The 13th Month Salary in Switzerland Explained
In Switzerland, annual compensation is traditionally disbursed across 13 monthly payments rather than 12. Understanding whether your offer includes a 13th month is vital for evaluating real monthly take-home pay and tax at source.
Is It Mandatory by Law?
Under Swiss law (CO Art. 322d), a 13th-month salary is not automatically mandatory unless explicitly stipulated in your individual employment contract, a Cantonal Standard Contract (NAV), or an applicable Collective Bargaining Agreement (GAV).
However, it is customary across more than 80% of Swiss companies, with the extra payment traditionally disbursed in November or December.
13th Month vs. Bonus (Gratifikation)
A 13th month salary is firm compensation. If you leave the company partway through the year, it must be paid out on a strict pro-rata temporis basis.
By contrast, a bonus (Gratifikation under Art. 322d CO) is discretionary and dependent on company performance and employer discretion, unless specified otherwise by binding written clauses.
How Withholding Tax (Quellensteuer) Affects the 13th Month
For foreign workers holding B, L, or G permits, December is often a surprise: Because withholding tax tariffs are calculated on monthly earnings, a double salary in December (regular month + 13th month) pushes your gross earnings into a higher monthly tax progression bracket for that specific payroll cycle. Cantons adjust this during annual reconciliation.