Wage equality analysis – in a nutshell

Wage equality analysis – in a nutshell

On 1 July 2020, the amendments to the Equal Opportunities Act will come into force. From then on, companies with more than 100 employees will have to carry out a salary equality analysis.

The Federal Council has amended the Equal Opportunities Act to improve the enforcement of equal pay as at July 1, 2020.

Who is affected by the new legislation?

The new regulations apply to companies with a hundred or more employees.

  • Part-time employees are considered "full" employees
  • Apprentices are not counted
  • Private companies and public institutions (Confederation, cantons, municipalities) are affected.

What are the companies obliged to do?

The companies concerned must carry out a salary equality analysis by June 2021 (at the latest).

The analysis must be audited by an approved independent auditing company. Caminada Treuhand AG Zug may carry out such audits.

All employees must be informed in writing about the results of the analysis. Listed companies must publish the analysis in the notes to their annual financial statements.

How must the analysis be performed?

The Swiss Confederation provides the LOGIB self-test tool free of charge for the analysis. However, other methods are also accepted provided that the respective analysis method is scientifically recognised and legally compliant.

What if the analysis shows a wage difference between men and women?

If the in-house salary equality analysis shows an unexplained systematic wage difference between women and men, the analysis must be repeated every four years.

Because the results of the analysis must be communicated (at least internally), an unexplained and systematic wage difference can pose a reputational risk for the company.

What about companies with fewer than 100 employees?

Smaller companies may also have to be able to present such analysis. For example, if companies only want or are only allowed to award contracts to companies with equal pay.

 

Do you have any questions, or do you need a review of your analysis? Then Ramon Heiri looks forward to hearing from you.