Co-funded by the European Union

Switzerland: minimum wage in Geneva now amounts to monthly CHF4210 (USD4768) gross per employee

  • On 27 September 2020, the citizens of the Geneva Canton agreed to modify the Law on Inspection and Labour Relations, by the institution of a mandatory minimum hourly wage.
  • This means that the monthly minimum wage will amount to CHF4210 gross per employee (42 hours weekly).

The changes to the legislation were operational as of 1st November 2020 and required the employers a prompt adjustment. In case of violation the employer can be fined with CHF30,000 (approximately USD 34,000).

Such a reform is challenging as it can create a system where an employee with some years of experience can now receive the same salary of a newly employed person. Moreover,  it can negatively impact sectors with lower earnings vis-à-vis more economically successful sectors, thus impeding the social partners to determine themselves the minimum, as before. It has also repercussions on the employees themselves as they will have to pay their taxes accordingly and may be limiting their access to certain social allowances that are calibrate on the past average minimum wage.

In its position paper on all the items subject to referendum, FER underlined: “By establishing a single state minimum wage of 23 francs an hour, IN 173 brushes aside the long tradition of social dialogue which has enabled our canton to offer particularly attractive working conditions and, above all, in line with the reality of the sectors. Not only does this text threaten companies with low added value and the jobs linked to them, but the salary it proposes could also become a general reference that would pull salaries towards the bottom, as shown in France”.