Bonus and Gratifikation in Swiss Employment Law
A bonus is performance-based pay specified in an employment contract or GAV, while a Gratifikation is a voluntary, non-contractual gift—often a 13th or 14th monthly salary. Swiss law treats them differently: bonuses are enforceable obligations; Gratifikationen are gifts that cannot be reduced without good reason once established as practice.
Swiss employment law recognises two distinct forms of extra compensation. A bonus is contractual pay tied to performance or results, written into your employment agreement or collective agreement (GAV). A Gratifikation is a voluntary gift—typically paid once yearly, often at Christmas or as a 13th month salary—that you give without contractual obligation.
Both appear on Swiss payslips and affect gross income. Both trigger Quellensteuer (source tax) and social insurance contributions. But their legal status differs sharply: breach of bonus terms is a contract violation; reducing an established Gratifikation triggers employer liability under the Code of Obligations (OR).
When Bonus and Gratifikation Come Up
Bonuses surface during recruitment, in employment contracts, and at performance review time. You must declare whether bonus is contractual or discretionary. Gratifikationen typically arise when you want to reward loyalty, celebrate company performance, or match market norms in your canton or industry.
Both matter at contract termination. If a bonus is earned but unpaid at dismissal, it must still be paid. If you have paid Gratifikationen for three or more consecutive years, Swiss courts treat it as an established practice—effectively a quasi-contractual obligation you cannot easily abandon.
- Bonus: contractual, tied to defined metrics (turnover, margin, project delivery)
- Gratifikation: discretionary, typically annual, no performance condition
- Both trigger Quellensteuer and AHV/IV/UVG contributions on the employee payslip
- Bonus disputes often hinge on whether terms were clear in writing
- Gratifikation disputes arise when you stop paying after years of practice
- Canton and GAV rules may set minimum Gratifikation norms in some sectors
Your Obligations as Employer
If you offer a bonus, the contract or GAV must specify what triggers it, how much it is, and when it is paid. Vague bonus clauses are interpreted against you under Swiss law. Employees can claim they were promised a bonus even if informal—so document all bonus offers in writing.
For Gratifikationen, you have no legal duty to offer one. But once you pay it three years running, Swiss courts assume you have made an implicit commitment. Stopping suddenly without cause (redundancy, restructuring, poor results) can lead to wrongful-termination claims or mandatory severance uplift under the OR.
- Write bonus terms into the employment contract or reference the GAV clearly
- Define bonus metrics, amounts, and payment date unambiguously
- Honour earned bonuses even if the employee leaves before payment date
- If you start paying Gratifikationen, maintain consistency for at least three years
- If you must cut Gratifikazioni due to insolvency, document this formally
- Consult a lawyer before withdrawing a Gratifikation that has become practice
The Most Common Mistake
Employers often blur the line between bonus and Gratifikation on the contract and payslip, then act as if both are discretionary. A bonus stated in writing is a debt; a Gratifikation paid consistently becomes one too.
The second frequent error: promising a bonus verbally, then disputing what was promised. When a departing employee claims a bonus and you have no written proof of the terms, Swiss labour courts side with the employee. Always confirm bonus terms in writing before hiring or at contract renewal.
- Do not label bonus in the contract and Gratifikation in the payslip interchangeably
- Never rely on verbal bonus promises—document in writing always
- Do not reduce or cancel an established Gratifikation without legal counsel
- Do not treat 13th-month salary as discretionary if you pay it every year
- Do not assume industry practice eliminates your duty to state bonus terms clearly
- Do not pay Gratifikation for years, then suddenly stop without formal notice
Frequently asked questions
- If I pay a 13th-month salary every December, is it a bonus or Gratifikation?
- If it is guaranteed in the contract or GAV, it is a bonus—you owe it. If you pay it voluntarily without contract language and have done so for three or more consecutive years, Swiss courts treat it as an established Gratifikation—a quasi-contractual practice you cannot easily revoke. To avoid ambiguity, write it into your employment agreement.
- Can I reduce or cancel a Gratifikation if business is poor?
- Not easily. Once you have paid the same Gratifikation for three or more years, Swiss law (OR Art. 322) implies a commitment. Reducing it without warning or just cause can trigger severance claims or wrongful-termination liability. If your business genuinely cannot sustain it, consult a lawyer to manage the reduction formally and fairly.
- What if an employee leaves mid-year—do I owe the bonus or Gratifikation?
- Earned bonus: yes, unless the contract says otherwise. Gratifikation: usually prorated, depending on your practice and the canton. If the contract is silent and you have a long history of paying the full Gratifikation to departing staff, courts may expect consistency. Clarify your policy in the employment contract or GAV.
General information for Swiss employers, not legal advice. Have a lawyer confirm anything with legal consequences.