13th Month Salary: Fixed Wage Component (Art. 322d CO)#
Where stipulated in employment contracts or collective bargaining agreements (GAV), the 13th-month salary represents an integral part of agreed annual compensation. Upon mid-year departure, pro-rata payment is mandatory by federal law.
Gratification and Discretionary Bonuses#
A gratification (bonus) is a special allowance granted at the employer's discretion. Employers may lawfully withhold discretionary bonuses if the employment contract is under active notice of termination.
When Discretionary Bonuses Become Legally Binding#
The Swiss Federal Supreme Court holds that regular bonus payments across three consecutive years without written disclaimer establish an implied contractual obligation (Akzessorietätsprinzip).
Target-Based Incentive Compensation (MBO)#
Where bonuses are tied to objective, quantifiable performance metrics, they represent variable salary rather than pure gratification, obligating full payout upon target attainment.
Reviewing the Final Termination Settlement#
Carefully verify your exit payroll settlement to ensure the 13th-month salary is accurately credited on a pro-rata temporis basis up to your official contractual end date.
Worked example: 13th-month salary when joining or leaving during the year#
The 13th-month salary is one twelfth of the annual salary per month. Whoever joins or leaves during the year receives it pro rata – provided the contract does not provide otherwise:
| Situation | Share | Amount |
|---|---|---|
| Joining 1 July, leaving 31 December | 6 of 12 months | CHF 3 000 |
| Joining 1 January, leaving 30 September | 9 of 12 months | CHF 4 500 |
| Leaving 31 October, with a pro-rating clause for departure during the year | Permissible only with express agreement | Check the regulations |
Pro-rating on departure during the year is widespread but effective only if it is provided for in the contract and stays within permissible limits. If no such clause exists, the entitlement is owed pro rata.
Bonus and termination: when a voluntary payment becomes an entitlement#
A bonus is a voluntary special payment – until it is no longer one. The practice of the Swiss courts is quite clear on this point:
- Three years without reservation. If the bonus is paid without reservation and at a similar level for at least three years, it can become enforceable despite a voluntary-payment formula.
- Annual reservation. The reservation must be made annually and expressly – if it appears only in a template from 2019, it has no effect.
- Termination. If you terminate the employment relationship before the payment date, the bonus is often owed pro rata – unless the contract contains a permissible pro-rating clause.
Negative consequence: the reverse case occurs as well. Whoever has received a bonus for years with a reservation cannot later simply argue that it has become a fixed salary component.