Stablecoin Payroll in Switzerland

Enable stablecoin payments for your Swiss-based team while maintaining full compliance with Swiss labour law, tax and payroll obligations.

Highlights

• Instant global payouts via stablecoins, reducing cross-border bank fees and delays.
• Modern compensation model combining Swiss Franc (CHF) base salary + token component.
• Legal basis under Swiss employment law (Swiss Code of Obligations (“CO”), SR 220) and crypto tax guidance from the Swiss Federal Tax Administration (SFTA).

Employment Types & Stablecoin Payroll: Swiss Tax & Labour Treatment

Regular Employees

• Under Article 323b(1) CO, wages must be paid in Swiss legal tender (CHF) unless otherwise agreed by contract. 
• Employment contracts (Art 319 et seq. CO) must define salary, working hours etc. 
• By agreement, part or all of a salary may be denominated in foreign currency or even token/crypto, provided the CHF equivalent is determined and the employee can convert without undue obstacle.
• If a token component is used:
  
  • The employer should convert to CHF equivalent at payment date for payroll & social security base.
  • Social insurance contributions (AHV/AVS, pension scheme, unemployment insurance) must still be calculated and remitted in CHF.
• Payslips should reflect CHF salary + token equivalent value.

Freelancers / Contractors

• For Swiss-resident contractors, remuneration in stablecoins counts as income from self-employment or service provision and must be declared in CHF equivalent value. 
• VAT implications depend on the service rendered; cryptocurrency payment itself isn’t automatically a VAT event but the underlying service may be taxable.

Stablecoin Taxation Framework in Switzerland

• Crypto-assets are treated as assets under Swiss tax law and subject to wealth tax (for private individuals) at cantonal/municipal level.
• For employment income: if stablecoins are paid as salary or benefit, the CHF equivalent at time of receipt must be declared as earned income.
• Capital gains on crypto as private assets are generally tax-exempt unless classified as professional/trader activity.
• There is no special “crypto payroll law”; general tax and employment law applies. 

Payroll Compliance Process for Stablecoin Payments

1. Agree employment contract: base salary in CHF + optional token/ stablecoin component, with method to determine CHF equivalent.
2. For employee salary: convert token amount at payment date → establish CHF equivalent for salary and social contributions.
3. Deduct and remit social insurance contributions in CHF as required under CO. 
4. Issue payslip with clear breakdown: CHF salary + token equivalent + token amount.
5. For contractors: issue invoice in CHF equivalent, declare as self-employment income.
6. At year-end: include token holdings in wealth tax declaration; employees must declare token salary income.
7. Maintain documentation of conversions, token payments, payslips in case of audit.

Regulatory & Compliance Considerations

• Labour law basis: Employment contracts regulated by CO (SR 220) and Labour Act (Switzerland) (SR 822.11).
• Crypto regulation: No dedicated crypto payroll legislation; tokens often treated as assets or payment tokens.
• Employers offering compensation in tokens must still ensure compliance with Swiss minimum wage provisions where applicable, collective agreements, and currency risk disclosure.

Bottom Line

For Swiss-based teams, combining a CHF salary base with a stablecoin token component can offer a modern, flexible compensation model—but it must be structured carefully to satisfy Swiss employment law, payroll/social insurance requirements and tax obligations. 

By treating the token component as a CHF-equivalent salary portion, issuing proper payslips, converting for social contributions and declaring in tax filings, companies can deploy stablecoin payroll while remaining compliant under Swiss law.

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