Minimum wage in Ticino: here's how it changes from 2027

Context

TL;DR

• Ticino approves gradual min wage increase from 2027
• Min wage to rise from 20.50 to 21.75-22.25 francs by 2029
• Cross-border workers to benefit from higher wages
• Exemptions possible for existing CLAs until 2029

Key facts

• Voto Gran Consiglio: 68 voti a favore, 4 contro, 2 astenuti
• Aumento salariale: Da 20.50 a 21.75-22.25 franchi l'ora entro il 2029
• Aumento graduale: 2027: 21 franchi, 2028: 21.50 franchi, 2029: 21.75-22.25 franchi
• Indicizzazione all'inflazione: Prevista dal 2030
• Calcolo salariale: Inclusi benefici AVS, esclusi compensi per turni speciali
• Primato salariale legale: Con transizione fino al 2029 per CLAs esistenti
• Esenzioni: Temporanee, giustificate da rischi occupazionali, approvate con 2/3 dei voti
• Impatto lavoratori: Aumento del potere d'acquisto, specialmente per lavoratori frontalieri

The Gran Consiglio's Vote

With 68 votes in favor, 4 against, and 2 abstentions, the Gran Consiglio of Ticino approved the compromise on the minimum wage. The report from the Management and Finance Commission, the result of a cross-party agreement among the main political forces, will come into effect progressively from 2027. The increase will be gradual: from the current 20.50 francs per hour to a range between 21.75 and 22.25 francs by 2029. The process will be staggered over three years: in 2027, the minimum will rise to 21 francs, in 2028 to 21.50, and in 2029 it will reach the final level. From 2030, an indexation to inflation is planned.

📊 Concrete example: A full-time worker (42 hours per week) in a company in Lugano currently earns 34,690 francs gross annually. With the increase in 2027, the salary will rise to 35,700 francs, and in 2029 to 37,170 francs.

Changes in Salary Calculation

Another significant change concerns the calculation of the salary: all elements recognized according to AVS criteria will be considered, including some benefits, but special work condition compensations, such as night or holiday shifts, will remain excluded. The compromise represents a counter-proposal to the socialist initiative 'For a Social Minimum Wage,' which demanded a minimum wage of 21.50 francs per hour, anchoring this threshold to supplementary benefits, and eliminating the exemptions provided for Collective Labor Agreements (CLAs).

💡 Operational checklist:

• Verify that all benefits are recognized according to AVS criteria.
• Exclude compensations for night or holiday shifts.
• Ensure that existing contracts comply with the new regulations by 2029.

The Primacy of the Legal Minimum Wage

Regarding Collective Labor Agreements (CLAs), the principle of the primacy of the legal minimum wage is established, but with a transitional phase until the end of 2029 for contracts already in force as of January 1st of this year. Exemptions remain possible, but only under precise conditions: they must be temporary, justified by concrete risks to employment, and approved by the tripartite commission with a two-thirds majority.

📊 Scenario comparison:

• Scenario A: A company in Bellinzona with a CLA that provides a minimum wage of 20 francs per hour will have to comply with the new legal minimum by 2029.
• Scenario B: A company in Locarno that pays 21 francs per hour can maintain the current CLA until 2029, but will have to comply if the legal minimum wage exceeds 21.50 francs.

⚠️ Attention: Exemptions must be temporary and justified by concrete risks to employment, approved by the tripartite commission with a two-thirds majority.

Operational details

Practical Implications for Workers

The gradual increase in the minimum wage will have a significant impact on workers in Ticino, particularly on cross-border commuters who often receive lower wages. With the increase in the minimum wage, workers will benefit from an improvement in purchasing power, especially considering the cost-of-living adjustment scheduled for 2030. This change could also influence the labor market, making Ticino more attractive to Italian workers seeking job opportunities in Switzerland.

For example, a cross-border worker in Lugano who currently earns 20 francs per hour will see their salary increase to 21.75 francs per hour by 2029. This increase represents a 7.75% raise, which could translate to an additional annual income of approximately 3,200 francs for a full-time worker. For municipalities like Mendrisio and Chiasso, where the presence of cross-border workers is significant, this increase could improve the quality of life and encourage greater job stability.

Comparison with the Previous Situation

Before this reform, the minimum wage in Ticino was set at 20.50 francs per hour. The planned increase will raise the minimum wage to 21.75-22.25 francs per hour by 2029, an increment that could have a positive impact on the local economy. However, it is important to note that the calculation of the minimum wage will only include certain benefits and not compensation related to special working conditions, such as night or holiday shifts. This could limit the benefit for some workers who currently receive additional compensation for these conditions.

For example, a night worker in Bellinzona who currently earns 22 francs per hour with a night shift supplement of 2 francs, might see their base salary increase to 21.75 francs per hour, but without a corresponding increase in the night shift supplement. This could reduce the overall earnings for some workers who rely on these supplements.

Possible Scenarios

With the increase in the minimum wage, employers might be incentivized to review their compensation policies to maintain competitiveness. Additionally, the introduction of a higher minimum wage could lead to a reduction in undeclared work and an improvement in working conditions for cross-border workers. However, it is important to monitor the impact of these changes on employment and the local economy, especially considering the exemptions provided for collective labor agreements (CCL).

For example, a company in Locarno that employs cross-border workers might need to review contracts to comply with the new minimum wage, increasing operating costs. However, this could also lead to greater stability and satisfaction among workers, reducing turnover and improving productivity.

Operational Checklist for Employers

• Contract Review: Update employment contracts to reflect the new minimum wage.
• Cost Analysis: Assess the financial impact of the minimum wage increase on operating costs.
• Communication to Workers: Inform employees about the changes and new compensation policies.
• Monitoring Working Conditions: Ensure that working conditions comply with the new regulations.
• Consultation with Unions: Collaborate with unions to ensure a smooth and fair transition.

Comparison of Practical Scenarios

Scenario 1: Increase in the minimum wage without exemptions

• Advantages: Improvement in purchasing power for workers, reduction in undeclared work, greater attractiveness for Italian workers.
• Disadvantages: Increased costs for employers, possible reduction in employment in sectors with high rates of undeclared work.

Scenario 2: Increase in the minimum wage with exemptions for collective labor agreements (CCL)

• Advantages: Greater flexibility for employers, possibility to maintain competitiveness in specific sectors.
• Disadvantages: Wage disparities among workers, possible exploitation of exemptions to avoid wage increases.

📊 Key Data

• Current minimum wage: 20.50 francs per hour
• Expected minimum wage for 2029: 21.75-22.25 francs per hour
• Percentage increase: 7.75%
• Additional annual earnings for a full-time worker: approximately 3,200 francs

💡 Tips for Workers

• Check your contract: Ensure your contract reflects the new minimum wage.
• Request a raise: If your current wage is below the new minimum, request an adjustment.
• Monitor benefits: Verify that the benefits included in the minimum wage calculation are adequate.

⚠️ Warnings

• Exemptions: Some sectors may benefit from exemptions, so it's important to check the specific regulations.
• Economic impact: The increase in the minimum wage could have a variable impact on the local economy, so it's important to monitor labor market trends.

"The increase in the minimum wage is an important step to improve working conditions in Ticino, but it is essential that employers and workers collaborate to ensure a fair and sustainable transition." — A Ticino trade union representative

Useful planning tools

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Key points

What to do now

Workers and employers must be aware of the new regulations and prepare for the changes scheduled to start on January 1, 2027. For workers, it's important to check if their salary will meet the new thresholds, which will be set at 4,000 Swiss francs for qualified workers and 3,300 francs for unqualified ones. If not, it's advisable to request an adjustment. For employers, it's crucial to review their pay policies and ensure they comply with the new regulations.

Operational checklist for workers

• Check your current salary and compare it with the new thresholds.
• If your salary is lower, contact your employer to discuss an adjustment.
• Use the salary calculator to get a clear idea of your situation.
• Inform yourself about your contractual conditions and the rights provided by the new regulation.

Operational checklist for employers

• Review existing employment contracts and adjust salaries according to the new thresholds.
• Inform your employees about the changes and the new contractual conditions.
• Ensure you meet the deadlines for implementing the new regulations.
• Consult the guides and resources available on the Frontaliere Ticino website for further details.

Useful tools

To calculate the new minimum wage and verify if your salary is adequate, you can use the salary calculator available on the website. Additionally, for more information on regulations and procedures to follow, you can consult the guides and resources available on the Frontaliere Ticino website.

Concrete examples

• Lugano: A qualified worker currently earning 3,800 francs will need to request an adjustment to 4,000 francs.
• Bellinzona: An unqualified worker earning 3,200 francs will need to see their salary adjusted to 3,300 francs.
• Locarno: An employer with full-time employees will need to review contracts and adjust salaries by January 1, 2027.

Comparisons between practical scenarios

• Scenario 1: A qualified worker in a company in Lugano earns 3,900 francs. With the new regulation, they will need to receive an adjustment to 4,000 francs.
• Scenario 2: An unqualified worker in a company in Bellinzona earns 3,100 francs. With the new regulation, their salary will need to be adjusted to 3,300 francs.
• Scenario 3: An employer in Locarno with full-time employees will need to review contracts and adjust salaries by January 1, 2027.

Conclusion

The approval of the compromise on the minimum wage represents an important step for Ticino, with significant implications for workers and employers. It is essential to stay updated on the new regulations and prepare for the upcoming changes. Use the available tools to verify your salary and ensure you comply with the new regulations.

"The new regulation on the minimum wage is a step forward to guarantee fair and just working conditions for all workers in Ticino."

Use the salary calculator and consult the resources available on the Frontaliere Ticino website to stay informed and prepared.

Source: ticinonews.ch