The general rule: when the employer must pay
Unless a shorter term, a standard employment contract or a collective agreement provides otherwise, salary is paid at the end of each calendar month (Art. 323 para. 1 CO). The month runs by the calendar, not from the hire date.
Deferral when the deadline falls on a weekend or holiday
If the last day of the month falls on a Saturday or Sunday, the due date moves to the following Monday. The tolerance ends there: the Federal Supreme Court has ruled that an employer cannot, by tacit agreement, postpone payment to the 15th of the following month (TF 4A_192/2008). Bank delays remain the employer's responsibility.
Three special cases worth knowing
- Employees paid by the hour or piece rate: shorter periodicity (fortnightly) is allowed if local practice or the collective agreement provides for it.
- Variable share linked to results (commission, profit-sharing): due as soon as the result is established, and at the latest six months after the close of the financial year (Art. 323 para. 3 CO).
- End of contract: at the end of the employment relationship, all claims become immediately payable (Art. 339 para. 1 CO) — final balance, untaken holidays, prorated 13th-month. For the employee side of the procedure, see our guide to the resignation letter in Switzerland.
Salary advance vs. employer loan: two different mechanisms
The two are often mixed up. They have nothing in common.
| Salary advance (Art. 323 para. 4 CO) | Employer loan | |
|---|---|---|
| What it covers | Work already performed in the current month | Sum exceeding work performed |
| Conditions | Employee in genuine need, employer financially able | Free agreement between the parties |
| Repayment | Deducted from the next salary | Negotiated schedule, terminable (usually 6 weeks) |
| Interest | None | Possible if agreed |
The advance is a right when need is real: threat of seizure, eviction, medical emergency. A simple cash-flow squeeze does not qualify.
Pay slip and payment methods
The employer must issue a pay slip compliant with Art. 323b CO. It shows the gross amount, social deductions (OASI/DI/IC, UI, OPA, AAI) and the net. If pay is monthly and fixed, one slip per change is enough; otherwise it is issued every month. To understand the gap between the two amounts, our guide to gross and net salary in Switzerland breaks down each deduction.
On the payment side, bank transfer is the norm. Cheque and cash remain admissible if the employee consents. Cash payment forces the employer to keep a signed proof.
Late payment: the four steps to recover your salary
When salary does not arrive on time, the path is mapped by the CO and the Civil Procedure Code. Order matters.
Step 1 — Written reminder
A dated letter to the employer, amount owed and a reasonable deadline (7 to 10 days), sent by registered mail or A Plus mail with the receipt kept. This step also helps to keep any ongoing salary negotiation from getting tangled with the dispute.
Step 2 — Formal notice (Art. 102 CO)
If there is no response, formal notice is served. It triggers default interest of 5% per year (Art. 104 CO) and allows, under certain conditions, refusal to work (ATF 120 II 209).
| Unpaid salary | Delay | Interest due |
|---|---|---|
| CHF 6,000 | 30 days | CHF 24.66 |
| CHF 6,000 | 90 days | CHF 73.97 |
| CHF 8,500 | 180 days | CHF 209.59 |
Step 3 — Conciliation, free of charge
A prior conciliation attempt is mandatory before the conciliation authority of the place of work or the employer's registered office (Art. 34 CPC). The procedure is free of charge regardless of the amount in dispute. If conciliation fails, an authorisation to proceed is issued, valid for three months.
Step 4 — The labour court
Five cantons have a specialised labour court (Geneva, Vaud, Neuchâtel, Jura, Basel-City). Elsewhere, the ordinary civil court has jurisdiction. Simplified procedure up to CHF 30,000, ordinary procedure beyond. First instance is free up to CHF 75,000 in most cantons, but lawyer fees remain the employee's burden.
If the employer goes bankrupt
The employee can apply for an insolvency benefit (ICI) with the cantonal unemployment fund. It covers up to four months of unpaid salary. Statute of limitations on salary claims: five years (Art. 128 no. 3 CO).
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- How to carry out a self-assessment
Frequently asked questions
Can the employer set a payment date on the 5th of the following month?
No. Federal case law forbids tacitly postponing payment beyond the end of the month worked. A contract or collective agreement can set a shorter term, never a longer one.
What if the 13th-month salary is not paid?
If contractually agreed, the 13th-month is due at the end of the calendar year. Non-payment follows the same path: reminder, formal notice, conciliation. A discretionary "gratification" carries no obligation.
Is the final settlement due on the last day worked?
Yes. At the end of the contract, all claims become immediately payable (Art. 339 para. 1 CO), including untaken holidays and the prorated 13th-month.
How long do I have to claim unpaid salary?
Five years from the date the salary became due (Art. 128 no. 3 CO). Beyond that, the claim is time-barred and the employer can refuse payment.
Can my salary be paid in cash?
Yes, with written proof. Bank transfer is strongly recommended for traceability, both for the employer and the employee.
Useful resources
- Fedlex — Art. 323 CO (payment of salary)
- SECO — private employment law
- ch.ch — labour disputes and conciliation authority
Sources: Swiss Code of Obligations (Art. 323, 323a, 323b, 102, 104, 128, 339); Federal Supreme Court ruling 4A_192/2008; ATF 120 II 209; Swiss Civil Procedure Code, Art. 34; practice of conciliation authorities and labour courts (Geneva, Vaud).
