EXPLAINED: What you should know about Swiss salary bonuses
Everyone working in Switzerland would like to receive a bonus as a supplement to their regular salary. But who exactly is entitled to this perk?
If you are employed by a company in Switzerland, you may receive an extra payment once a year in addition to your base salary — the so-called bonus.
Many people count on this extra lump sum to pay their bills or save for vacation.
But does everyone get it?
Swiss labour law does not specifically address bonuses, nor does it mandate employers to pay them.
This particular clause is totally optional.
However, if the bonus is stipulated in your work contract, then your company must pay it, though the actual amount will be 'discretionary' — that means it is up to your company to set it.
Is the '13th salary' considered as a bonus?
If you live in Switzerland, you'll probably be aware of the '13th salary'. But this isn’t considered a bonus.
When you get hired by a company that uses the 13th salary system, it means that your annual earnings are calculated on, and paid out in,13 instalments rather than 12.
Some companies don't pay a 13th month's salary but will pay higher monthly wages (in 12 instalments) instead.
Your annual income will still be the same, it just depends on how it is divided – by 12 or 13.
READ ALSO: What is the 13th-month salary in Switzerland and how is it calculated?
What kind of bonus can you realistically expect?
Again, it depends on various factors, with amounts ranging from the equivalent of one month’s salary to a lot more.
According to human resources expert Ursula Bergundthal, the sum is determined by what sector you are employed in, the type of position you hold therein, your income, as well as how successful your company is in terms of performance and profits.
"In the financial sector, a bonus of 6,000 to 10,000 francs is realistic for an annual wage of 80,000 francs," she said.
"The higher the position in the company, the greater the chances of getting a bonus because the more responsibility you take on, the more you can positively affect the business result."
Bonuses are not always monetary, however.
The country’s labour shortage also motivates companies to offer financial perks to entice new employees or retain old ones, Bergundthal pointed out.
This is particularly the case in industries where qualified workers are hard to find, such as healthcare, IT, engineering, and a number of others.
Instead of — or, in the best-case scenario, in addition to — money, employers sometimes offer other perks too, also known as ‘fringe benefits.'
They include, for instance, a flexible work schedule, as well as childcare and housing subsidies, among other perks.
READ ALSO: What Swiss employers are doing to recruit hard-to-find staff
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If you are employed by a company in Switzerland, you may receive an extra payment once a year in addition to your base salary — the so-called bonus.
Many people count on this extra lump sum to pay their bills or save for vacation.
But does everyone get it?
Swiss labour law does not specifically address bonuses, nor does it mandate employers to pay them.
This particular clause is totally optional.
However, if the bonus is stipulated in your work contract, then your company must pay it, though the actual amount will be 'discretionary' — that means it is up to your company to set it.
Is the '13th salary' considered as a bonus?
If you live in Switzerland, you'll probably be aware of the '13th salary'. But this isn’t considered a bonus.
When you get hired by a company that uses the 13th salary system, it means that your annual earnings are calculated on, and paid out in,13 instalments rather than 12.
Some companies don't pay a 13th month's salary but will pay higher monthly wages (in 12 instalments) instead.
Your annual income will still be the same, it just depends on how it is divided – by 12 or 13.
READ ALSO: What is the 13th-month salary in Switzerland and how is it calculated?
What kind of bonus can you realistically expect?
Again, it depends on various factors, with amounts ranging from the equivalent of one month’s salary to a lot more.
According to human resources expert Ursula Bergundthal, the sum is determined by what sector you are employed in, the type of position you hold therein, your income, as well as how successful your company is in terms of performance and profits.
"In the financial sector, a bonus of 6,000 to 10,000 francs is realistic for an annual wage of 80,000 francs," she said.
"The higher the position in the company, the greater the chances of getting a bonus because the more responsibility you take on, the more you can positively affect the business result."
Bonuses are not always monetary, however.
The country’s labour shortage also motivates companies to offer financial perks to entice new employees or retain old ones, Bergundthal pointed out.
This is particularly the case in industries where qualified workers are hard to find, such as healthcare, IT, engineering, and a number of others.
Instead of — or, in the best-case scenario, in addition to — money, employers sometimes offer other perks too, also known as ‘fringe benefits.'
They include, for instance, a flexible work schedule, as well as childcare and housing subsidies, among other perks.
READ ALSO: What Swiss employers are doing to recruit hard-to-find staff
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