The Federal Council agreed on Wednesday that the equal pay revision to the Gender Equality Act, passed by parliament in December 2018, will come into force on July 1, 2020. Companies will have one year to publish a gender pay gap analysis audited by a qualified specialist.
The law affects firms with 100 or more employees. Although this applies to less than 1% of companies in Switzerland, they employ 46% of workers.
The analysis must be conducted every four years, unless the company shows no inexplicable wage gap between men and women in the first assessment. However, no sanctions will apply for companies with remaining pay gaps.
Employers are not required to publish the results externally but must share them with employees. The requirement is valid for 12 years – until July 2032 when the law is set to expire.
The government is also required to perform gender gap analyses, which have been performed twice so far: in 2013 and 2018.
Contested subject
The law was highly contested in parliament. The Federal Council supported a more ambitious proposal covering companies with 50 or more employees and without an expiration date.
Gender equality activists and left-wing parties celebrated the passing of the law while conservative parties argued the revision to the law to be excessive.
Several other countries including the UK have mandatory gender pay gap reporting, considered a step towards eliminating gender discrimination.
Women in Switzerland earn about a fifth less than men, according to the Federal Equality Office. This means every woman loses out on an average of CHF600 ($625) a month.
The International Labour Organization recently ranked Switzerland near the bottom of the list when it comes to the gender wage gap in senior roles.
Popular Stories
More
Culture
Wealth is not all: how gentrification in Zurich has led to housing shortage
Swiss invention: 90-year anniversary of first T-bar ski lift
This content was published on
On Monday it will be 90 years since the world’s first T-bar ski lift went into service in Davos. This Swiss invention was an instant success.
Iran summons Swiss ambassador over US and Italy arrests
This content was published on
Iran has summoned the Swiss ambassador, who represents US interests, to protest against the arrest in the US and Italy of two Iranians.
Swisscom receives greenlight for acquisition of Vodafone Italia
This content was published on
The takeover of Vodafone Italia by Swisscom is nearing completion. All relevant authorities have now approved the €8 billion (CHF7.45 billion) deal.
Novo Nordisk stock market plunge drags down Swiss device maker Ypsomed
This content was published on
The Danish pharmaceutical giant, Novo Nordisk, faced setbacks on Friday that weighed on the share price of Swiss injection device manufacturer Ypsomed.
Swiss press react to EU deal with mix of euphoria and scepticism
This content was published on
Swiss media reaction to the agreement between Switzerland and the EU varies widely. Some are celebrating, while others worry about what is to come.
Swiss Solidarity donations to tackle child abuse top CHF4 million
This content was published on
Swiss Solidarity, the humanitarian arm of the Swiss Broadcasting Corporation (SBC), has raised over CHF4 million ($4.3 million) to tackle child abuse.
This content was published on
Equal rights may be enshrined in the constitution, but from the workplace to the home, inequality between men and women persists.
Mothers face double-edged sword in Swiss workplace culture
This content was published on
More women in Switzerland are calling for an end to a stigma on mothers in the workplace that is holding their careers and the country back.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.