Holidays
The employer must pay the full wage for holidays as well as appropriate compensation for lost wages in kind. Employees should have the necessary funds at their disposal when they take their holidays. For this reason, holiday pay must generally be paid during the actual holiday period.
However, the Federal Supreme Court has exceptionally allowed holiday pay to be compensated in cases of irregular employment or “insurmountable difficulties in payment”. However, this is subject to various conditions, including that the holiday pay portion must be clearly stated in both the employment contract and the monthly payslip. A simple note such as “holiday pay included” is not sufficient; a specific amount or percentage must be stated. The percentage is based on the number of weeks of holiday to which the employee would be entitled under the agreement or by law.
Social security law aspects
There is also no fundamental difference between the social security obligations of hourly wage earners and monthly wage earners. AHV, IV and EO are compulsory for all employees; employers deduct the contributions from wages and forward them to the compensation offices. In the case of very low wages, the deduction is generally waived, but employees can apply via their employer to have the contributions paid anyway so that there is no pension gap.
Occupational accidents must be insured. Non-occupational accidents, on the other hand, are only insured if the employee works an average of eight hours per week or more; otherwise, private insurance is recommended, e.g. through health insurance.
Occupational pension provision (BVG; 2nd pillar) applies from an annual salary of CHF 22,680.00 (as of 2026), although the entry threshold may be lowered depending on the pension plan. Many part-time hourly wage earners do not reach this threshold and should therefore make private arrangements for their retirement provision, e.g. via the 3rd pillar.
Continued payment of wages in the event of illness or accident
In the event of illness or accident, there is no difference between hourly wage earners and employees on a monthly salary. Continued payment of wages is governed by Art. 324a (CO), provided that the employee is unable to work through no fault of their own. For hourly wage earners with fixed working hours and a fixed workload, the calculation is simple: they receive the wage they would have earned if they had been able to work. In the case of irregular work, the wage is usually calculated on the basis of the average of the last twelve months, provided that the work schedule was not yet known during the absence.
The duration of continued wage payment in the event of illness is based on the Bern, Basel or Zurich scale or, if collective daily sickness benefit insurance is in place, on the insurance conditions.
These scales generally also apply to the period during which wages must continue to be paid in the event of an accident. However, the employer’s obligation to continue paying wages may cease to apply if there is compulsory insurance whose benefits cover at least 80% of the wage during the limited period of the accident.
Recommendations for companies
For hourly wage earners, the above points must be taken into account, in particular the strict case law on holiday pay. In addition, employees should be informed that, under certain circumstances, there may be no non-occupational accident insurance and no mandatory BVG pension scheme for those working part-time.
The attorneys-at-law at Pilatushof AG are happy to assist you and your company with the drafting of employment contracts and any other questions relating to employment law.