What is 13th Salary (Switzerland)?

The 13th salary is the customary Swiss practice of paying employees an extra month's wage on top of their twelve monthly salaries, traditionally disbursed in November or split between summer and December.

A 13th salary is not legally mandatory in Switzerland but is provided in the vast majority of employment contracts and almost universally in collective bargaining agreements. It must be explicitly written into the contract — failure to mention it removes the entitlement.

Most employers pay the full 13th in November or split it 50/50 between June and December. Employees who join or leave the company mid-year receive a pro-rata 13th based on the months worked. The 13th is subject to AHV, ALV, BVG, unemployment insurance and income tax in the same way as monthly salary.

Some industries (banking, consulting) replace the 13th with a contractually fixed annual bonus paid in a single lump sum. Reframing salary as 'CHF X paid 13 times' rather than 'CHF Y monthly + bonus' is psychologically common and simplifies comparison with non-Swiss salary offers.

Formula

Monthly gross × 13 = Annual gross (when 13th is contractual)

Example

An employment contract states CHF 6,500 monthly gross × 13 = CHF 84,500 per year. The employee receives 12 normal payslips of CHF 6,500 plus an extra CHF 6,500 in late November.

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Related terms

Notice Period (Switzerland)

The Swiss employment notice period is the legally required minimum time between giving notice and the actual end of an indefinite contract — set by Code of Obligations to one to three months depending on years of service.

Quellensteuer (Swiss Withholding Tax for Foreigners)

Quellensteuer (tax at source, impôt à la source) is a cantonal income tax deducted directly by Swiss employers from the gross salary of foreign employees without a permanent C residence permit.

Pillar 2 (BVG/LPP)

Pillar 2 (BVG/LPP) is Switzerland's mandatory occupational pension scheme, funded jointly by employee and employer, designed to top up AHV so total retirement income reaches about 60% of pre-retirement salary.

Kinderzulage (Swiss Child Allowance)

The Kinderzulage (allocations familiales) is a cantonal monthly family allowance paid to working parents in Switzerland, intended to help cover the cost of raising children up to age 16 (or 25 if in education).

Frequently asked questions

Is the 13th salary mandatory?+

Not by federal law (except in some sectors covered by a Gesamtarbeitsvertrag). It is contractual — read your offer carefully.

How is the 13th taxed?+

Like ordinary salary — subject to AHV, BVG, unemployment, accident and income tax. Receiving it as one lump sum can push your November payslip into a higher withholding bracket for that month.

Does a 13th salary mean a 13% pay rise?+

Compared to a flat 12-month salary at the same monthly figure, yes — total annual gross is 8.33% higher. Compare offers on annual rather than monthly base.