FOR MEMBERS

EXPLAINED: What is the 13th salary in Switzerland and how is it calculated?

EXPLAINED: What is the 13th salary in Switzerland and how is it calculated?
Most employees in Switzerland receive the 13th salary. Photo: Fabrice Coffrini/AFP
Most companies in Switzerland pay wages to their employees based on a 13-month system. How does this work?

Swiss salaries are among the highest in the world, attracting many workers from abroad, even though the cost of living in Switzerland is high as well.

The 13-salary system is not part of the Swiss labour law, as it is in some countries, it is more a matter of custom. However, if it is part of the employment contract, then the company is obligated to pay it. Currently, nine out of 10 employers do so.

This is what you should know.

The 13th salary is not a bonus

When you get hired by a company that uses the 13-salary system, it means that your annual earnings are calculated on, and paid out in,13 instalments rather than 12.

Some companies don’t pay a 13th month’s salary but will pay higher monthly wages instead.

Your annual income will still be the same, it just depends on how it is divided – by 12 or 13.

Why not just pay 12 salaries?

The idea behind this system is that the 13th instalment paid out in December (in effect, two months’ salary) will help pay for Christmas expenses and other end-of-year bills.

If half of the 13th salary is paid in July, it is to help bankroll summer vacation.

READ MORE: What are the best and worst paid jobs in Switzerland?

Are you entitled to 13th salary if you miss work on certain days?

If the absence is justifiable and limited in time, then yes.

For instance, if you miss work due to illness, accident, pregnancy or maternity, military service, death in the family, or other important reasons defined by Swiss employment law, you are still entitled to compensation.

What if you don’t work a full year or are paid on an hourly basis?

If you start employment or quit your job during the calendar year, the 13th month payment is paid on a pro-rata basis, in proportion to the months spent in the company.  

As for hourly workers who are also entitled to a 13th salary, they are usually paid monthly. The hourly rate is then increased by 8.33 percent.

What about bonuses?

Bonuses are independent of the 13th salary.  

Swiss law doesn’t contain any provision that specifically deals with the bonus, which may consist of money, shares, stock options in the company, or other perks. It depends entirely on the goodwill of the employer.

Typically, this should be addressed in the employment contract.

SALARIES IN SWITZERLAND: In which sectors have wages increased the most?

Here you can see how much workers in Switzerland earn on average.


Member comments

Become a Member to leave a comment.Or login here.