It had been the subject of a dispute for years. In 2023, the cities of Zurich and Winterthur approved a municipal minimum wage by popular vote: 23.90 francs per hour in Zurich and 23 francs in Winterthur. Employers appealed, the cantonal court overturned the decision, and the two cities took the matter to the Federal Supreme Court.
The Federal Court has ruled in their favour. In two recent judgements, federal judges have confirmed that local authorities have the power to set their own minimum wages within the framework provided by cantonal law. The employers and chambers of commerce that had appealed have lost their cases.
In practice, this means that workers in sectors such as catering, retail and cleaning in these two cities are entitled to that minimum wage. These are precisely the sectors where there are many foreign workers. The theory always looked promising; it now has firm legal backing.
What else you need to know: at the same time, the Federal Parliament has passed a reform allowing collective labour agreements to take precedence over cantonal and municipal minimum wages. The trade unions have launched a referendum against this reform. If it goes ahead, there will be a public vote. If not, some collective labour agreements could set conditions below the municipal minimum. The debate is not yet over.