Switzerland: Pay and benefits

Updating author: Thomas Kälin, MLL Legal Ltd (MLL)

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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 because of sickness, the employer is obliged by statute to pay them during their absence for a "limited" period. (See Sick pay)