Only a handful of Swiss cantons have introduced minimum wage regulations as a result of public votes. A move for the collective labour agreements to override these laws will be challenged at the ballot box.
Switzerland has no national minimum wage, and at this time, only five cantons – Geneva, Neuchâtel, Jura, Ticino, and Basel-City – have a minimum salary legislation.
The highest hourly rate is in Geneva, which is set to rise to 24.73 francs/hour in 2027. In Basel-City, it will increase to 22.50 francs, and in Ticino to 20.50.
The other two cantons have not yet set their minimum wages for next year; currently, they are 21.35 francs in Neuchâtel, and 21.40 in Jura.
These amounts, which apply predominantly to lowest-paid jobs like cleaning, hairdressing, or catering, are the least an employer can pay their workers. Most companies, however, pay more than the statuary minimum.
But following a parliamentary vote in June, minimum wages outlined in collective labour agreements (CLAs) will have precedence over cantonal minimum wages – a decision which is highly criticised by trade unions and some political parties.
Don’t miss our journalists’ daily news roundup from Switzerland
But first: What are CLAs?
Many employees in Switzerland are covered by these contracts negotiated between unions and employers or employer organisations.
Generally, they cover a minimum wage for each type of work, regulations relating to work hours, payment of wages in the event of illness or maternity, vacation and days off, and protection against dismissal.
Other important employment-related matters are also subject to negotiations – for instance, pension fund regulations, early retirement, conflict resolution procedures, and funding of training.
CLAs can be sector-specific, taking into account the particular aspects of each branch, or employer-specific – for instance, large companies like Coop, Migros, and SWISS airline – have their own collective contracts in place.
All this is good for employees, so what’s the problem?
MPs want to pass a law under which the minimum pay outlined in a sector or employer-specific CLA would take precedence over minimum wages currently in place in the cantons.
Deputies believe that pay scales – including minimum wages – should be set in a flexible manner and be industry-specific rather than having the same set amount for all sectors.
They want standards that apply uniformly across Switzerland, instead of having different minimum wages in each canton.
This move is, however, stirring controversy.
Opponents of the proposed measure – trade unions, as well as left-wing and centre parties – are against the proposed change, arguing that standardised wages don’t reflect cantonal costs of living and may therefore not meet the needs of local residents.
Further, the new law “would be an attack on direct democracy and the will of the people”, opponents claim.
That’s because minimum wage laws currently in place had been enacted as a result of popular votes and can therefore not be nullified, they say.
What’s next?
Opponents have collected enough signatures on a petition – that is, more than 100,000 required by law – to challenge this proposal by bringing it to the ballot box.
The date for the referendum on this issue has not yet been set.
