December 3, 2020

Geneva in Switzerland is introducing a minimum wage of $25 an hour, the highest in the world

http://feedproxy.google.com/~r/typepad/alleyinsider/silicon_alley_insider/~3/vSwONrPzkAE/switzerland-geneva-introduce-minimum-wage-highest-in-world-2020-10
  • The canton of Geneva, Switzerland, voted to introduce a minimum wage of 23 Swiss francs ($25) an hour.
  • This means full-time workers will earn at least 45,264 Swiss francs a year, or $49,386.
  • That’s more than three times the US federal minimum wage of $7.25, though states and cities have implemented higher minimums.
  • Visit Business Insider’s homepage for more stories.

Voters in the Swiss canton of Geneva have voted to introduce a minimum wage of 23 Swiss francs ($25) an hour — making it the highest in the world.

Just over 58% of voters in the canton — an administrative region that includes the city of Geneva — voted for that minimum wage, according to government data published September 28.

They were asked to answer yes or no to the question: “Do you accept the popular initiative ’23 francs is a minimum’?”

Paying workers the new wage, based on Switzerland’s average 41-hour working week, would give workers a minimum monthly salary of 3,772 Swiss francs ($4,115) and minimum annual salary of 45,264 Swiss francs ($49,386), according to Business Insider’s calculations.

Geneva’s minimum wage is more than triple the US federal minimum wage of $7.25 and more than double the UK minimum wage of £8.72, or $11.28, for people 25 and over.

(Many US cities and states have separate, higher minimum wages.)

The new minimum wage will go into effect on November 1, and will benefit about 6% of the commune’s workers, CNN cited Geneva State Counselor Mauro Poggia as saying. Switzerland does not have a national minimum wage — that is decided by individual cantons instead.

$25 an hour is the highest minimum wage in the world. As of 2019, Australia paid the highest national minimum wage, equivalent to $12.60 an hour, according to the Organisation for Economic Co-operation and Development.

The city of Geneva, the capital of the canton, has long been one of the most expensive in the world, according to multiple rankings. The Economist Intelligence Unit reported earlier this year that one kilogram of bread costs an average of $5.62 and a women’s haircut costs $93 in the city.

The vote to introduce a minimum wage followed the coronavirus pandemic hitting its retail and travel sector hard, according to The Guardian

Michel Charrat, the president of a group that supports workers in the French-Swiss border, told the newspaper that the pandemic “has shown that a certain section of the Swiss population cannot live in Geneva.”

He said paying people at least 4,000 Swiss francs a month “is the minimum to not fall below the poverty line and find yourself in a very difficult situation.”

Switzerland entered a recession in the third quarter of 2020 due to economic losses in the coronavirus pandemic.

Prior to this year’s vote, Geneva voted twice — in 2011 and 2014 — to reject introducing a minimum wage to the canton.