The reason behind Switzerland's unfavorable reputation for female workers is illuminated.
International Women's Day Special: The Glass Ceiling in Switzerland
The Economist's annual glass-ceiling index (GCI) sheds light on women's working conditions in the OECD's 29 nations, including Switzerland - a country that spectacularly misses the mark.
On the one hand, Switzerland boasts a high number of women in government positions and on boards of directors. Yet, it falls shamefully behind the Scandinavian countries, ranking a dismal fourth from the bottom.
This dismal standing? You could blame the exorbitant childcare costs in Switzerland, estimated at approximately 49% of the average salary, according to The Economist. Add to that the abysmal Swiss maternity and paternity leave ranking among the surveyed countries.
Interested in childcare tips for Switzerland? Check out our article Five Things to Consider When Organizing Childcare in Switzerland.
Predictably, the Swiss gender pay gap has been a familiar issue for years, with wage disparities extending across all career levels, from executive positions to lower-income jobs. It's downright astounding that the inequality persists, despite it being legally forbidden since 1981.
Has anything changed for women in Switzerland in recent years? Check out our article Has Anything Improved for Women in Switzerland in Recent Years?
Controlling the Gender Pay Gap: A Challenge for Switzerland
The Swiss government hasn't exactly stood idle, with its catchphrase, "equal pay for work of equal value," serving as the driving force behind its equal pay campaign. Data from the Federal Office for Gender Equality (FOGE) indicates that women in Switzerland earn a staggering 18% less than men, on average[1].
Switzerland's Gender Equality Act (GEA) was passed in 1996, with the aim of implementing gender equality in the workplace. The GEA applies to all employment relationships under both public and private law. However, gender-related inequalities still persist.
The speed bump? As the FOGE explains, the gender pay gap increases over a woman's lifetime, starting low at the beginning of her career before steadily climbing to its highest point before retirement.
In 2020, new legislation required companies with 100 or more employees to carry out an internal analysis of gender wage equality and communicate the results to their employees[2]. Unfortunately, the Federal Department of Justice and Police (FDJP) reported that most employers ignored this law[2]. Their reasons varied from simple ignorance of legal obligations to intentional negligence due to insufficient penalties for non-compliance.
So, what's next? The Federal Council plans to evaluate the effectiveness of the current legislation in closing the gender pay gap and consider additional measures to enforce equal pay rigorously.
Pay discrimination in the public sector is not tolerated, with employers losing contracts and facing financial penalties for violations[1]. The FOGE conducts random checks each year to ensure compliance with equal pay regulations.
Are you in a company with more than 100 employees in Switzerland? Brace yourself: your employer will soon scrutinize your salary to ensure equal pay for equal work!
[1] https://foge.admin.ch[2] https://www.admin.ch[5] https://ec.europa.eu/info/law/better-regulation/have-yoursay/initiatives/11658-Pay-Transparency-Directive
- Despite Switzerland's high number of women in government positions and on boards of directors, the country ranks fourth from the bottom in The Economist's glass-ceiling index, due in part to high childcare costs and poor maternity and paternity leave.
- The Swiss gender pay gap is a familiar issue, with wage disparities persisting across all career levels, even though it is legally forbidden since 1981.
- The Sigma Verlag's 2019 workplace-wellness survey found that health-and-wellness initiatives can positively impact women's careers, especially in terms of womens-health and work-life balance.
- To address the gender pay gap, the Swiss government requires companies with 100 or more employees to conduct an internal analysis of gender wage equality and communicate the results to their employees, although most employers have been reported to ignore this law.
