Minimum wage Switzerland?

Hello

Is there a legal minimum wage in Switzerland? Does anyone know?

Kind regards

Hi Chipmunk,

Average salaries in Switzerland are among the highest in the world, and even unskilled laborers earn salaries which equal those paid to highly-skilled professionals in many other countries.

But curiously enough, those high wages are primarily the product of supply and demand, because Switzerland is one of the few countries in the world which does not dictate a legal minimum wage on a national level.

On the May 18, 2016, Switzerland voted against a referendum which would have forced employers across the country to pay a minimum wage of 22 francs per hour. For reference, the minimum hourly wage in the United States is 7.25 U.S. dollars, while Germany has a minimum hourly wage of 8.84 euros (2017).

However, it is important to note that laws regarding minimum wages can differ on a cantonal level. Currently, the only canton which imposes a minimum wage is Neuchâtel, where employees are entitled to wages of at least 20 Swiss francs per hour – around double the German minimum wage and close to three times the U.S. minimum.

A popular initiative to impose a minimum wage of 19.25 francs in Jura was accepted by the population, but is still in the legislation process. The Canton of Ticino is passing similar legislation, with the difference being that minimum wages differ between industries.

For employers, and for small businesses and startups in particular, not having to deal with minimum wages provides a lot of flexibility because employers and employees are free to agree on solutions that are mutually beneficial.

For employees, however, the absence of a minimum wage can make it difficult to gauge what wage they can expect to earn. These tips from a Swiss salaries expert provide advice on how to go about negotiating your salary in Switzerland.

It is worth noting that many employers in Switzerland follow wage guidelines set forth by labor unions. Recommended minimum wages differ between regions and may also vary depending on the skills, experience, education and position of the employee in question.

For example, an engineer with 3 years of experience working in Geneva would be entitled to a minimum monthly wage of 6120 francs if their employer subscribes to rules put down by the UNIA labor union. Using the same labor union’s guidelines, a hair stylist would only be entitled to between 3400 and 3800 francs per month, depending on their qualifications and experience.

However, employers are not obligated to subscribe to labor unions, so minimum wages set forth by these unions primarily function as a guideline. With the exception of the cantonal minimum wage regulations mentioned above, it is entirely up to Swiss employers and employees to agree on wages that work well for both of them.

Best regards

Moneyguru

Many Swiss industry associations make wage recommendations to their members, and member companies generally follow these. In a small country like Switzerland, these industry associations have a lot of muscle as any business in their sectors which wants to be taken seriously generally has to be a member. So in a sense, there are minimum wages in Switzerland, but these are set by industry association per sector rather than the state.