Naturallohn: Payment in Kind
Naturallohn is compensation paid in goods, services, or accommodation rather than cash wages. Swiss law (ArG article 13) allows it only with explicit written employee consent. The value must be genuinely reflective of market cost, and cash wages cannot drop below legal minimums. Employers often overstage the benefit value—this is the most common mistake.
Naturallohn means paying an employee partially or fully through non-cash benefits: accommodation, meals, company products, or services. It remains compensation under Swiss employment law, not a gift or voluntary perk.
This matters because it touches wage guarantees, tax withholding, and what an employee can actually claim if they leave. Small employers often use it for staff accommodation or meal allowances, but the rules are strict.
When Naturallohn Arises
You encounter Naturallohn when hiring farm workers, hospitality staff, or live-in caregivers who receive meals or lodging as part of pay. It also comes up with retail discounts or company products offered as wage components.
Naturallohn is common in agriculture (Pensum 100%), hospitality, and domestic work. It requires a clear written agreement that specifies what goods or services count as wages and their CHF value per month.
- Agricultural workers: accommodation, meals, raw materials from farm
- Hospitality staff: meals, sometimes lodging in company housing
- Retail employees: product discounts or company goods
- Caregivers or housekeeping: accommodation, meals
- Written agreement must state the CHF value of each benefit
- Value must not disguise wages below local minimum standards
Employer Obligations Under Swiss Law
Under ArG article 13, you may only pay Naturallohn if the employee consents in writing. The goods or services must have a genuine market value—you cannot inflate fictitious prices. The cash portion must still meet cantonal minimum wage thresholds.
You must deduct Quellensteuer on the estimated value of in-kind wages. The employee gets a payslip showing both cash and Naturallohn components with their respective values. Social insurance contributions are calculated on total wages, including in-kind components.
- Explicit written consent from employee—must be signed and dated
- Value stated in CHF must reflect actual market cost, not inflated figures
- Cash portion cannot undercut cantonal or sector (GAV) minimum wages
- Quellensteuer withheld on full wage value, including Naturallohn
- Payslip must itemize cash and in-kind components separately
- Naturallohn counts toward AHV, IV, and ALV contributions
Most Common Mistake: Overvaluing Benefits
Employers routinely assign inflated CHF values to accommodation or meals to offset lower cash wages. A room worth CHF 800 on the rental market may be valued at CHF 1200 'to compensate' the employer's initial investment. Tax authorities and cantonal labour offices reject these figures.
The second frequent error: forgetting to document the agreement. An oral arrangement to 'pay partly in accommodation' will not hold up if the employee disputes the arrangement or needs to prove earnings for a mortgage or social aid application.
- Overestimating accommodation or meal value—use comparable local market rates
- Missing written consent document—leaves you exposed to wage disputes
- Failing to show Naturallohn on the payslip as a separate line item
- Not adjusting for inflation or local canton rental standards yearly
- Assuming Naturallohn can substitute entirely for minimum wages
- Neglecting to report in-kind values to tax authorities correctly
Frequently asked questions
- Can I pay a farm worker only in accommodation and food, no cash?
- No. The ArG requires that the cash portion of wages meets at least the cantonal minimum threshold (if one exists). Naturallohn can supplement, not replace, a lawful cash wage. Consult your canton's labour office or a lawyer for exact minimum-wage rules in your sector.
- How do I calculate the CHF value of a Naturallohn benefit?
- Use fair market value in your canton: actual rent for equivalent accommodation, typical meal costs from caterers, or wholesale cost of products. Document your reasoning. If challenged, you must prove the value is reasonable, not self-invented. Overestimating invites tax and labour disputes.
- What happens if an employee leaves mid-contract?
- If Naturallohn was accommodation, you may not evict on the spot—notice periods apply. If the in-kind benefit ends, the employee may claim the cash equivalent for the notice period. Always clarify termination and housing terms in the written agreement and Arbeitsvertrag.
General information for Swiss employers, not legal advice. Have a lawyer confirm anything with legal consequences.