Using per diem rate guidelines for expenses is a simple and effective way to compensate employees when they travel for business. Whether employees are travelling to France, Germany, Austria, or even further afield to Australia, understanding the guidelines on rates per diem in Switzerland ensures consistent, compliant, and accurate expense management. Here, we break down Switzerland’s per diem guidelines and answer the most pressing questions.
What are per diem rates for business travel?
Per diem rates for business travel
are fixed amounts that employers pay employees to cover the costs of accommodation, meals, and incidental expenses when travelling for business. Governments usually set benchmark allowances for travel that consider factors such as average maximum accommodation costs, the general cost of living, and any travel regulations. Per diem rates typically vary based on the business travel destination and, in some cases, the location of the company, especially in major cities and business hubs.Are per diem rates mandatory?
One of the biggest advantages of following per diem rates is that employees don’t need to keep and submit all receipts to be reimbursed for travel expenses. However, businesses don’t have to follow per diem rates. They can decide whether employees should submit expense reports or they can choose which per diem rates to apply. For example, they can follow some per diem guidelines (such as those for meals and accommodation) while setting out their own budgets for accommodation and flight costs in a
corporate travel policy
. What are the most important things to know about per diem rates in Switzerland?
The most important thing to know about per diem rates in Switzerland is that there are none. Unlike countries such as Belgium, Finland, and Italy, the Swiss government does not provide any specific rates, allowances, or limitations, leaving it up to businesses to determine their own per diem allowances for business travel and reimbursements.In Additionally,
Article 327a
of the Code of Obligations within the Swiss Civil Code, the following rules regarding employee expenses apply: - Businesses must reimburse all expenses incurred by employees during work-related activities, as well as necessary living expenses for activities performed away from the employer’s premises.
- A fixed amount, such as a per diem or a weekly/monthly allowance, can be used to reimburse expenses, as long as it’s specified in an individual agreement, standard employment contract, or collective employment contract and covers all necessary costs.
- Any agreement that requires the employee to cover all or part of these necessary expenses is invalid.
Article 327c
sets out the rules surrounding payment dates for employee expenses: - Based on the expense report submitted, expenses are typically reimbursed alongside the employee’s salary, unless a shorter period is customary or has been prearranged.
- When an employee regularly incurs expenses as part of their job, the employer must provide regular advances to cover these costs, with payments made at least once a month.
If there are no official per diem rates in Switzerland, what business travel expenses are covered?
In the absence of specific per diem guidelines in Switzerland, Swiss tax authorities recognize several rules for reimbursable
business travel expenses
.Recognised business travel expenses
- General travel expenses: These include transport costs and incidental expenses like parking tickets and tolls related to business travel. Reimbursement is provided only for travel outside the designated place of work and excludes daily commutes to the office.
- Accommodation costs: Expenses for overnight stays during business trips are generally eligible for reimbursement. If an employee works away from home for an extended period, they may also be reimbursed for reasonable leisure and well-being expenses, such as gym passes or show tickets.
- Meals purchased during business travel: Meal costs incurred while travelling are typically eligible for reimbursement. They can be reimbursed either based on actual expenses or at a flat rate, however, there may be maximum allowances determined by both the employer and tax regulations.
Unrecognised business travel expenses
- Personal travel expenses (including the cost of regular commutes to the office)
- Traffic fines, including those incurred during business trips
- Expenses that don’t have the correct supporting documentation
Effective and flat rate expense reimbursement in Switzerland
Although Switzerland’s government does not set per diem rates, there are two ways in which businesses can handle the travel expense reimbursement process:
Effective expense reimbursements
This method reimburses employees for the amounts they actually spent, requiring detailed documentation and receipts to support each claim. lthough this approach reimburses employees with the exact amounts they’ve spent, it also increases the administrative burden for both employees and finance departments.
Flat-rate reimbursements
This approach allows employers to provide fixed reimbursement allowances for specific expense categories. While this method eliminates the need for such detailed supporting documentation, it can also result in overpayment or underpayment of the actual expenses incurred. Examples of expenses that can be reimbursed using the flat-rate method: It’s important to note that flat-rate expense reimbursements are usually used for smaller expenses up to CHF 50 (or CHF 100 in some cases) and are aimed at reducing complex expense and reimbursement processes.
- Meals with business partners and customers
- Snacks during business travel (excluding lunch and dinner allowances)
- Public transport costs during business travel
- Car expenses for frequent use of a personal vehicle for business purposes
Are there any expense reimbursement limits in Switzerland?
Yes, the Federal Tax Administration (FTA) sets out several expense reimbursement limits for both effective and flat-rate expenses:
- The effective reimbursement limit for lunch is CHF 35 with a receipt
- The flat-rate allowance for lunch is CHF 30
- The mileage limit for car expenses is set at 70 cents per kilometer
- For small expenses, there is a maximum daily flat rate allowance of CHF 20
Per diem rates in Switzerland: No fixed rates, but rules still apply
Unlike other countries like Canada, The Netherlands, Norway, and Ireland, the Swiss government doesn’t provide its own per diem guidelines. Businesses are responsible for setting their own travel budgets (including meal expenses, lodging rates, and mileage rates) and using either the effective or flat-rate reimbursement method. Plus, there are no differences between the major cities — reimbursements remain the same, no matter whether your business is based in Bern, Geneva, or Zurich. Without per diem rates as a benchmark, it can be challenging to manage business travel expenses effectively, especially for international travel.
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Frequently Asked Questions
How does my business set travel expense allowances for international travel?
What is the mileage allowance?
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