In 2022, a committee composed of left-wing parties and trade unions submitted to the city council an initiative called “A wage to live,” which called for a minimum hourly wage of 23 francs per hour to be introduced in Zurich.

Municipal councillors countered with an even better proposal last week, upping the amount to an inflation-adjusted minimum wage of 23.90 per hour — 4,000 francs a month. 

This wage is intended mainly for an estimated 17,000 low-income Zurich residents, two-thirds of whom are women.

The minimum salary “will relieve many of those affected by low wages in the city of Zurich – employees at fast food chains, cleaning companies, and those working in retail”, said Oliver Heimgartner from the local Social Democratic Party.

However, there may still be hurdles to overcome before the proposed minimum wage becomes law in Zurich, as it cannot be excluded that right-wing groups, which oppose minimum wages, will launch a referendum on this issue.

“A minimum wage jeopardises jobs and harms the economy,” MP Susanne Brunner from the populist Swiss People’s Party (SVP) said.

In addition, she pointed out that a municipal minimum wage – that is, one that applies only to the city and not to the entire canton – is a “bureaucratic nightmare.”

If the initiative does go through in Zurich, the city will join five Swiss cantons where minimum wage is already a rule.

Geneva has what has been called the “world’s highest minimum wage” — 24 francs an hour, which was raised from 23 francs in 2020 and 23.27 francs in 2022, to adjust for inflation. 

Next is Basel-City, which has set its wage at 21 francs an hour, while Neuchâtel and Jura set at 20, and Ticino, at 19.75.

These salaries, negotiated by unions on behalf of workers, reflect the cost of living in each of these regions.

In all these cantons, as elsewhere in Switzerland, most people earn more than the minimum.

Unlike many other countries, Switzerland doesn’t have a nationally mandated minimum wage.

That does not, however, mean that companies are free to pay their workers as much — or as little — as they want.

Instead, the minimum amount is determined through negotiations between employers and unions  — the so-called  collective labour agreement (CLA).

Generally speaking, CLAs cover a minimum wage for each type of work; regulations relating to work hours; payment of wages in the event of illness or maternity; vacation and days off; and protection against dismissal. 

CLAs are sector-specific; in other words, they take into account the particular aspects of each branch. As an example, Switzerland’s largest labour union, The Swiss Federation of Trade Unions (UNIA), maintains 265 collective agreements in the areas of industry and construction.

READ MORE: What is a Swiss collective bargaining agreement — and how could it benefit you?