Finding the right hourly rate is one of the hardest decisions for freelancers and self-employed persons in Switzerland. Set it too low and you work below your value, unable to cover your costs. Set it too high and you lose contracts. The good news: The optimal hourly rate can be calculated mathematically — if you know which costs to factor in.
In this article, we show you the complete formula, walk through a concrete example and provide an overview of industry-standard hourly rates in Switzerland.
01The Basic Hourly Rate Formula
Your hourly rate must cover all costs that an employee does not have — plus a profit that yields your desired net income. The formula:
Let's look at each of these components in detail:
02Billable vs. Non-Billable Hours
The biggest mistake in hourly rate calculation: Not all working hours are billable. You also work without a contract — acquisition, administration, bookkeeping, training, writing quotes. You cannot invoice a client for these hours.
Realistically, 60–70% of hours are billable. The calculation:
| Item | Days / Hours |
|---|---|
| Calendar days per year | 365 |
| Minus weekends | −104 |
| Minus public holidays (Swiss average) | −9 |
| Minus holidays (4–5 weeks) | −25 |
| Minus illness / absence | −5 |
| = Available working days | 222 |
| x 8 hours per day | = 1'776 hours |
| x 65% utilisation (billable) | = approx. 1'155 hours |
With 1'155 billable hours per year, you have a realistic basis. Beginners should calculate with 60% (approx. 1'066 hours), experienced freelancers with efficient acquisition can achieve up to 70% (approx. 1'243 hours).
03Costs You Must Factor In
As a self-employed person in Switzerland, you bear costs that for employees are covered by the employer. You must price these into your hourly rate:
1. Social Contributions (OASI/DI/APG)
Self-employed persons pay the entire OASI/DI/APG contribution alone — for employees, employer and employee share the costs equally. The contribution rate totals 10.0% on income from CHF 58'800 in 2025/2026 (declining contribution scale for lower income). In addition, there is the administrative cost flat rate of the compensation office (approx. 1–3% on contributions).
2. Occupational Pension (BVG / 2nd Pillar)
Self-employed persons are not subject to mandatory BVG but can join voluntarily. If you want to insure yourself — which is recommended — you bear the entire contributions yourself (for employees, the employer pays at least half). Budget 10–15% of income, depending on the pension plan and age.
3. Pillar 3a
Self-employed persons without BVG affiliation may contribute up to 20% of earned income, maximum CHF 36'288 to pillar 3a in 2025/2026. With BVG affiliation, the maximum is CHF 7'258. These contributions are tax-deductible and should be factored into the calculation.
4. Insurance
- Daily sickness allowance insurance: approx. CHF 1'500–3'000 per year (covers income loss during illness — as a self-employed person there is no employer to continue paying)
- Accident insurance (UVG): Self-employed persons are not mandatorily UVG-insured but can insure voluntarily (approx. CHF 1'000–2'500 per year)
- Professional liability insurance: Depending on industry CHF 300–1'500 per year
5. Operating Costs
- Office rent or coworking (CHF 300–1'000/month)
- Hardware (computer, monitor, peripherals — as depreciation)
- Software and licences (CHF 100–500/month)
- Telephone and internet (CHF 100–150/month)
- Training (CHF 1'000–3'000/year)
- Bookkeeping, tax return (CHF 500–2'000/year, or self-managed with einzly)
- Marketing and acquisition (CHF 0–5'000/year)
04Calculation Example: Calculating the Hourly Rate
Sarah is a self-employed UX designer in Bern. She wants to earn a net CHF 80'000 per year (comparable to a gross salary of approx. CHF 100'000 as an employee). Here is how she calculates her hourly rate:
Step 1: Calculate annual costs
| Item | Amount / Year |
|---|---|
| Desired net income | CHF 80'000 |
| OASI/DI/APG (10.0%) | CHF 8'000 |
| Voluntary BVG contributions | CHF 6'000 |
| Pillar 3a | CHF 7'258 |
| Daily sickness allowance insurance | CHF 2'400 |
| Accident insurance (voluntary UVG) | CHF 1'800 |
| Professional liability | CHF 600 |
| Coworking space (12 x CHF 500) | CHF 6'000 |
| Hardware (depreciation) | CHF 1'500 |
| Software and licences | CHF 3'600 |
| Telephone / Internet | CHF 1'440 |
| Training | CHF 2'000 |
| Marketing / Website | CHF 1'500 |
| Bookkeeping (einzly subscription) | CHF 200 |
| Profit margin / buffer (10%) | CHF 12'230 |
| Total annual costs | CHF 134'528 |
Step 2: Calculate billable hours
Sarah calculates with 65% utilisation (she has been self-employed for 3 years and has a solid client base): 222 working days x 8 hours x 65% = 1'155 hours.
Step 3: Calculate hourly rate
Sarah should therefore charge at least CHF 120 per hour to cover her costs, save for retirement and have a buffer.
05Industry-Standard Hourly Rates in Switzerland
The following hourly rates are indicative values for experienced freelancers in Switzerland (2025/2026). Beginners typically start 20–30% below, while specialists and seniors can charge significantly more.
| Industry / Activity | Hourly Rate (CHF) | Day Rate (CHF) |
|---|---|---|
| Software development | 140–220 | 1'100–1'760 |
| UX/UI design | 120–180 | 960–1'440 |
| Graphic design | 100–150 | 800–1'200 |
| Web design / Web development | 120–180 | 960–1'440 |
| Marketing / Social media | 100–160 | 800–1'280 |
| Copywriting / Content creation | 90–140 | 720–1'120 |
| Management consulting | 150–300 | 1'200–2'400 |
| Photography | 100–180 | 800–1'440 |
| Translation | 80–130 | 640–1'040 |
| Bookkeeping / Fiduciary | 100–160 | 800–1'280 |
06Tips for Pricing
- Calculate from the bottom up: Always start with your actual costs, not what 'others charge'. Your hourly rate must cover your individual situation
- Don't forget retirement provision: Many freelancers do not factor in OASI and BVG and are surprised by high back-payments at year-end. These costs are not optional
- Increase regularly: Adjust your hourly rate annually — at minimum by inflation (CPI index). With increasing experience and specialisation, larger increments are justified
- Differentiate by client: A start-up with a small budget and a large corporation have different willingness to pay. Many freelancers work with 2–3 price tiers
- Consider project flat rates: Not every assignment needs to be billed by the hour. For clearly defined projects, a flat fee can be more attractive for both sides — and you benefit from your efficiency. As a coach, for example, package prices for coaching sessions are a proven model
- Never go below your minimum: Know your minimum hourly rate (= all costs without profit margin / hours) and never go below it. Better to decline an assignment than work below cost
Excel template with formulas to calculate your optimal hourly rate
Once you know your hourly rate, you also need proper time tracking. Download our free time sheet template — with automatic amount calculation and a monthly overview by client.