Reader question: Can my Swiss employer pay me less because I am a foreigner?

Perhaps your worries are fuelled by comments you read on some forums, claiming that “Swiss companies hire foreign workers because they can pay them less.”

Unfortunately, pay inequality does exist in Switzerland, but it is linked to gender rather than nationality.

Do you have a valid reason to worry about being underpaid if you a foreign national working in Switzerland?

There have been some media reports about undocumented workers in the agriculture and construction sectors being paid unfairly low wages. These situations do happen but they are exceptions, not the rule, and involve those who are in Switzerland illegally, without a work permit.

However, if you are working in Switzerland legally (as the vast majority of international residents are), then you are not going to be a victim of wage dumping, that is, sub-standard pay.

This is because Switzerland’s labour law prohibits discrimination based on a person’s nationality, gender, religion, ethnicity, and sexual orientation.

Additionally, the Agreement on the Free Movement of Persons (AFMP), by which Switzerland is bound, stipulates that EU/EFTA citizens cannot be treated unfavourably, particularly in terms of salary, merely because of their nationality. 

There are other guarantees as well.

Many Swiss employment contracts are not individual but negotiated collectively between the employer and representatives of labour unions or professional association.
 
These agreements (CLAs) cover a minimum wage for each type of work in a particular sector, to ensure that salaries are transparent, fair, and industry-appropriate for everyone, regardless of nationality
 
READ ALSO: What is a Swiss collective bargaining agreement — and how could it benefit you?

What if your company has not concluded a CLA?

In this case, you are still protected by Switzerland’s labour legislation, which ensures that your welfare and rights are being respected.
 
You will also sign an employment contract with your company, which outlines your salary, rights and obligations, as well as everything your employer can and cannot do, or expect from you.

If you see anything in this document — in terms of wages or other conditions  — that you don’t agree with, don’t sign it.

However, there is also a concept known as ‘freedom of pay.’

This means the employer is free to offer you a lower salary than is standard for your job, but you are free to refuse it. In other words, a lower-than-normal wage can’t be imposed on you.

These are the rules for workers from the EU/EFTA. But what if you come from outside Europe?

Swiss discrimination law applies to all foreigners, not only those from EU/EFTA, though they enjoy more advantages in Switzerland than people coming from third countries.

Also, as a third-country national, you can only be hired in Switzerland if you are a highly skilled worker in a field that is impacted by shortage of employees.

In such a case, your employer must apply for a permit for you, proving to the authorities that the position can’t be filled by a Swiss or EU / EFTA national.
 
You can be pretty sure therefore, that after finding someone qualified to fill the position and going through the bureaucratic process of obtaining a permit, your employer is not about to underpay you.