Wage & employment contract

The employment contract sets out the working conditions as well as the rights and obligations for both parties. At least the following points are included:

• your own name and the name of your employer
• the date on which the employment relationship begins
• the future function in the company
• the salary and possible wage supplements
• the weekly working hours
• the number of vacation days / Ferien
• the duration of the Probezeit
• the notice period
• the end date for a fixed-term employment contract
• special regulations such as a non-competition clause or the regulation of overtime

Special rules apply to certain sectors, which are laid down in a national or regional Gesamtarbeitsvertrag (GAV)

A Gesamtarbeitsvertrag (GAV) is a contract concluded between employers' associations and employee associations/trade unions.

It sets out the minimum requirements, such as:

• the minimum wage
• 13. Monthly salary and compensation
• Continued payment of wages in the event of inability due to illness, maternity and military service
• Number of vacation days / Ferien
• Working time regulations
• Extension of protection against dismissal

During the Probezeit , a notice period of 7 calendar days applies to you and to the employer. However, a shorter or longer period can also be agreed in the employment contract.

You can terminate the employment contract at any time, provided that the employer receives the notice of termination on the last day of the Probezeit at the latest. You do not have to give reasons for the termination. 

Your employment contract specifies how many hours per week you have to work. On average, you work 42 hours per week in Switzerland. 

The law provides for a maximum working time per week:

• 45 hours in industrial companies as well as for office staff, technical employees and sales staff in large retail companies 
• 50 hours for everyone else

If you work more than the contractually stipulated number of hours, but do not exceed the maximum weekly working hours, these additional hours are considered overtime. 

Under what conditions do you have to work overtime?

Your employer may require you to work overtime if:

• the overtime is necessary.
  
• the overtime is not excessively physically and mentally demanding.
  
• working hours and daily rest periods are observed.

Even if you decide for yourself to work overtime, you must comply with these rules.

How is overtime compensated?

• Overtime must be compensated with a wage surcharge of 25%.

• However, overtime can also be compensated for by time off of at least the same duration. This requires your consent and a written agreement between you and your employer.

• Executives with a management contract are usually not entitled to a wage supplement. This is regulated in the employment contract.

If you are ill or injured, you will continue to receive your salary for a certain period of time.

In case of illness:

If you are ill or if you do not feel well during pregnancy, you must inform your employer as soon as possible.

As a rule, you must submit a medical certificate of incapacity for work from the 3rd day of absence. Ask your employer which regulation applies to you.

If you are only able to work a reduced workload due to illness or pregnancy, the doctor must state the maximum number of hours you can work per day or per week on the certificate of incapacity for work.

You will continue to receive your salary for a certain period of time.

In the event of an accident / injury, the following applies:

Inform your employer of your injury/accident as soon as possible, regardless of whether it happened during working hours or during leisure time.

The employer must inform his insurance company immediately. They will send you a form in which you and your doctor must provide information about the injury / accident and your state of health.

In Switzerland, employers insure their employees against the consequences of injuries caused by accidents. From the 3rd day after the accident / injury, you will receive a Taggeld equal to 80% of your salary.

The Taggeld is paid regardless of whether the accident occurred at work (occupational accident) or during leisure time (non-occupational accident).

The only exception: If you are employed and your weekly working hours are less than 8 hours, then only accidents at work are insured.

Protection against dismissal: 

During the period in which you are on sick leave, your employer is not allowed to dismiss you. However, you can also submit your resignation yourself during a sick leave.

Both you and the employer have the right to terminate the employment relationship.

When terminating the job, certain conditions must be observed. It is stated in the employment contract if the termination must be in writing. If not, verbal termination is sufficient.

Period of notice

If you want to terminate the employment relationship, you must comply with the notice period agreed in the employment contract. If your employment contract or Gesamtarbeitsvertrag (GAV) does not contain a notice period, the following periods apply:

• during the probationary period at work: 7 calendar days
• in the 1st year of employment: 1 month, termination possible at the end of each month
• from the 2nd to the 9th year of employment: 2 months, at the end of each month
• from the 10th year of employment: 3 months, to the end of each month.

A fixed-term employment contract ends automatically on the agreed date. 

If you no longer have a new job after the notice period has expired, you must register as unemployed.

Protection against dismissal in the event of illness / injury / accident

In the event of illness or accident/injury, your employer may not dismiss you. In these cases, there is protection against dismissal:

• 30 days in the 1st year of employment
  
• 90 days from the 2nd - 5th year of employment
• 180 days from the 6th year of employment
• during pregnancy and in the 16 weeks after birth.

In all these cases, the employer will have to wait until you come back to work. Only then is termination permitted.

Important: You as an employee can also terminate your employment during a blocking period.

What happens in the event of illness or injury / accident after the employer has dismissed you?

If you become ill or have an injury / accident after being dismissed by the employer, the notice period is interrupted as long as you are absent due to illness or accident. The period continues to run as soon as you can return to work and is extended until the next possible termination date (for example, until the end of the month).

Please note: if you have terminated the employment relationship of your own accord, this blocking period does not apply.

When your employment ends, you will receive a certificate of employment or, usually, an Arbeitszeugnis . This will be useful to you when you apply for a new job.

The Arbeitszeugnis states:

• Start and end of the employment relationship
• Your function and activities on the job
• Your workload in percent
• an assessment of the quality of your work 
• an assessment of your behaviour 
• Reason for issuing the Arbeitszeugnis (dismissal, change of superior, new function, etc.)

If you want to know what the median salary is that is usually paid per month in Switzerland for a particular activity, you can use the national salary calculator . There are major differences between the cantons, so you may earn more in Zurich than in St.Gallen.

Minimum wage

In Switzerland, there is no minimum wage at the national level. The canton of St.Gallen has also not defined a minimum wage. To this end, trade unions and employers' associations have negotiated minimum wages in some sectors. These are included in the collective or standard employment contract.  

By international standards, however, Swiss wages are generally high, even though there is no national minimum wage.

Equal pay

The Federal Constitution and the Gender Equality Act require equal pay for men and women. This means that a woman and a man must receive the same salary for the same work.

Your employer will usually transfer the salary payment to your bank or postal account at the end of each month.

As a rule, a time wage is agreed. The salary is determined according to the hours worked:

• Hourly wage
• Daily wages
• Weekly pay
• Monthly wage

The piecework wage

The piecework wage is based directly on the service rendered (e.g. piecework). The faster you work, the higher the wage per unit of time.

As an employee, you will receive a pay slip at the end of the working month. You will see the details of your payslip.

The salary statement is a form intended for you as an employee. He provides information about the salary received. It contains all wage components, non-wage costs and social benefits.

Your employer is obliged to issue a salary statement every year. You will usually receive it at the end of January. If you have several jobs or have changed jobs in the course of a year, you will receive a salary statement for each position.

The salary statement is the most important document for the annual tax return.

Social insurance offers people living and working in Switzerland protection against social risks. 

Old-age and survivors' insurance AHV

In Switzerland, you are obliged to pay contributions to the AHV  until retirement age so that you can receive an old-age pension later. These contributions are paid half by you and half by your employer.

Disability insurance IV and loss of earnings compensation EO

In addition, you and your employer also pay a mandatory contribution for the IV  and EO .

The agreed salary is a gross wage. The mandatory social security contributions are deducted from this:

8.7% for AHV
1.4% for IV
0.5% for EO

10.6 % total

In addition to this 10.6%, there is also the contribution to unemployment insurance.

Your employer takes care of everything: he deducts half of your contributions (5.3%)  directly from your salary and transfers them to the compensation fund.

Example of a monthly pay slip

In Switzerland, everyone must be insured against accidents. Employers are obliged to insure all employees with accident insurance:

• If you are employed, you are registered with an accident insurance company through your employer. An insurance premium will be deducted from your salary. This also applies to people who work at home and to trainees.
  
• If you work less than 8 hours a week or are self-employed, you must take out accident insurance yourself. You can also take this out with your health insurance company. Check your health insurance policy.
  
• If you are registered as unemployed and receive unemployment benefits, you are automatically insured with Suva . The insurance premium is deducted from unemployment benefits.
  

Employees and self-employed persons can receive family allowances.

You must submit the application for family allowances at the following locations:

• as an employee: via your employer at the Familienausgleichskasse FAK
• as a self-employed person: at the Ausgleichskasse to which you are affiliated