Payrolling
is an arrangement where a licensed provider formally employs workers that a client company has selected, and runs their payroll, contracts and insurances, while the client directs the daily work. Common in Switzerland (Personalverleih) and the Netherlands (payrolling under the WAB), it is the standard compliant route for agency contractors.
Who is payrolling for?
Three typical users:
- Recruitment agencies that place contractors but do not want to run licensed employment in each country.
- End clients engaging known contractors compliantly without opening an entity or an employment relationship of their own.
- Contractors who want full employee protections — social insurance, pension, sick pay — while working assignment-based.
Take-home pay under payrolling is typically 60–70% of the client rate after both sides of social contributions and the provider margin; the exact figure depends on country and pension plan. For the Swiss specifics — rates, deductions and licence checks — see our guide to payrolling in Switzerland.
How does payrolling work in 2026?
You find the worker; the payrolling company becomes their legal employer. It signs the employment contract, registers social insurances and pension, withholds tax, invoices your company for hours worked plus a margin, and pays the worker a net salary with a local payslip.
Because the worker operates under your direction, most jurisdictions treat payrolling as labour leasing and regulate it: Switzerland requires cantonal and federal SECO licences, Germany an AÜG licence, and the Netherlands applies equal-treatment rules under the WAB with sector certification (SNA/NEN 4400-1) expected by most clients.
Payrolling at a glance
| Country | Regulatory frame | What to verify |
|---|---|---|
| Switzerland | Labour leasing under AVG/LSE | Cantonal + federal SECO licence (public register) |
| Germany | AÜG (Arbeitnehmerüberlassung) | AÜG licence from the Federal Employment Agency |
| Netherlands | WAB payrolling rules | SNA / NEN 4400-1 certification |
| United Kingdom | Umbrella employment | PAYE compliance; from April 2026 agencies carry PAYE liability |
The bottom line for agencies and clients
Payrolling moves employer liability to the provider, but only a licensed provider makes that transfer real: an unlicensed intermediary leaves fines and back-contributions with the client. Verify licences in public registers before contracting, and compare margins together with the pension plan they fund. Access Financial runs licensed payrolling in Switzerland and across Europe — request a same-day net-pay illustration for your candidate.
FAQ
Quick answers to the questions that come up most often.
What is the difference between payrolling and an umbrella company?
They overlap heavily: both employ workers and run payroll while a client directs the work. ‘Umbrella company’ is the UK term, usually contractor-initiated; ‘payrolling’ (Switzerland, Netherlands) usually starts from the client or agency, which selects the worker and asks a provider to employ them. Legally both are forms of regulated labour leasing in most of Europe.
Is payrolling legal?
Yes — where the provider meets local rules: SECO licences in Switzerland, an AÜG licence in Germany, WAB equal-treatment and certification in the Netherlands, PAYE compliance in the UK. Legality attaches to the provider’s licences and practices, so checking the public registers before signing is the single most important due-diligence step.
How much does payrolling cost?
Providers charge a margin of roughly 3–6% of the billed rate or a flat fee of EUR/CHF 300–700 per month. Statutory employer contributions — typically 13–25% of gross salary in Europe — pass through at cost. The visible margin is not the full story: pension plan quality and included insurances differ, so compare net pay simulations, not percentages.
Does payrolling include a pension?
In serious markets, yes: Swiss payrolling must enrol workers in a BVG occupational pension, Dutch payrolling follows sector pension obligations, and UK umbrellas auto-enrol into a workplace pension. Quality varies widely though — the margin often funds only the legal minimum plan, so ask for the pension certificate before comparing providers on price.