Switzerland is known for its comfortable living, high cost of living and high wages. But how much do you know about the minimum wage in Switzerland?
If you want to find a job or get a work visa in Switzerland, you might be wondering how much money you can earn. After all, this alpine country in the heart of Europe is known for its high wages offsetting its higher cost of living. However, before you can't wait to start shopping, it's important to know all about payment-related things in Switzerland.
From average wages to minimum wages, it's always a good idea to do a survey in advance. This article is all you need to know about the Swiss minimum wage, including:
- Minimum wage in Switzerland
- Average salary in Switzerland
- Gender pay gap
- Wages for expatriates
- What to do if your salary is too low
Swiss minimum wage
You might be surprised if you know that Switzerland doesn't have a mandatory minimum wage in place nationwide. In 2014, Swiss voters vetoed a measure to introduce the world's highest minimum wage – 22 Swiss francs per hour, or 4,000 Swiss francs per month. More than 75 percent of voters opposed the legislation, and it remains a hot topic in the country to this day.
View to roofs of Zurich, Switzerland
Employers usually set wages for Swiss workers, and the Organisation for Economic Co-operation and Development (OECD) has always considered Switzerland to be one of the highest paid countries in the world with annual salaries, at around CHF 6,500 per month. However, the National Standards Supporters Coalition says many workers earn much less. For example, the 17,000 full-time employees in the city of Zurich earn around CHF 4,000 per month before deducting expenses in 2020. The union includes many Swiss trade unions and employers' associations. The alliance said the lowest-earning occupations include sales and courier services. It also disproportionately affects women in the workforce, accounting for about two thirds of the affected women.
Minimum wage differential in Switzerland
Despite the lack of nationwide regulations, several of Switzerland's 26 cantons have passed their own minimum wage requirements. Geneva voters approved the world's highest minimum wage in 2020. The salary of 23 Swiss francs per hour is 4,000 Swiss francs per month. However, Geneva is considered one of the most expensive places to live in Switzerland. The new wage requirement takes precedence over clauses in individual contracts or collective agreements that provide for lower wages. Apprenticeships, internships, employment contracts with persons under the age of 18, and the agricultural sector are exempt. The amendment also stipulates that wages are adjusted annually according to the cost of living.
Cities such as Winterthur, Zurich and Kloten are also currently working to introduce a local minimum wage of CHF 23. At the same time, from January 2021, the canton of Ticino will gradually introduce a minimum wage of 19.75 to 20.25 Swiss francs. The cantons of Neuchâtel and jura set a minimum wage of 20 Swiss francs in 2017.
Other changes to the Swiss minimum wage are the result of various labour law agreements at the national, regional, cantonal, industrial sector and corporate levels. For example, depending on the applicable skills and certificates, the minimum wage for Swiss domestic workers ranges from 19.20 Swiss francs to 23.20 Swiss francs. Collective Labor Agreements (CLA) or Gesamtarbeitsvertrag (GAV) can also regulate everything from termination of employment to leave allowances. The most famous of these agreements is the Collective Labour Agreement (L-GAV) for the hotel and catering industry. This is binding on all employers and employees in the sector.
Swiss Minimum Wage Calculator
If you're looking for a job, you might want to know about your potential income. The National Secretariat for Economic Affairs (SECO) offers an online national wage calculator to provide a concept of typical wage ranges in various sectors in Switzerland. It will then tell you the possible salary based on your profile (age, experience, training and education, position in the company, occupation, etc.).
What if you don't get the minimum wage in Switzerland
Regulations and penalties for labour disputes vary from canton to canton in Switzerland. In Geneva, for example, employers who do not pay a minimum wage of CHF 23 per hour will face an administrative fine of CHF 30,000. For repeated or very serious violations, they may face harsher penalties. If you don't get the minimum wage in Geneva, you can ask générale de l 'office cantonde l 'inspection et des relations du travail (in French), also known as OCIRT. For more information on employment matters.
Alternatively, in Switzerland, workers who receive a minimum wage under a collective bargaining agreement should contact their trade union or employers' association. In collective labor disputes involving several employees, the State Mediation Commission is responsible for handling the case. Federal employees should contact the responsible administrative office regarding labor complaints.
In general, there is no clear way to report unpaid wages in Switzerland. The fact that Switzerland does not have any legal protection for whistleblowers also complicates labor disputes.
Although Switzerland does not have a national minimum wage, the wages of Swiss workers are among the highest in the world. According to the OECD, the average annual salary in Switzerland in 2019 was 60,847 Swiss francs. Average wages have remained relatively stable over the past decade. However, when looking for a job in Switzerland, salary is not the only factor to consider. There are plenty of other job benefits you should take into account.
All employees in Switzerland have at least four weeks of holidays every year. Workers under the age of 20 have 5 weeks of leave. Other absences (such as accidents, illnesses or bereavements) are at the discretion of the employer. Many employers will purchase insurance that pays 80% of an employee's salary in the event of a prolonged absence from work. Employers pay at least half of the premiums. All working mothers (full-time and part-time) have 14 weeks of paid maternity leave. From 1 January 2021, working fathers will also be entitled to paternity leave.
Average salary by industry in Switzerland
Here's a quick overview of your expected income in various sectors of the Swiss economy. The data was compiled by the Swiss Federal Statistical Office (FSO) in 2018.
Average salary in Switzerland by job function
In addition, the table below shows some estimated average wages for different jobs in Switzerland. These gross salary estimates from lonhncomputers, an agency, are calculated on the basis of full-time contracts. However, these average salaries will vary depending on your region. Generally speaking, in big cities like Zurich and Basel, you'll earn more than you would in rural or remote areas.
Wage check tool in Switzerland
There are several ways to compare your salary in Switzerland. The National Secretariat for Economic Affairs (SECO) has a national salary online calculator that provides you with a typical view of salary ranges based on your industry, age, experience and education level. You can also compare your jobs.ch or Glassdoor sites on sites like Jobs.
Gender pay gap in Switzerland
When it comes to women's rights and gender equality, Switzerland lags behind many other European countries. It is well known that Swiss women did not gain the right to vote at the federal level until 1971. Although, on this issue, policy changes are slowly progressing. In the World Economic Forum's Global Gender Gap Report 2020, Switzerland ranked 18th, up two places from 2018.
Compared to other Western European countries, Switzerland has a particularly large gender income gap. In Italy, women earn 5% less than men. Meanwhile, in Switzerland, women's wages are 19 percent lower than men's. This means that women's monthly wages have been reduced by approximately 1,512 Swiss francs. According to a report by the Federal Office for Gender Equality, 45.5 percent of this gap cannot be explained by factors such as professional status, years of service or seniority. The Government therefore concluded that the wage differential of 642 Swiss francs was discriminatory. In the Private Sector in Switzerland, the average wage gap between men and women is 19.6 per cent. In the public sector, women earn 18.1 per cent less than men. The largest wage gap between men and women was in eastern Switzerland (11.5 per cent) and the smallest in the Zurich region (7.6 per cent).
Until recently, Switzerland had not taken any legal measures to address the gender pay gap. However, on 1 July 2020, a new provision under the Swiss Federal Law on Gender Equality (GEA) came into force. Businesses with more than 100 employees (full-time or part-time) now have to conduct what is known as an "internal analysis of wage equality." If the analysis finds that the unexplained wage difference exceeds the 5% threshold, the analysis must be repeated after four years. However, this new legislation will automatically lapse on July 1, 2032.
Wages for foreigners in Switzerland
Over the past 20 years, Switzerland has experienced waves of immigration. Of the 8.4 million people living in Switzerland in 2018, nearly 2.1 million were foreigners. More than two-thirds are from EU and EFTA countries. Foreigners also accounted for 32.4%. A government report shows that between 2014 and 2019, the number of foreign workers increased by more than five times the number of workers in Switzerland.
However, this does not mean that it is easy to find a job as a foreigner, even if you have obtained a Swiss work visa or permit. The Swiss National Center of Competence in Research found that citizens with a foreign background had to submit 30 percent more applications than job applicants in their home countries to get interviews. In addition, the unemployment rate for foreign nationals is two to three times higher than for Swiss nationals.
According to a study commissioned by the National Secretariat for Economic Affairs (SECO), between 2003 and 2013, foreign male workers who entered the local job market earned 6.4% less than their Swiss counterparts. However, after five years of work, foreign workers earn 1.9 per cent more than Swiss nationals. This study reveals different situations for foreign women. They already earn more than Swiss women in their first year in the local job market. This may be because women from other countries generally have more professional experience than Swiss women.
If you want to find a well-paying job in Switzerland, you might want to look at the main drivers of the Swiss economy – the financial and pharmaceutical industries. The country is also home to one of the world's largest concentrations of Fortune 500 companies.
What to do if your salary in Switzerland is too low
If you feel that you are discriminated against at work on the basis of gender, race or disability, you can take legal action against your employer in a Swiss court.
Switzerland's Gender Equality Act requires companies convicted of gender-based pay discrimination to reimburse the difference in wages. If you believe you are being unfairly paid because of your gender, the Federal Office for Gender Equality (FOGE) recommends that you seek a solution with your employer before going to court. Your company will even have dedicated people to oversee gender equality issues in the workplace.
If you cannot reach an agreement, you should contact the Equal Opportunities Office, the Counseling Centre, the Employees' Association or the Union. Each state has a mediation body that focuses on gender equality at work. Legal proceedings at the state level are free. However, you have to pay attorneys' fees. During this process, or within six months of mediation or court proceedings, no dismissal may be made on the basis of a claim for discrimination.