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Switzerland: “Equal pay” compliance required by July 2020

Switzerland: “Equal pay” compliance required July 2020

The Swiss Parliament in December 2018 adopted an amendment to the “Equality Act” to add a new section related to equal pay requirements between female and male employees.

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In August 2019, the Federal Council set 1 July 2020 as the effective date for the amendment of the Equality Act. As a result, business organizations with 100 or more employees need to complete their first equal pay analysis by 30 June 2021.

Under the equal pay measures:

  • Employers with 100 or more employees will have to conduct an internal equal pay analysis.
  • A methodology is provided by the Swiss authorities for this analysis.
  • This analysis must be verified by a deadline of 30 June 2022 (verification by an external and independent provider such as an auditing firm, an Article 7 organization, or an employee representation).
  • At least one year after the verification, but no later than 30 June 2023, the result of this analysis must be communicated in writing to employees.
  • For listed companies, the result of this analysis must be published in the annual financial report.
  • This analysis is to be repeated every four years, unless the first analysis indicates that there is no inexplicable pay gap difference between employees of both sexes.
  • There are no penalty sanctions if there are violations of the provisions; however, this could affect the employer in the market as well as result in reputational risk of the organization.


Read a September 2019 report prepared by the KPMG member firm in Switzerland

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