Switzerland considering world’s highest minimum wage

Switzerland is to hold a referendum on whether to approve an initiative to instate a minimum wage of 4,000 Francs or €3274 a month, the world’s highest.

The Swiss Trade Union Federation submitted the referendum "to protect equitable pay" in 2012 in keeping with Switzerland's tradition of direct democracy. Voters in the country who collect 100,000 signatures can force a binding referendum on any issue.

If approved, the measure would raise the hourly salary in Switzerland to around €18 an hour. The measure is backed by the Socialist and Green parties. Advocates of the motion argued that this is a necessary measure justified by high living costs.

However, critics – who include government ministers – have fought against this measure arguing that such a high minimum wage could damage the economy, making small companies obsolete and making it harder for young people to find work.

Referendum projections suggest that Sunday’s vote will be rejected by two-thirds of Swiss voters. Advocates of the motion argue that it is a necessary measure, while critics argued that such a high minimum wage will have a detrimental effect on the Swiss economy.

The measure would affect around 300,000 people – around 10% of the population – many of whom are in agricultural or service work. Currently the average salary in Switzerland is €29,000 a year and over half the Swiss population earn over €5,000 per month.

Surveys suggest that Sunday's vote will end with two-thirds of Swiss voters rejecting the motion. Critics argue that such a high minimum wage could damage the economy, but supporters say the move is justified by high living costs.