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WAGES

Germany under fire for minimum wage law

The European Commission launched legal action against Germany on Tuesday, accusing the government of illegally applying the national minimum wage to a number of trucking and haulage companies from Austria, Poland and Hungary.

Germany under fire for minimum wage law
Long distance truck driver. Photo: Adrian Pingstone/Wikimedia

The EU's powerful regulator objects to the application of a national minimum wage to lorry drivers passing through the country even just for a few hours and the substantial paperwork associated with that.

“Whilst fully supporting the introduction of a minimum wage in Germany, the Commission considers that the application of the Minimum Wage Act to all transport operations which touch German territory restricts the freedom to provide services and the free movement of goods in a disproportionate manner,” the Commission said in a statement.

Germany introduced a national minimum wage of 8.50 euros ($9) an hour on January 1, even for foreign truck drivers simply passing through to other destinations.

The companies affected in March asked the Commission to examine whether applying the minimum wage in this way is compatible with European law.

The launch of the case in Brussels is the first step in a procedure that can end with hefty fines for Germany, which has two months to respond.

“The application of German measures to transit and certain international transport operations can in the Commission's view not be justified, as it creates disproportionate administrative barriers which prevent the internal market from functioning properly,” it said.

The Commission said it believed that “more proportionate measures” existed to safeguard these workers while still “allowing for free movement of services and goods.”

Germany is the only European country that includes transit workers in the minimum wage. Berlin argues the policy was needed to stave off wage dumping.

Given the protests from foreign companies, Berlin agreed to a temporary suspension for foreign road haulage companies until the EU's rules on the issue can be clarified.

Germany's new measure required a Polish truck driver who is heading to Spain to be paid at 8.50 euros per hour from the moment the driver crosses the German border, before reverting to the wage paid in the driver's home country on leaving German soil.

The driver's employer also faced administrative paperwork under the measure and a fine if the drivers were not paid accordingly.

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WAGES

Swiss salaries: How much do people earn in Switzerland?

Workers in Switzerland are among the best paid in the world, but the cost of living here is one of the highest as well. The Local looks at how much people in various professions earn in this wealthy but expensive country.

Swiss salaries: How much do people earn in Switzerland?
Workers in Zurich, here in the city's business district, are among the highest earners in Switzerland. Photo by AFP

Swiss wages published by the Federal Statistical Office (OFS) shed light on some interesting facts, including on how much foreign workers earn compared to their Swiss counterparts.

According to FSO’s Swiss Earnings Structure Survey of 2018, the last year for which official statistics are available, the median monthly wage in Switzerland is 6,538 francs.

The salaries have not dramatically changed since then.

The study shows that the lowest-paid 10 percent of employees earned less than 4,302 francs per month, while the highest-paid 10 percent earned nearly 11,700 a month.

Gender-based wage disparities

Not surprisingly, the survey shows wage disparities between men and women across all professions, levels of education, age groups, and private and public sectors.

On average, women earn 11.5 percent less than men working in the same positions, though the gap has steadily decreased in the past decade.

Another disparity: Swiss versus foreign workers

FSO figures also show the divergence in wages between the Swiss and foreigners with different work permits.

As the chart below indicates, while a Swiss man earns 7,500 francs a month, a Swiss woman is paid just over 6,000 for the same job.

EXPLAINED: How much do foreign workers in Switzerland earn?

Now let’s look at the foreign workforce.

A man with a short-term L permit earns about 5,000 francs, while a woman holding the same permit will make a little over 4,000.

The pay is a bit higher for B permit holders: 5,700 francs for men and 5,000 for women.

Cross-border men workers with the G permit earn roughly the same as C permit holders — about 6,200 a month. The women in those groups, however, don’t have the same salaries: about 5,800 for border workers and 5,000 for permanent residents.

This could be because the former category has the skills specifically needed by Switzerland’s labour market.

So what are the average Swiss salaries for various professions?

First, keep in mind that wages vary from one canton to another. Generally speaking, people earn more in Geneva and Zurich than in Ticino, but the cost of living in these regions is correspondingly higher or lower.

READ MORE: Geneva voters approve ‘world’s highest’ minimum wage

Typically, professionals like doctors, lawyers, or engineers, as well as people working in information technology, the pharmaceutical industry, and bank and insurance sectors have the highest salaries.

On the other hand, unskilled workers are ones who are lowest paid, often referred to as ‘working poor’. 

Lohncomputer, a platform for European citizens who want to or already work in Switzerland, lists median monthly wage estimates culled from various salary surveys.

Here are just a few examples:

  • Lawyer: 9,300 francs
  • Accountant: 8,125 francs
  • Teacher: 7,292 francs
  • Bank employee: 6,750
  • Architect: 6,250 francs
  • Nurse : 5,667 francs
  • Carpenter: 5,150 francs
  • Hairdresser: 4,375 francs

Other salary estimates can be found here.

If you’d like to find the expected average wage in your industry, check this link.

How does Swiss income compare with wages in other European countries?

With a median salary exceeding 96,000 francs annually, Switzerland’s workers have highest wages in Europe, according to a survey by an international consultancy firm Willis Towers Watson. 

The second-highest is Denmark, with just over 63,000, followed by Norway (almost 60,000).

Out of 18 countries surveyed, Portuguese and Greek workers fared the worst, with average yearly salaries of 22,630 and 25,132, respectively.

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