Is there a minimum wage in the canton of Aargau?

There is no minimum wage set by Swiss federal law. Some cantons have established a minimum by law or ordinance, but the canton of Aargau does not have a cantonal minimum wage imposed by law. However, collective bargaining agreements in the various sectors often set effective wage minimums which, in fact, protect workers from too low wages. If your industry is covered by a CCL, check what the minimum level is under the contract and make sure your employer respects it.

What is the 'coordinated salary' in the LPP and how does it affect my paycheck?

The LPP (occupational pension/BVG) calculates contributions on a portion of the salary called 'coordinated salary', which is the gross salary net of a fixed deduction. The LPP provides for increasing contributions with age: 7% (25-34 years), 10% (35-44), 15% (45-54), 18% (55+ up to reference age). These amounts are deducted directly from your paycheck and go to fund your mandatory retirement account at your employer's corporate or group pension fund.

If I work in Aargau but reside in another canton, what taxes do I pay?

If you work in Aargau but reside in another canton, you are generally taxed according to the canton of residence for cantonal and municipal taxes, while direct federal tax is the same throughout Switzerland. The employer exercises withholding taxes according to the tables of the tax authority of your canton of residence. It is advisable to check with the local tax office to ascertain the exact tax breakdown in your specific case.

Are AVS, AI and LPP contributions deducted even if I have just started working?

Yes. AVS/AI and LAA contributory obligations start from the moment an employment relationship begins and the employer is obliged to pay them regardless of the duration of the employment. The LPP generally has a minimum age of entry (often 18-24 years) and a coordination deduction that limits the contribution on lower wages. If your salary is very low, you may not be covered by the LPP, but you always remain covered by AVS/AI.

If my employer does not apply the collective agreement, am I entitled to appeal?

Yes. If your employer violates the terms of an applicable CCL, you may complain to the relevant trade union association (if registered) or document the violation to the cantonal mediation authority or cantonal court. It is advisable to compare your paycheck with the terms of the contract and seek legal or trade union assistance before taking legal action.

Wages and labour market canton Aargau (cross-border guide)

Di Redazione Frontaliere Ticino · Published on 3 September 2026

Swiss business district with modern offices and workers representing labor market and employment

How the labour market works in Aargau: wages, entitlements, collective agreements and social security contributions according to Swiss federal law.

Context

In brief

Federal labor market: max 45 hours/week (industry/offices/sales), 50 hours other sectors
AVS/AI contributions: 5.3% employee, 10.6% total with employer
Minimum vacations: 4 weeks (5 for workers under 20)
No federal minimum wage; some cantons set their own minimum

Key facts

What: Worker rights and protections under Swiss federal law
When: Current legislation; contributions paid continuously during employment
Where: Canton of Aargau, subject to Swiss federal law
Who: Private sector employees (industry, trade, services)
Maximum hours: 45 hours/week (industry/offices/sales); 50 hours other sectors
Minimum vacations: 4 weeks annually; 5 weeks for minors under 20
Protected leaves: Maternity 14 weeks at 80%; paternity 2 weeks

The labor market in the canton of Aargau is regulated by the Swiss federal system, which ensures uniform working conditions, protections, and rights regardless of the canton of employment. A notable feature of Swiss labor law is the absence of a federal minimum wage—a regulatory choice that allows individual cantons to set their own. In the context of Aargau, as in any other canton, wage levels are primarily determined by market dynamics, sectoral collective labor agreements, and the degree of professional training and specialization of workers.

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Operational details

Collective agreements and wage structure

Collective labor agreements (CCL) represent the main mechanism for determining wages in various sectors of the Swiss economy, including the canton of Aargau. Where there is no federal minimum wage, these agreements — negotiated between employers' associations and trade unions — establish minimum wage levels, salary progression margins, and additional benefits for specific categories of workers. In Aargau, as in other industrialized cantons, CCLs cover a significant portion of the labor market, ensuring a certain standardization of wages even in the absence of a legally imposed minimum.

The federal contribution structure we have described — AVS, AI, AD, IPG, LAA, and LPP — represents a substantial portion of the gross salary, normally between 12% and 15% for an average worker, depending on age and sector of activity. This means that an agreed gross salary translates into a lower net pay after the deduction of these mandatory contributions. In addition to this layer of mandatory deductions, federal, cantonal, and municipal taxes are added, which vary depending on the canton of residence. The canton of Aargau applies its own tax rates at the cantonal level, to which the municipal multipliers established by the individual communes of Aargau are added. A person who works and resides in Aargau will therefore pay both federal social security contributions and cantonal and municipal taxes of Aargau.

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Key points

How to navigate the Swiss system: practical procedure

For those starting to work in Aargau or changing jobs within the canton, it is essential to understand how the payslip is structured and what rights are guaranteed by federal law. First, check if your sector is covered by a collective labor agreement: most major sectors are. If so, your employer is legally obliged to respect the minimum wages and conditions set out in the CLA. This means that your salary cannot fall below the level set by the collective agreement.

Second, carefully examine the payslip you receive. You should clearly see:

The agreed gross salary
Deductions for AHV/AI (5.3% as an employee)
Deductions for AD and IPG (1.1% up to the annual maximum)
Deductions for LAA (0.7–1.5% depending on the sector)
LPP contributions (variable by age group: 7%, 10%, 15%, 18%)
Withholdings for federal direct tax and cantonal/communal taxes
The final net salary you receive monthly

If you notice discrepancies or do not recognize some items, ask for clarification from the human resources department: it is your right to fully understand your salary.

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Frequently Asked Questions

Is there a minimum wage in the canton of Aargau?: There is no minimum wage set by Swiss federal law. Some cantons have established a minimum by law or ordinance, but the canton of Aargau does not have a cantonal minimum wage imposed by law. However, collective bargaining agreements in the various sectors often set effective wage minimums which, in fact, protect workers from too low wages. If your industry is covered by a CCL, check what the minimum level is under the contract and make sure your employer respects it.
What is the 'coordinated salary' in the LPP and how does it affect my paycheck?: The LPP (occupational pension/BVG) calculates contributions on a portion of the salary called 'coordinated salary', which is the gross salary net of a fixed deduction. The LPP provides for increasing contributions with age: 7% (25-34 years), 10% (35-44), 15% (45-54), 18% (55+ up to reference age). These amounts are deducted directly from your paycheck and go to fund your mandatory retirement account at your employer's corporate or group pension fund.
If I work in Aargau but reside in another canton, what taxes do I pay?: If you work in Aargau but reside in another canton, you are generally taxed according to the canton of residence for cantonal and municipal taxes, while direct federal tax is the same throughout Switzerland. The employer exercises withholding taxes according to the tables of the tax authority of your canton of residence. It is advisable to check with the local tax office to ascertain the exact tax breakdown in your specific case.
Are AVS, AI and LPP contributions deducted even if I have just started working?: Yes. AVS/AI and LAA contributory obligations start from the moment an employment relationship begins and the employer is obliged to pay them regardless of the duration of the employment. The LPP generally has a minimum age of entry (often 18-24 years) and a coordination deduction that limits the contribution on lower wages. If your salary is very low, you may not be covered by the LPP, but you always remain covered by AVS/AI.
If my employer does not apply the collective agreement, am I entitled to appeal?: Yes. If your employer violates the terms of an applicable CCL, you may complain to the relevant trade union association (if registered) or document the violation to the cantonal mediation authority or cantonal court. It is advisable to compare your paycheck with the terms of the contract and seek legal or trade union assistance before taking legal action.