Payroll statement: Components and meaning

Anyone who works also receives a salary at the end of the month. Employees receive a payroll statement for this purpose. Alternative names for this are pay slip or wage slip. This is a document that shows in detail how an employee's salary is made up over a certain period of time. At the end of each month, employees of a company therefore have an official document in their hands that breaks down their salary.

Why do payroll statements exist?

A salary in Switzerland is not just the hourly or monthly wage that an employee is paid. The net salary that remains at the end of the month is calculated on the basis of the gross salary. Certain amounts (e.g. bonuses and other special payments) are added to this and others are deducted (e.g. social security deductions). The payroll statement provides information on how the net wage is calculated from the gross wage and the other supplements and deductions. The additions and deductions are listed in detail in the payroll statement. Employees can thus see how their salary was calculated in the month in question.

However, a payroll statement is also an important tool for employers. After all, they can use it to record how much was paid out to which employees each month. It is therefore essential that all payments are entered correctly and in detail. Every single deduction and deduction should be clearly itemised. If this is not the case, misunderstandings can arise. Incorrect or incomplete payroll statements can have a negative impact on a company, particularly in the event of labour law disputes. Extra hours, holidays and other special payments in particular should therefore always be clearly stated.

A payroll statement lists all the components that have to do with an employee's salary. It breaks down exactly what the wage payment consists of and how the amount is calculated. In any case, a payroll statement should clearly show how high the gross wage is and how it is calculated. In the case of an hourly wage, the document should therefore contain the number of hours and the amount of the hourly wage.

Yes, employers in Switzerland are obliged under the Swiss Code of Obligations (CO) to regularly send their employees a payroll statement (Article 323b, paragraph 1 CO). As a rule, this is done at the same time as the salary is transferred. In most companies, this takes place at the end of the month. However, according to the law, other dates can also be set. This should then be stipulated in the standard or collective labour agreement (Article 323, paragraph 1 CO). The provision of a payroll statement is one of the mandatory provisions of Article 362 CO. This means that this provision may only be changed in favour of the employee - subject to their consent. A labour law attorney can advise you in detail in a consultation and, if desired, also support you in the further process.

In principle, the payroll statement is provided by the employer. From a legal perspective, there are no specific regulations regarding who is authorised or required to prepare the payroll statements. Any person is therefore authorised to prepare payroll statements on behalf of the company and send them to employees. Employers in small companies, where payroll staments are simpler, often do this themselves. In large corporations, on the other hand, there is usually an entire department that handles all matters relating to accounting. An external service provider is also an option for companies that want to outsource bookkeeping and payroll statements.

Preparation of payroll statements - what you should pay attention to

The most important thing is that the payroll is complete and that everything has been accounted for correctly. It is particularly worthwhile for small companies with fewer employees to create a template that is completed at the end of each month. In large companies, on the other hand, manual entry is too time-consuming and prone to errors. Many companies use software for their payroll statements. Although such programmes are subject to a charge, they make things easier. Automated payroll statements can also minimise the risk of errors.

Digital payroll statements

Even though payroll statements in paper form are still frequently used, the digital version is on the rise. Digital or electronic payroll statements are a practical and more sustainable alternative to the classic letter. Thanks to secure options, users do not need to worry about their personal data when sending payroll statements by e-mail (e.g. IncaMail from Swiss Post). Alternatively, employers can use the company intranet to provide payroll statements.