Internships and traineeships: classification and pay

Taking on an intern seems like a formality: a young person in the company to learn, often for just a few months. In reality, from the standpoint of employment law and social contributions, a paid internship is to all intents and purposes an employment relationship. Getting the classification wrong exposes the employer to contribution adjustments and disputes. Here are the points that matter.

Internship, traineeship, apprenticeship: they are not the same thing

The terms are used interchangeably, but they cover different situations:

• Apprenticeship (dual vocational training): it is a vocational training path governed by the relevant law, with an apprenticeship contract, a training plan and a final certificate (Federal VET Diploma / Federal VET Certificate). It has its own rules and is the most structured form.
• Internship / work placement: it is a period of practical experience in a company, often linked to a course of study (curricular internship) or to entry into the world of work (pre-study or post-diploma internship). It is not a formal, certified path like the apprenticeship.

Terminology varies from country to country: it is worth clarifying which arrangement is meant to avoid misunderstandings — in Switzerland the term “Lehre/tirocinio” corresponds to the apprenticeship.

An internship is an employment relationship

When the intern carries out an activity for the benefit of the company and is integrated into its organisation, the relationship falls under the employment contract of the Code of Obligations, even if it is called an “internship”. Concrete consequences follow:

• a written contract is needed, defining duration, duties, working hours, pay and any probationary period;
• the rules on working time, rest and holidays apply;
• any sector-wide collective bargaining agreement (CBA) applies, which may set minimum wages including for interns.

Only passive observation, with no performance for the benefit of the company, falls outside this framework; but that is a rare case in practice.

Pay

There is no generalised national minimum wage for internships, but several factors come into play:

• some CBAs and some cantonal rules set minimums applicable to interns and trainees as well;
• an unpaid or token internship, set against real and continuous work, is at risk of reclassification;
• good practice is to provide pay consistent with the activity actually carried out and with the level of autonomy.

The practical rule: the more the intern works like an employee, the more they must be treated as one on pay as well.

Social contributions

The intern’s salary is subject to the same social contributions as for other employees:

• AHV/IV/EO (old-age, disability and loss-of-earnings insurance) and ALV (unemployment insurance), with the ordinary allowances and age rules;
• UVG (accident insurance), which is mandatory;
• BVG (occupational pension): coverage depends on exceeding the annual salary threshold and on age; many short or low-paid internships remain below the threshold, but this must be verified case by case.

The employer pays its own share and withholds the employee’s, as for any salary. Ignoring this step is the most costly mistake.

Permits for interns from abroad

For an intern coming from abroad the ordinary rules on work and residence permits apply, differentiated between EU/EFTA citizens and third countries. An internship does not exempt from authorisation obligations: it must be planned well in advance.

Common mistakes

• Treating the internship as extra-contractual and skipping the written contract and contributions.
• Failing to check whether a CBA with minimums for trainees exists.
• Confusing internship and apprenticeship, applying the wrong rules.
• Forgetting UVG and the check on the BVG threshold.

In summary

• A paid internship is an employment relationship: written contract and rules of the Code of Obligations.
• Pay must be consistent with the activity; watch out for CBAs and cantonal rules.
• The salary is subject to AHV/IV/EO, ALV, UVG and possibly BVG.
• An apprenticeship is a different matter: a training path with its own rules.

How we help you

We set up internship contracts, salary calculation and the full management of social contributions for companies, with checks on CBAs, BVG thresholds and permit obligations. We manage your interns.