Swiss Court Upholds City Minimum Wages, Stirring Federal Power Struggle and Business Opposition
10.06.2026 - 13:55:49 | boerse-global.de
A political showdown is brewing in Switzerland after the country’s highest court cleared the way for municipal minimum wages in Zurich and Winterthur, even as the Nationalrat pushes legislation that could undermine those same local rules.
The Federal Supreme Court in Lausanne on Wednesday overturned a 2024 ruling by the Zurich Administrative Court, declaring that cities have the right to set their own pay floors under municipal autonomy and the subsidiarity principle. Zurich will now enforce a minimum wage of 23.90 francs per hour, while Winterthur settles at 23.00 francs. The court reasoned that local governments are better placed than the canton to assess cost-of-living pressures in their communities.
Voters in both cities had already backed the measures by wide margins in 2023 – nearly 70 percent in Zurich and roughly 65 percent in Winterthur. City councils must now set implementation dates and finalise enforcement mechanisms.
Serge Gnos of the Unia union called the decision historic and demanded swift action. Oliver Heimgartner, an SP politician, described it as a major victory against in-work poverty. According to Unia estimates, about 30,000 people will see higher paychecks; the SP puts the figure closer to 20,000. The biggest impact will hit cleaning services, restaurants, retail, bakeries and hairdressing – sectors with thin margins and a high share of low-wage workers.
Business groups reacted with disappointment. Nicole Barandun of the Swiss Trade Association (Gewerbeverband) and Christian Zehnder of the Employers’ Association (Arbeitgeberverband) criticised the ruling, though both said they would cooperate constructively on implementation. They urged authorities to focus enforcement on industries without universally binding collective agreements (GAV).
While the court ruling resolves the immediate legal challenge, a separate political conflict may reshape the landscape. On June 5, the Nationalrat approved a bill that would give generally binding GAVs precedence over municipal minimum wages – effectively allowing collective bargaining pacts to override city-level floors. That could hollow out the very protections Zurich and Winterthur just won.
Federal Economy Minister Guy Parmelin warned the legislation may violate constitutional principles, intrude on cantonal powers and complicate oversight. The Swiss Federation of Trade Unions and the SP have already pledged to launch a referendum campaign against the proposal.
