity.

Can a non-compete clause apply after you leave?

The duty of loyalty applies while you are employed. A non-compete clause restricts certain activities after the contract ends. Leaving the company does not therefore always give you unrestricted freedom to approach its customers.

Under Articles 340 and 340a of the Code of Obligations, the clause must, among other things, be in writing. Its validity depends on your access to customers or manufacturing or business secrets, and whether using that knowledge could cause substantial harm to the employer. It must also be appropriately limited in duration, territory and activities. A term exceeding three years requires special circumstances.

If your plans are close to your current occupation, have the clause reviewed before committing expenditure or signing with clients. Written clarification or a waiver can provide a more secure basis for your business.

Which status should you choose for a side business?

“Entrepreneur” describes your project, but does not determine your social insurance status. The basic distinction is that a sole proprietor carries on the activity personally, whereas an LLC or corporation carries it on through a separate company.

Sole proprietorship: trading in your own name

A sole proprietorship requires no minimum capital. In return, you are personally liable for its obligations. The compensation office assesses whether you genuinely work on your own account: independence, economic risk and client relationships matter more than the label on a contract.

Having an employed job does not prevent recognition as self-employed for another activity. However, invoicing hours to a single client who controls your organisation and integrates you into their team may amount to employment. No magic number of clients guarantees self-employed status: the overall circumstances are assessed. Suva explains the distinction (in French) for activities within its remit.

Keep quotations, contracts, invoices and evidence of marketing activity from your first assignments. They can support your application for AHV recognition as self-employed.

LLC or corporation: working for your own company

You can own a company while remaining employed elsewhere. If you work for your own Swiss LLC (Sàrl/GmbH) or corporation (SA/AG), you are generally treated as an employee for that activity. The company must handle your remuneration and its employer obligations accordingly.

A company can make sense when bringing in a partner or developing a larger business, but it entails costs and formalities. Our sole proprietorship versus LLC comparison helps you choose a suitable structure.

AHV and income tax: what do you pay on top of your salary?

Contributions on self-employed income

AHV deductions from your salary do not automatically settle the contributions on your self-employed activity. Two rules are particularly useful in 2026:

• Annual income from secondary self-employment up to CHF 2,500: AHV/IV/EO contributions are collected only if you request it. The threshold concerns income from the activity, not the total invoiced.
• Self-employed income below CHF 10,100: if the minimum contribution has already been collected through your salary in the same year, you can request the 5.371% rate instead of paying a second minimum contribution. Administrative fees and other contributions may be added.

Above CHF 2,500, contributions are not calculated only on the excess. Provide your income estimate and salary evidence to the compensation office, then update the estimate as the business develops. The conditions are set out in AHV information leaflet 2.02, 2026 edition.

Your profit is added to your other income

As a sole proprietor, you report the result of your business in your personal tax return. Working only on Saturdays or earning a small amount does not create a general tax exemption. Self-employed income falls under Article 18 of the Federal Act on Direct Federal Taxation (in French); commercially or professionally justified expenses are deductible under Article 27.

A business expense can reduce your profit, but paying a private expense from a business account does not make it deductible. Retain evidence and allocate mixed use correctly, for example for a phone.

Estimate additional tax by comparing your position with and without the side-business profit, taking your canton and household into account. The average tax rate on your salary may not accurately predict tax on additional income. Our accounting service for the self-employed can help organise this.

What should you arrange from your first assignments?

You do not need to leave your job before organising the business. Clarify your status with the compensation office, check professional authorisations and track sales, expenses and payments. A dedicated account makes this easier, even where a separate business account is not mandatory.

The two CHF 100,000 thresholds do not make these procedures interchangeable. For VAT, assess the type of supplies and forecast revenue at startup too. Voluntary registration may be possible below the threshold. See our Swiss VAT guide and Swiss commercial register directory for the relevant steps.

Our guide to becoming self-employed in Switzerland covers the full process. Address these matters at launch, rather than discovering them when preparing your first tax return.

What does your employed job still cover?

Keeping a job maintains part of your social protection, but does not necessarily cover every business risk. Non-occupational accident insurance generally requires at least eight hours of work per week for the same employer. A substantial reduction in hours can therefore change your cover. Ask the insurer to confirm how your self-employed activity and its income are protected.

Also ask a practical question: if you cannot work for two months, which benefits replace your salary and which replace your business income? Health insurance, daily allowances and liability towards clients address different needs. Our business insurance guide (in French) explains the differences.

Self-employed income is not insured against unemployment. If you lose the job you kept, your availability to accept employment and the role of your side business must be assessed. A controlling position in an LLC can also restrict certain entitlements: read our article on unemployment benefits for managing partners before relying on benefits.

Do you live or work in more than one country? Have the applicable social insurance system determined before registering. The Federal Compensation Office (in French) explains the rules and relevant contacts.

How much does your side business really earn?

Your customer-facing rate is not your hourly income. It must also fund unsuccessful quotations, preparation, travel, invoicing and quiet periods. Test a clearly defined service and record all the time it takes over several months.

Example: you invoice CHF 2,400 — how much is left?

You complete four five-hour assignments at CHF 120 an hour, invoicing CHF 2,400 during the month. Related business expenses are CHF 400, and you spend another ten hours finding clients, preparing quotations and administering the work.

CHF 66.70 is not yet net income: you still need to cover personal contributions, taxes and periods without assignments. But it already helps compare services or reveal that an apparently high rate leaves little margin once preparation is included.

An invoice is not cash in your account

Suppose a CHF 600 invoice remains unpaid. You have collected only CHF 1,800. After paying CHF 400 of expenses, CHF 1,400 remains from the month’s cash flow before reserving contributions and tax. If your budget assumes a CHF 500 reserve for these two items, only CHF 900 is currently available to withdraw.

The CHF 500 reserve is an illustration, not a recommended amount for everyone. Estimate your own requirement and adjust it as the business grows. A cash flow forecast helps anticipate gaps between invoicing, receipts and payments.

This simplified example assumes a business not subject to VAT, with no investments or other cash movements. It illustrates budgeting, not the calculation of taxable profit under your accounting method.

Sell a service that fits your availability

An assignment requiring an immediate response every morning is difficult if you work full-time elsewhere. Agree contact hours, delivery times and the emergencies you can handle. Allow for periods when your main job leaves you less time.

When combining several employed jobs, working-time and rest rules (in French) take account of all jobs covered by the Labour Act. Genuine self-employment is different: the same rules do not automatically apply. Nevertheless, your duty of loyalty remains relevant if fatigue affects your employed work, and some professions have special rules.

When should you reduce your employed hours?

Your first orders are encouraging, but do not yet prove the business can replace part of your salary. Before asking to move to 80% or 60% employment, review several months of sales, receipts and workload. A seasonal business also needs to be assessed during quieter periods.

Base the decision on four elements:

• The actual fall in take-home pay. Request a calculation and check pension and insurance consequences.
• Available business income. Start with expected cash receipts, then subtract expenses and reserves for social contributions and tax.
• A personal financial cushion. Assess how long you could absorb a weak month or the loss of your main client.
• Hours that will genuinely help. Your freed-up day should match when customers need you.

For example, if reduced hours cost CHF 1,200 of net salary per month while the business regularly produces only CHF 800 of available income, your budget still has a CHF 400 gap. Extra working time may close it, but only if demand exists. Confirmed bookings or orders are a firmer basis than a turnover target.

You do not have to leave employment for the project to succeed. You can maintain both activities, adjust your offer or postpone the transition. For a broader change of direction, our guide to changing career to become an entrepreneur also covers personal and pension considerations.

Build a working arrangement you can sustain

Starting a business while employed gives you time to test your offer and build a customer base. Make the most of it by clarifying your relationship with your employer, securing the right status and tracking money from your first assignments.

You can then decide based on actual results: what customers buy, what the business leaves you and how much time it requires. That visibility lets you develop at a pace compatible with your life and commitments.

Sources and references

References checked on 2 November 2026. AHV thresholds shown apply to 2026. English versions are linked where available; French-language sources are marked.

• SECO: secondary activities and duty of loyalty (in French).
• Code of Obligations: Articles 321a, 340 and 340a; Article 931 on the commercial register.
• AHV/IV: self-employed contributions, leaflet 2.02, 2026 edition.
• FTA: taxation of self-employed income (in French); Federal Act on Direct Federal Taxation, Articles 18 and 27 (in French).
• FTA: conditions and start of VAT liability.
• SECO: working time and rest with multiple jobs (in French).
• Suva: distinguishing employment and self-employment (in French).
• FOPH: accident cover and the eight-hour threshold; FSIO: social protection for the self-employed.