Work conditions in Switzerland
The Active Population in Figures
|
2018 | 2019 | 2020 |
Labour Force |
4,953,968 | 4,965,077 | 4,959,300 |
Source:
International Labour Organization, ILOSTAT database
|
2017 | 2018 | 2019 |
Total activity rate |
83.96% | 84.17% | 84.21% |
Men activity rate |
88.50% | 88.39% | 88.24% |
Women activity rate |
79.34% | 79.87% | 80.10% |
Source:
International Labour Organization, ILOSTAT database
Working Conditions
- Legal Weekly Duration
-
45 hours for technicians and white collar employees; 50 hours for other employees (e.g. building, industry and agriculture).
- Retirement Age
-
65 years
- Working Contracts
-
Legal clauses regulate employment contracts and, to a lesser degree, collective agreements and individual negotiations. Under Swiss law, foreign citizens need a residence permit and a work permit to be employed in the country. They are granted at the cantonal level (quotas apply) and approved at the federal level.
The terms of employment contracts are rigid. The legal regime governing the employment relationship in Switzerland is generally more liberal and favourable towards the employer than in many other countries. Permission from the competent authority is needed for the appointment of a foreign employee and the requirements relating to the nationality of employees depend on the type of the company. In case of a stock company, the majority of the members of the board of directors must have Swiss or EU/EFTA country citizenship and must be domiciled in Switzerland, whereas for any other type of company there are no similar restrictions.
- Labour Laws
-
Doing Business: Switzerland, to obtain a summary of labour regulations that apply to local enterprises
Cost of Labour
- Minimum Wage
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No national minimum wage exists, but several cantons have adopted their own minimal wage. For example, minimal wage stands at CHF 20.08 per hour in Neuchâtel, CHF 20.28 per hour in Jura and CHF 23.14 per hour in Geneva. The majority of the voluntary collective bargaining agreements contain clauses on minimum compensation, which vary according to the sector and the experience of the worker.
- Average Wage
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Wages in Switzerland are among the highest in the world. According to the latest figures published by the Federal Statistical Office, in 2020 the gross monthly wage averaged CHF 6,665.
- Social Contributions
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Social Security Contributions Paid By Employers: • Old-age, survivors’, and disability insurance (5.3%)
• Unemployment insurance/supplementary unemployment insurance (1.1% / 0.5%)
• Family compensation fund (1% to 3%)
• Occupational accident insurance (0.17% to 13.5%)
• Occupational pension scheme (2nd pillar) (contributions depend on pension plan; the employee’s share is usually half of the total contribution, where the employer bears the other half).
Social Security Contributions Paid By Employees: • Old-age, survivors’, and disability insurance (5.3%)
• Unemployment insurance/supplementary unemployment insurance (1.1% / 0.5%)
• Non-occupational accident insurance (1% to 4%)
• Occupational pension scheme (2nd pillar) (contributions depend on pension plan; the employee’s share is usually half of the total contribution, where the employer bears the other half).
• Medical insurance (depending on coverage, private insurance)
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Latest Update: July 2024