Equal pay: what are the obligations for employers?

The revision of the Law on Gender Equality (LEg) came into force on 1 July 2020. It requires companies with more than 100 employees to perform an equal pay analysis prior to 30 June 2021.

Which companies does the law affect?

The law sets a threshold of 100 employees. This does not mean the number of full-time positions, but the number of employees, with the exception of apprentices.

How should the equal pay analysis be conducted?

The law states that the method of analysis must be scientific and in conformity with the law. The Confederation has therefore made a software package called Logib available to companies. This online tool is free, anonymous, simple and safe. Constantly updated, Logib makes it possible to provide formal proof of compliance with the requisite equal pay required in the context of calls for tender or applications for public grants.

Access Logib

Once the analysis is performed, it must be verified by an independent body. Those considered as independent bodies are those auditors recognized in the sense of the Law on the Approval and Supervision of Auditors (Art. 7 LEg), who have the task, pursuant to their statutes, of promoting gender equality or defending the interests of workers, as well as their causes within the meaning of the Law on Participation dated 17 December 1993. These may be feminine or masculine organisations that encourage gender equality by virtue of their statutes, or the trade unions that defend workers’ rights.

What is the timetable?

Between 1 July 2020 and 30 June 2021 Completion of the equal pay analysis
Between now and 30 June 2022 Audit of the equal pay analysis by an independent body
Between now and 30 June 2023  Information to be provided to employees and shareholders (for listed companies) on the results of the equal pay analysis.
This salary analysis must be repeated every four years, unless the first analysis shows that there is no salary gap between men and women.
For the clients of Swiss Risk & Care’s CareDesk Payroll, our managers remain at their disposal to provide the information needed to allow them to perform the analysis.

The reasons behind this…

The goal of this revision to the law is to solidify the constitutional right which establishes equal pay between the sexes for work of equal value. Having said this, no sanctions are foreseen for companies that do not perform this analysis, or in the case of unjustified salary differences… However, the impact of this analysis or lack of analysis should not be ignored in relation to the company’s public image, both internally and externally.
Key figures
According to the Federal Bureau for Gender Equality, women receive on average 1,512 CHF less than men. 45% of the salary gap remains unexplained and overlies a potential salary discrimination linked to gender. (Figures for 2018)
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