The 13th month's salary is now an integral part of most employment contracts in Switzerland. It usually amounts to an average monthly salary. However, there is no legal entitlement to it and the exact regulations can therefore depend on the respective contract. Below you will find the legal basis and the most important information about the 13th monthly salary in Switzerland.
What is the legal basis for the 13th month's salary?
In Switzerland, the 13th month's salary is not prescribed by law. Companies are therefore not obliged to pay it. It is a voluntary benefit offered by the employer. Nevertheless, it is customary in Switzerland to pay a 13th month's salary. When this is paid and how much it is is regulated in the employment contract. As the 13th month's salary is considered part of the salary and must therefore be contractually regulated, we will take a closer look at the legal basis for these issues below.
Legal basis for wages
The obligations of a company with regard to wages are generally governed by the Federal Act on the Supplementation of the Swiss Code of Obligations (CO). According to Article 322 CO, a company is obliged to pay the employee "the wage that is agreed or customary or determined by a standard employment contract or collective employment contract". This salary is paid in return for the labour provided to the company and must be regulated in an employment contract.
Legal basis for the employment contract
With regard to the employment contract, a general distinction can be made between the individual employment contract (IEC), the collective employment contract (CEC) and the standard employment contract (STC). The individual employment contract (Article 319 CO) is negotiated individually between a company and an employee. The collective employment contract (Article 356 CO) is negotiated between employers' associations and employees' associations (trade unions) and creates uniform working conditions for people in a specific occupational group or company. If there is no CEC for an industry, the Confederation and the cantons can issue a standard employment contract (Article 359 CO).
If a collective or standard employment contract applies to an employment relationship, it depends on this whether a 13th month's salary is paid. However, it is provided for in many contracts. If an individual employment contract is agreed with the company, the question of the 13th monthly salary is a matter for negotiation, as freedom of contract prevails in Switzerland according to Article 19 CO. This means that the content of an individual employment contract can be freely designed - within the legal framework, of course. As mentioned above, there is no legal entitlement to a 13th month's salary, but it is not unusual to agree this in individual employment contracts.
Legal basis for the 13th monthly salary as part of the salary
The 13th month's salary is considered part of the salary. This means on the one hand that it must also be agreed in the employment contract, but on the other hand that it is - as a fixed component of the salary - independent of the employee's performance and the company's success. If the 13th monthly salary is no longer to be paid, an amendment to the employment contract is mandatory, for which both parties must agree in accordance with Article 115 CO. The 13th monthly salary must therefore also be distinguished from the bonus (Article 322d CO), which the company can pay at its own discretion.
However, it must also be mentioned in this context that in some cases a contractual amendment can also be made tacitly. For example, if the 13th monthly salary is not part of the employment contract but is regularly paid to the employees, it may be the case that the company has made a tacit contractual amendment in favour of the employees. The employer would then still be obliged to pay the 13th month's salary.
Special case: Employment contracts with hourly wages are a special case. These do not usually provide for a 13th month's pay. Depending on the agreement, however, it may be integrated into the hourly wage, whereby it is not usually shown separately, but the hourly wage is slightly higher in this case.
How much is the 13th month's salary?
Although it is not permitted to attach conditions to the payment or the amount of the 13th month's salary, the contractual provision in this regard can be freely designed - provided it remains within the limits of the law. Therefore, the 13th month's salary can theoretically vary depending on the company.
The employment contract can also stipulate that it is only paid from a certain point in time, for example after the end of the probationary period or after a certain length of service with the company. The amount of the 13th month's salary is therefore regulated in the respective employment contract. In practice, however, it is common for it to amount to an average monthly salary, unless otherwise agreed.
The 13th month's salary is therefore usually calculated on the basis of the standard salary, whereby - depending on the contractual agreement - it is usually supplemented by a number of factors. For example, employees are also entitled to a pro rata 13th month's salary during paid holidays, leave of absence and absence through no fault of their own. Whether paid overtime, bonus payments etc. are also included depends on the respective contractual agreement. If, on the other hand, the employee is not entitled to a salary for a certain period (e.g. due to unpaid leave or prolonged incapacity to work), this reduces the annual salary and, accordingly, usually also the 13th month's salary.
When is the 13th month's salary paid out?
The 13th monthly salary is part of the salary and differs from the regular monthly salary only in its due date. It is usually paid out in November or December. However, this depends on the respective employment contract, which, as mentioned, can be freely agreed. It is therefore also conceivable to pay the 13th monthly salary at a different time or to split it over two months, for example.
Entitlement in the event of premature termination of employment?
If a 13th month's salary has been agreed in the employment contract, employees are entitled to a pro rata share of this salary, even if they join or leave the company before or after it falls due. A separate contractual provision is not necessary in this case.
Example: Let us assume that an employee receives a monthly salary of CHF 4,000 according to her employment contract and is entitled to a 13th month's salary, which is paid out in December. She joins the company on 1 February and leaves on 31 October, i.e. before the 13th month's salary is due. In this case, she would be entitled to the 13th month's salary on a pro rata basis. As she only worked for the company for nine months, her total gross salary is 9 x CHF 4,000, which corresponds to CHF 36,000. The 13th month's salary is 1/12 of the total gross salary, i.e. CHF 3,000.
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FAQ: 13th monthly salary
No, there is no legal entitlement to the 13th month's salary in Switzerland. However, it is quite common to pay this. If a 13th month's salary is agreed in the employment contract, the company must pay this to the employee unconditionally.
The relevant employment contract determines whether or not you are entitled to a 13th month's salary. If you are not sure whether you are entitled to this, check your employment contract.
As the amount of the 13th month's salary is usually linked to the amount of the regular monthly or annual salary, it can be lower if the regular salary is also reduced, for example due to unpaid leave or long-term incapacity to work. At the same time, however, the 13th monthly salary is also higher if the salary is increased. The suspension of the 13th month's salary, on the other hand, is not permitted if this has been contractually agreed.
No, the 13th month's salary is not a bonus, but is regarded as an integral part of the regular salary. It must therefore be paid unconditionally to employees. The bonus, on the other hand, can be organised by the company at its own discretion and can also be linked to factors such as the company's success.
Usually, and unless otherwise agreed, the 13th month's salary corresponds to an average monthly salary or one twelfth of the regular gross annual salary. However, as freedom of contract generally applies in Switzerland, an individual employment contract can be freely structured within the framework of the law. This means that the 13th monthly salary can theoretically be higher or lower. The respective employment contract is always decisive.
The 13th month's salary is usually paid at the end of the year, in November or December. Here too, however, a different agreement can be made in the employment contract. For example, a different due date could be specified or it could be agreed that half of the 13th month's salary is paid twice a year.
As the 13th monthly salary is considered a fixed component of the salary, it is not legally permitted to attach conditions to it. For example, it may not be dependent on the employee's performance or the success of the company.