Switzerland, locally known as Suisse, stands out in Europe for its unique approach to minimum wages with no national standard. Instead, Swiss cantons establish their own rates. Recent changes in Geneva and discussions in Basel signal ongoing developments in Swiss wage policies, making this topic particularly relevant for immigrants considering work in Switzerland.
At Remitly, we’re committed to providing immigrants with the information they need to thrive, so we’ve created this guide to help you understand Switzerland’s minimum wage.
Table of contents
Current minimum wage in Switzerland
Today, Switzerland operates without a federal minimum wage, with the new minimum wage regulation varying by canton and collective agreements. Examples of a cantonal monthly average salary include:
| Region | Minimum Wage |
|---|---|
| Geneva | Twenty-three Swiss francs (CHF 23) per hour, which is the highest in Switzerland (approximately CHF 4,086 monthly) |
| Neuchâtel and Jura | CHF 20 per hour |
| Ticino | CHF 19 per hour |
| Basel | Considering the implementation of CHF 21 per hour |
In a 2014 referendum, Swiss voters rejected a proposal for a national minimum wage of CHF 22 per hour by 76.3%. Voters sided with business leaders and government officials who argued that a federal minimum wage of CHF would increase unemployment, hurt small businesses, and weaken Switzerland’s economic competitiveness.
Many voters believed wage negotiations should remain between employers and unions through collective agreements, which have historically served Swiss workers well.
While trade unions advocate for federal standards, employer associations maintain that canton-level decisions and collective agreements better serve local economic conditions.
This system creates a flexible framework where many sectors establish fair wages through direct negotiations between employers and unions.
Cost of living in Switzerland
Like minimal wages, living costs in Switzerland vary significantly by region, with major cities ranking among the world’s most expensive. Zurich and Geneva consistently appear in the top 10 global lists for their high cost of living. Below is how far minimum wages can stretch in different locations.
- Monthly housing costs:
- Zurich/Geneva: One-bedroom apartments range from CHF 2,000-2,500
- Bern/Lausanne: CHF 1,500-1,800
- Utilities: CHF 150-250
- Mandatory house insurance: CHF 100-200
- Security deposit: This is typically three months’ rent upfront
- Essential monthly expenses:
- Basic groceries: CHF 400-600
- Public transportation: CHF 70-100
- Healthcare insurance: CHF 300-400
- Phone/internet: CHF 50-100
- Basic leisure activities: CHF 200-300
Full-time workers living in Geneva and earning the minimum wage (CHF 4,086 monthly salary) will face significant budgeting challenges.
Following tax deductions and mandatory social security contributions, the take-home pay may not fully cover living expenses in high-demand urban areas.
A comfortable lifestyle in Zurich or Geneva typically requires between CHF 4,500 and 5,000 monthly. More affordable options exist in smaller cities and rural areas like Bern, Lucerne, and Winterthur.
These locations offer better cost-to-wage ratios, not to mention between 20-30% lower living expenses than in Geneva or Zurich.
Rural areas provide the most affordable housing and daily expenses, but job opportunities tend to concentrate in urban centers, especially for immigrants. Remote work arrangements offer a solution, allowing workers to earn city wages while living in more affordable regions.
Swiss wage variations
Swiss wages vary significantly across linguistic regions and industries, influenced by local economic conditions, cost of living, and collective bargaining agreements. Here’s how the variations break down:
- Regional differences:
- French-speaking: Highest minimum wages in cities like Geneva and Neuchâtel
- Italian-speaking: Lower statutory minimums in cities like Ticino
- German-speaking: Rely primarily on collective agreements in cities like Basel
- Urban vs. rural areas: City wages are typically between 15-20% higher
- Industry-specific rates:
- Hospitality: Between CHF 19 and 21 hourly through collective agreements
- Construction: Between CHF 23 and 25 hourly baseline
- Retail: Between CHF 20 and 22hourly, varying by canton
- Manufacturing: Between CHF 21 and 24 hourly baseline
- Agriculture: Between CHF 16 and 18 hourly
- Special categories:
- Internships: Internees may have lower regulated rates
- Apprenticeships: Progressive monthly salaries go between CHF 750 and 1,000
- Seasonal workers: They are subject to industry-specific agreements
- Cross-border workers: People who commute to Switzerland for work have the same minimum rates as Swiss residents
Unlike other European countries, Switzerland doesn’t set different minimum wages based on age, and under Swiss law, there is gender equality in salaries.
Although, there are still traces of a gender pay gap throughout the country. Education level, professional certifications, and years of experience significantly influence earning potential.
Collective agreements often include detailed wage progression scales based on these factors.
Swiss wages compared to neighboring countries
Minimum hourly wages in Swiss cantons significantly exceed those of neighboring European nations. However, purchasing power tells a more complex story. Here’s how hourly minimums compare:
- France: €11.27 (approx. CHF 11)
- Germany: €12 (approx. CHF 11.70)
- Italy: No national hourly minimum wage
- Luxembourg: Highest in the EU at €13.37 (approx. CHF 13)
- Austria: €10.50 average (approx. CHF 10.25)
Meanwhile, Geneva’s minimum wage of CHF 23 appears dramatically higher. However, Swiss living costs typically exceed neighboring countries between 30-50%:
- Housing costs 40% more than in France
- Groceries cost 60% more than Germany
- Healthcare premiums run 45% higher than Austria
- Restaurant prices double those in Italy
After accounting for Switzerland’s higher living costs and mandatory deductions, the actual purchasing power of Swiss minimum wages typically provides a standard of living about 10-15% higher than neighboring countries.
Legal rights and Swiss employment tips
Swiss employment law ensures comprehensive worker protections through mandatory written contracts for permanent positions. Every contract must specify the gross salary in CHF and include:
- Social Security contributions split between employer and employee
- Four weeks minimum paid holiday annually
- Full salary during sick leave (duration varies by canton)
- Protection against unfair dismissal
- Equal pay rights regardless of nationality
Collective agreements typically enhance these fundamental rights with additional benefits. The State Secretariat for Economic Affairs (SECO) monitors compliance and provides free guidance for workers through cantonal labor offices.
Find more information
For current hourly minimum wage information and employment rights in Switzerland, consult the State Secretariat for Economic Affairs (SECO), cantonal labor offices, and the Federal Statistical Office.
These resources provide comprehensive data about wages, working conditions, and worker rights across all Swiss regions. Trade unions also offer valuable guidance for specific industries.
FAQs
Is there a national minimum wage in Switzerland?
No, Switzerland doesn’t have a national minimum wage. Instead, individual cantons set their own rates, with Geneva offering the highest at CHF 23 per hour. Many sectors rely on collective agreements between employers and unions to establish wages.
How much do I need to earn to live comfortably in Swiss cities?
A comfortable lifestyle in major cities like Zurich or Geneva typically requires CHF 4,500-5,000 monthly. Living costs are 20-30% lower in smaller cities like Bern or Lucerne, offering better cost-to-wage ratios.
Unlike other European countries, Swiss minimum wages don’t vary by age. However, education level, professional certifications, and years of experience significantly influence earning potential through collective agreement wage scales.
Swiss law requires written contracts specifying gross salary in CHF. It guarantees four weeks’ minimum paid holiday, sick leave coverage, protection against unfair dismissal, and equal pay rights regardless of nationality.
