According to Velocity Global's employment agreement template, when is the salary due in Switzerland?

Salary in Switzerland is paid at the end of each month. Additionally, the 13th payment is made in December.

What date does the law specify salary must be paid in Switzerland?

According to the Swiss Code of Obligations (OR), the employer must pay the supported employee's salary at the end of the month. While shorter settlement dates may be agreed contractually, longer settlement dates are not allowed. An extension of the payroll period is only possible by a collective bargaining agreement or a standard employment agreement. In Switzerland, it is customary to pay wages on the 25th of the month.

How is salary calculated and what components does it consist of in Switzerland?

In Switzerland, the calculation of salary follows a structured approach on a 12-month basis. The components of the salary are:

• A pro-rata 13th-month salary, which is required by Swiss employment law.
• A home office allowance for supported employees who work from home. This allowance may either be included within the annual salary or given as an additional payment.
• Additional allowances or fringe benefits, which are also considered part of the salary.

Is there a legal obligation to pay salaries in the same month in Switzerland?

No, there is no legal obligation to pay salaries in the same month in Switzerland.

How many salary payments are made per year in Switzerland?

In Switzerland, salary payments are made either 12 or 13 times per year, depending on the employment agreement.

Is salary payment monthly and is payment standard at the end of the month in Switzerland?

In Switzerland, salary must be paid on a monthly basis at the end of the month.

Should the employment agreement specify salary in monthly or annual amounts in Switzerland?

In Switzerland, the employment agreement template includes both the annual base salary and the monthly salary.

What tax and social security obligations do employees have in Switzerland?

In Switzerland, taxable employment income encompasses all benefits derived from an employment agreement, whether in cash or in kind. This includes:

• Salary
• Bonuses
• Commissions
• Overseas adjustments
• Cost of living allowances
• Tax reimbursements
• Private use of a company car
• Housing allowances

Switzerland's federal income tax is applied on a progressive scale, with rates ranging from 0% to 13.2%.

What are the details of the statutory bonuses and 13th/14th-month salary in Switzerland, including the local name and payment schedule?

In Switzerland, the 13th-month salary, locally referred to as the "13th month," is a common practice where employers provide a bonus equivalent to one month's salary towards the end of the calendar year. This, however, is not a statutory requirement. According to the rules of Velocity Global Switzerland's Collective Bargaining Agreement (CBA), the 13th-month salary is part of our practice and is calculated by dividing the annual salary by 13.

What is the minimum wage information in Switzerland?

In Switzerland, there is no national minimum wage mandated by law. Instead, minimum wages are determined through collective bargaining agreements (CBA). Supported employees in Switzerland are covered by the CBA for Staff Leasing. The minimum wage under this CBA, which applies to Velocity Global Switzerland, varies based on the qualifications of the employee and is updated annually in January.