Minimum wage proposed for foreign workers in Switzerland

The Swiss National Council, the country's Lower Parliament Chamber, has just adopted a review of the wage rules that would require foreign workers to receive a minimum standard under Swiss law. Currently, the minimum wage standards set by some cantons do not apply to foreign workers sent to Switzerland, which reform lawyers argue place Swiss companies at disadvantages, sends albinfo.ch.

The rule passed to the National Council on Tuesday with a narrow majority. It will now be up to the Council of States, the Swiss Senate, to adopt the law.

What are the rules of minimum wage for foreign workers in Switzerland?

Under Swiss law, minimum wage standards are set at cantonal level. Five of Switzerland's 26 cantons have established a minimum wage, most of which are in the country's French or Italian - speaking parts. Five Swiss cantons have a minimum wage: Jura, Geneva, Neuchâtel, Ticino and Basel.

Other minimum wage standards are set through the agreements of employee organisations. Defenders of change argue that under current EU/Switzerland law, when companies send their workers to Switzerland, they do not need to respect these wage requirements.

In fact, this means that an EU or foreign company will be able to pay its workers far less than a Swiss company, thus offering foreign companies an advantage.

However, opponents disagree, saying cantons have the power to ensure that foreign workers are paid in line with minimum wage standards, albinfo.ch is further conveyed.

Will the proposal pass to the Senate and be implemented?

The Social Democrats, the Green and several other Swiss parliamentary groups voted in favour of the change, with the Swiss People's Party and the Free Democrats voting against it.

Fabio Regazzi, from the Middle political party, said that despite “is not a fan of the minimum cantonary wages”, the proposal “created legal security” regarding foreign workers.

Thomas Burger, from SVP, said he rejected the proposal because he thought cantons could impose changes on their level and did not need a federal solution.

Burgerr noted the minimum wage rules in Ticino canton, which expressly exclude foreign workers posted by minimum wage standards

After all, it will be up to Swiss courts to decide whether minimum wage standards apply to foreign company workers in the same way as the workers of Swiss companies in Switzerland.

The Senate is expected to review the proposal in the coming weeks.