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Switzerland: Pay and benefits

Updating author: Marco Toni

Summary

  • A central obligation for the employer under the employment contract is to pay the employee remuneration, calculated in terms of the time worked or work performed. (See General)
  • Statute provides that an employee has a right to bonus payments only if such payments have been agreed. (See Bonus payments and profit-sharing)
  • Unless otherwise agreed or customary, employees must be paid on a monthly basis, at the end of each month. (See Payment of wages)
  • Employers must deduct from gross pay the statutory and occupational social security contributions that the employee is obliged to pay, and pass these on to the relevant bodies. (See Deductions)
  • Women and men have a constitutional right to equal pay for work of equal value. (See Equal pay)
  • There is no statutory national minimum wage. (See National minimum wage)
  • Employers must make contributions in respect of their employees to the state old-age pension scheme. (See Pensions)
  • Employers are not normally obliged to deduct income tax at source from employees' pay, and individuals are responsible for paying their own tax. (See Income tax and social security)
  • If employees are prevented from working for personal reasons beyond their control, the employer is obliged by statute to pay them during their absence for a "limited" period. (See Pay for employees not at work)