Spesen (Expense Reimbursement)
Spesen are out-of-pocket expenses an employee incurs during work—travel, meals, accommodation, or materials—that you reimburse in full without tax withholding. They differ from salary: reimbursement is not income, it's restoration of what the employee already spent. Proper documentation and separation from wages protect both parties.
Spesen are legitimate job-related costs your employee pays upfront and submits to you for reimbursement. Classic examples: train fare to a client site, meal during a business trip, hotel stay, or office supplies purchased on company errands.
Reimbursement is not wages. It's a return of the employee's own money, so it carries no social contributions, no income tax withholding, and no Quellensteuer. Your obligation is to reimburse promptly and fully, with no deduction or delay.
When Spesen arise and your obligations
Spesen claims come up whenever work requires the employee to spend personal money. Common triggers: travel beyond walking distance, multi-day assignments, client entertainment, or emergency supplies. You must reimburse the actual documented amount within a reasonable timeframe—typically within 30 days of submission.
Swiss law (Arbeitsgesetz, ArG) and cantonal employment codes require you to cover reasonable work expenses. The employee should not bear the cost of their job. If your employment contract or Betriebsreglement silence on reimbursement policy, the ArG default applies: you pay.
- Require receipts or invoices for all Spesen claims above CHF 50
- Establish a clear reimbursement policy—specify which expenses qualify and the approval workflow
- Reimburse within 30 days; delayed payment can breed disputes
- Never deduct Spesen from salary or subtract them as a 'loan'
- Keep a register of all Spesen approved and reimbursed for accounting audit
- Train managers to distinguish Spesen from salary-in-kind or taxable benefits
Tax and social security treatment
Spesen reimbursement is tax-neutral for both employer and employee. The employee does not report reimbursement as income. You do not withhold income tax, Quellensteuer, or social contributions on Spesen—only on wages.
Your accountant should categorize Spesen on the business-expense side of the ledger, not payroll. If an expense genuinely qualifies as a benefit or bonus instead of reimbursement—for instance, a weekly CHF 15 meal allowance instead of receipted reimbursement—it becomes taxable and liable for contributions.
- Reimbursement of actual documented expenses = no tax withholding needed
- Flat allowances or per-diem rates may be taxable—consult your canton
- Keep Spesen records separate from payroll ledgers for clarity in audits
- Document the business purpose: 'Client visit, Zurich' not just 'Travel'
- If an employee receives both Spesen and a salary component for the same expense, flag it immediately
- Cross-check with your accountant annually to avoid misclassification
The single most common mistake
Employers often blur Spesen with salary or treat reimbursement as a discretionary bonus. They withhold tax, delay payment, or deny reasonable claims because 'it wasn't in the budget.' This creates tax liability for the employee and shows bad faith under the ArG.
Another frequent error: setting a flat 'Spesen allowance' (e.g. CHF 200/month) instead of reimbursing actual receipts. This allowance becomes taxable income, not expense recovery. If you offer a fixed amount, be clear it is a taxable benefit, not Spesen.
- Do not withhold tax on legitimate Spesen—only on wages and benefits
- Do not delay reimbursement; prompt payment is a legal and practical obligation
- Do not require employees to absorb work costs to keep them lean; the ArG forbids it
- Do not mix Spesen policies between employees; consistency avoids discrimination claims
- Do not assume 'small amounts' need no receipt; document everything above CHF 20
- Do not reimburse personal expenses disguised as work costs; maintain clear boundaries
Frequently asked questions
- Can I reimburse Spesen in cash without a receipt?
- For small amounts (typically under CHF 20), informal receipts or a brief note may suffice. Above that, you should request an invoice or receipt showing the date, vendor, amount, and business purpose. If audited, you must prove the expense was legitimate and job-related. A receipt protects both you and the employee.
- What if an employee inflates Spesen claims or submits personal expenses?
- Review each claim carefully before approval. Discuss any doubt with the employee—there may be honest confusion. If fraud is suspected, document it and address it in a formal conversation. If the pattern continues, you may discipline or terminate according to your Personalreglement and Swiss employment law. A lawyer can advise on the steps.
- Do I need to report Spesen on the monthly payslip?
- Not necessarily. Spesen are reimbursement, not wages, so they need not appear on the salary statement. However, some employers list them separately for transparency. If you do list them, clearly label them 'Spesen' or 'Reimbursement' and exclude them from gross salary calculations for tax and contribution purposes.
General information for Swiss employers, not legal advice. Have a lawyer confirm anything with legal consequences.