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Wage Undercutting: Nearly One in Five Companies Inspected in Violation in Switzerland

Inspections conducted in 2025 by Swiss authorities reveal a high violation rate regarding wage undercutting, particularly among companies posting workers. Unions demand stronger protective measures.

Wage Undercutting: Nearly One in Five Companies Inspected in Violation in Switzerland

The State Secretariat for Economic Affairs (Seco) has published its annual report on accompanying measures aimed at protecting wages in Switzerland.

  • Inspectors found wage undercutting, or "wage dumping", in nearly one in five companies, with a violation rate of 24% in companies posting workers in sectors covered by an extended collective labor agreement.
  • Tripartite cantonal commissions reported wage undercutting in 21% of companies posting workers and in 10% of Swiss companies inspected.
  • In 2025, approximately 38,500 companies and 147,000 individuals were inspected in Switzerland as part of these accompanying measures.

For candidates and employees, this report highlights the importance of checking one's salary against the applicable collective agreement in their sector before signing a contract, especially in sectors employing posted labor.