What are the notice terms for a border crossing in Switzerland?

The notice terms follow the Swiss Bond Code and grow according to the years of service. During the notice period, the employment relationship continues with all mandatory contributions: AVS/AI/IPG 5.3% employee, AD/AC 1.1% up to the cap of CHF 148'200, LPP according to the age group from 25 years. The commencement date starts from the date of receipt of the letter of dismissal.

How does the tax credit work to avoid double taxation?

Tax at source is only withheld in Switzerland. In Italy, the frontier worker indicates foreign income in the EC framework of the tax return (form 730) and applies the tax credit to avoid double taxation, as provided for by the Convention of 9 December 1976 and the New Agreement in force from 1 January 2024. Italian income tax is calculated on the 23%, 35% and 43% brackets.

What changes between old and new frontier workers in the event of dismissal?

Old frontier workers (already such before 17 July 2023) retain the exemption of €7,500 and the transitional regime 2024-2033. The new frontier workers have a deductible of €10,000. In both cases the Swiss source tax covers the entire income from employment, and Italy avoids double taxation with the tax credit. The New Agreement was signed on 23 December 2020 and ratified by Law 83/2023.

What health coverage is due to the border worker after dismissal?

LAMal is Swiss health insurance (not a health tax). Border workers with a G permit have the right of option: they can maintain Swiss coverage, with an adult exemption from CHF 300 to CHF 2,500, or switch to the equivalent Italian system. The choice must be communicated to the sick fund within the established deadlines. The same rules apply to dependent children, with reduced premiums compared to adults.

What rates and contributions apply during the employment relationship in CH?

Deductions on the Swiss salary include AVS/AI/IPG at 5.3% borne by the employee, AD/AC at 1.1% up to the cap of CHF 148'200, LAINF between 0.7% and 1.5% according to business risk, and LPP between 7% and 18% by age group from 25 years. Tax rates are administered by AFC/ESTV at the federal level and by cantonal tax administrations, never by UFAS or BFS.

Border worker dismissed 2026: notice, allowances and children (cross-border guide)

Di Redazione Frontaliere Ticino · Published on 31 August 2026

Ticino border crossing at dawn with a commuter car waiting at customs

New 2024 Agreement, CO notice, INPS allowance and protections for families with children: what changes for the frontier worker

Context

In a nutshell

New Frontier Agreement in force from 1 January 2024 (not 2026)
Old border guards: exemption €7,500; new: deductible €10,000
Tax at source only in CH, tax credit in Italy (CE framework)
Italian-Swiss double taxation agreement: 9 December 1976

Key facts

What: dismissal of the border worker with family and children
When: Effective from the day of written notice
Where: Canton Ticino, employment relationship governed by the Swiss Bond Code
Who: frontier worker with G permit, Swiss employer, INPS for Italian service
Amount: AVS/AI/IPG 5.3% employee; AD/AC 1.1% up to CHF 148'200; LPP 7-18% by age group from 25 years
Reference: Italy-Switzerland Convention of 9 December 1976; New Agreement of 23 December 2020, ratified by Law 83/2023
Income tax rates: 23% up to €28,000; 35% between €28,001 and €50,000; 43% over €50,000

A frontier worker who falls into the category of "old frontier workers" — already such before 17 July 2023 — continues to benefit from the exemption of €7,500 and the transitional regime 2024-2033. For new frontier workers, on the other hand, the deductible rises to €10,000. The tax at source is withheld exclusively in Switzerland, while in Italy the tax credit mechanism to be indicated in the EC framework of 730 is applied, thus avoiding double taxation.

The regulatory framework between Switzerland and Italy

Taxation

Operational details

When the termination letter arrives, the first practical effect for a cross-border worker concerns the notice period: the Swiss Code of Obligations provides for increasing notice periods based on years of service. During the notice period, the employment relationship continues regularly, with a Swiss paycheck, AVS/AI/IPG contributions, AD/AC, LPP and source tax withholding. LAINF coverage remains active. The worker continues to be registered in Switzerland with a G permit and maintains their tax domicile in Italy.

What happens at the end of the employment relationship

Upon termination, the Swiss employer issues the work certificate and transmits the data to the AVS compensation fund and the cantonal tax office. The cross-border worker retains the G permit for a limited period, but validity is tied to the existence of an employment relationship or lucrative activity. For new cross-border workers hired after July 17, 2023, a deductible of €10,000 applies; for existing cross-border workers, the exemption of €7,500 remains with the transitional regime expiring in 2033. Swiss source tax is calculated on the entire dependent employment income: Switzerland withholds at source, Italy avoids double taxation with a tax credit (section CE of the 730 form).

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Key points

Upon receipt of the termination letter, the first concrete step is to verify the receipt date, which sets the notice period. The next step is to request from the employer the letter with the reason for termination, the calculation of the notice period, and confirmation of the last working day. The third step concerns the payslip: verify that the deductions AVS/AI/IPG 5.3%, AD/AC 1.1% up to the cap of CHF 148,200 and LPP are correct, and that the work certificate is issued upon termination. The AVS compensation fund receives contributions until the last month of work; beyond that date, the Italian contribution position follows INPS rules.

Step-by-step procedure for a cross-border worker with family

Step 1 — Keep all documentation: contract, termination letter, pay slips from the last twelve months, work certificate. Step 2 — Verify your fiscal category: old cross-border worker (exemption €7,500, transitional regime 2024-2033) or new cross-border worker (allowance €10,000). Step 3 — Submit your income tax return in Italy with section CE for the tax credit, thus avoiding the double taxation provided for by the Convention of 9 December 1976. Step 4 — Evaluate health coverage: with permit G you have the right of choice between LAMal and the Italian system; the adult deductible varies from CHF 300 to CHF 2,500. Step 5 — If you have dependent children, update your family situation with the Tax Agency for IRPEF deductions and with the health insurance company for any transition to a lower premium. Step 6 — Consult a tax consultant specializing in Italian-Swiss taxation for the INPS contribution position and for the income tax return in the year of termination.

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Frequently Asked Questions

What are the notice terms for a border crossing in Switzerland?: The notice terms follow the Swiss Bond Code and grow according to the years of service. During the notice period, the employment relationship continues with all mandatory contributions: AVS/AI/IPG 5.3% employee, AD/AC 1.1% up to the cap of CHF 148'200, LPP according to the age group from 25 years. The commencement date starts from the date of receipt of the letter of dismissal.
How does the tax credit work to avoid double taxation?: Tax at source is only withheld in Switzerland. In Italy, the frontier worker indicates foreign income in the EC framework of the tax return (form 730) and applies the tax credit to avoid double taxation, as provided for by the Convention of 9 December 1976 and the New Agreement in force from 1 January 2024. Italian income tax is calculated on the 23%, 35% and 43% brackets.
What changes between old and new frontier workers in the event of dismissal?: Old frontier workers (already such before 17 July 2023) retain the exemption of €7,500 and the transitional regime 2024-2033. The new frontier workers have a deductible of €10,000. In both cases the Swiss source tax covers the entire income from employment, and Italy avoids double taxation with the tax credit. The New Agreement was signed on 23 December 2020 and ratified by Law 83/2023.
What health coverage is due to the border worker after dismissal?: LAMal is Swiss health insurance (not a health tax). Border workers with a G permit have the right of option: they can maintain Swiss coverage, with an adult exemption from CHF 300 to CHF 2,500, or switch to the equivalent Italian system. The choice must be communicated to the sick fund within the established deadlines. The same rules apply to dependent children, with reduced premiums compared to adults.
What rates and contributions apply during the employment relationship in CH?: Deductions on the Swiss salary include AVS/AI/IPG at 5.3% borne by the employee, AD/AC at 1.1% up to the cap of CHF 148'200, LAINF between 0.7% and 1.5% according to business risk, and LPP between 7% and 18% by age group from 25 years. Tax rates are administered by AFC/ESTV at the federal level and by cantonal tax administrations, never by UFAS or BFS.