Salary in kind

The CO gives the contracting parties (of employment contracts or apprenticeship contracts) complete freedom to provide for a partial or total salary in kind, i.?e. a salary that is not paid in cash. However, a salary that is paid in kind in full no longer exists nowadays.

The provision of room or board is a typical example of a partial salary in kind. The Swiss Code of Obligations provides for the notion of salary in kind when the learner lives at the employer’s household, unless there is an agreement or customs to the contrary. It should be noted here that, in this particular case, the employer is required to pay the total salary to the apprentice during holiday leave and an equivalent compensation for the salary in kind.

In an endeavour to lay down clear provisions and avoid any disputes, the contracting parties are advised to agree on a salary and to establish in a separate agreement the question of room and board, for example in accordance with Old-Age and Survivors Insurance (OSI) standards. Services in kind can thus be deducted from the salary.