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Switzerland - Minimum Wages - 2012


SOURCES


Name of Act

Code of Obligations of 30 March 1911, as last amended on 3 October 2008

Name of Act

Federal Law on Home Work of 20 March 1981, as last amended on 20 March 2008

Name of Act

Federal Law allowing for the extension of the scope of application of collective agreements, dated 28 September 1956, as amended up to 17 December 2004

Other source used

Swiss Office of Statistics: Summary regarding wage agreements in collective bargaining agreements until 2011
Summary of collective wage agreements until 2011 Summary of collective wage agreements until 2011

MINIMUM WAGE FIXING


Procedure


Procedure in general

There is no national minimum wage rate in Switzerland, minimum wage rates are set in: 1) collective agreements; or 2) standard individual contracts.

Standard individual contracts as well as the collective agreements can either apply to a whole specific sector, to a single company, to a specific region (canton) or they can apply to the whole country.
Code of Obligations §356, 359, 359a

Government decides after tripartite or bipartite body discussions/recommendations

A standard individual contract is a contract that includes provisions regarding formation, content and termination for different kinds employment contracts. The provisions of the standard individual contract apply to all employment contracts in the sector they cover if not agreed otherwise. If the standard individual contract applies to one canton it is enacted by the canton, if it applies to several cantons it is enacted by the Swiss Federal Council. It is not possible to conclude an individual contract with a worker that is less advantageous than any standard individual contract that applies to the worker, unless agreed otherwise.

Every canton and the federation implement a tripartite commission which monitor the employment market.

If the customary wages in a geographic area, a certain sector or occupation is persistantly under the average wage and if there is no collective agreement which is extended to this area the tripartite commission can ask the competent authority to enact a standard individual contract including a minimum wage. If the conditions of work in a sector changes the tripartite commission can ask the competent authority to change the standard individual contract in place.
Code of Obligations §359, 359a, 360, 360b

Minimum wage set through decentralized collective bargaining

A collective bargaining agreement is an agreement between employer or employers`assiciations and an employees`association which includes general provisions regarding the content of employment contracts. The provisions of the collective bargaining agreement are binding to the employment contracts they cover unless the collective agreement provides allows a deviation.

Collective agreements between employers and employees organizations may be extended to a whole sector or occupation if all the parties to the agreement request such an extension. The employers and employees, parties to the collective agreement, must make up the majority of the employers and employees included within the sector or occupation to which the agreement is extended.

Every canton and the federation implement a tripartite commission which monitor the employment market.

In the event that the tripartite commission finds that minimum wages in a certain sector are persistently low and exploitative, the commission may, with the agreement of the parties, request that the relevant collective agreement be extended. The employers and employees, party to the agreement, must represent at least 50% of the sector to which the agreement is extended.
Code of Obligations §356, 357, 360a
Federal Law Regarding Collective Agreements §1, 2, 3, 4

Swiss Office of Statistics: Summary regarding collective wage agreements until 2011

Criteria


Other provisions

Minimum wages may not be opposite to the interests of the population or other industries. They have to take the regional and operational diversity of different industries into consideration.
Code of Obligations §360 a

Coverage


Scope

Only workers covered by a collective agreement or a standard contract are subject to a minimum wage.

Specific minimum wage rates


» Specific minimum wage by occupation

The Swiss Office of Statistics published an overview about different minimum wages in collective agreements covering different occupations.

» Specific minimum wage by sector

Various collective agreements have been extended to a whole sector.
Swiss Department of Economics, Overview extended collective agreements Swiss Department of Economics, Overview extended collective agreements

» Specific minimum wage by region

Different collective agreements exist in different regions which fix different minimum wages.

» Minimum wage levels for specific categories of workers


» Youth

Many collective agreements set minimum wage rates for youth workers and apprentices that are lower than the rates for adults.

» Other categories

In accordance with the Code of Obligations, each canton has established a standard contract setting forth the minimum wages applicable to agricultural workers and domestic workers.
A home worker is entitled to the wage rates applicable to workers who carry out the same work in the enterprise. This also applies to minimum wage rates.
Code of Obligations § 359
Federal Law on Home Work § 4

Level


Minimum wage level(s) in national currency

In Switzerland there exists a wide spectrum of collective agreements for minimum wages in the manufacturing sector. No general level could be identified. The attached table gives an overview about the existing collective agreements that were extended to a whole sector.

In-kind allowances

As determined by collective agreement/standard form contract.

Rate of payment


» Hourly

As determined by collective agreement/standard form contract.

Scheduled frequency of adjustment

As determined by collective agreement/standard form contract, generally every autumn.

Enforcement mechanisms


Fines in national currency for non-respect of legislation

A collective agreement may set forth the sanctions to be applied in the event the provisions of the collective agreement are not adhered to.

A fine has to be paid if the provisions of the Home Work Act are violated.
Code of Obligations §356
Federal Law on Home Work §12

Results generated on: 28th March 2024 at 11:48:13.
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