From Geneva to Hanoi: Pay Floor Debates Intensify as Switzerland Faces Referendum, Germany Sets Sectoral Rates, and Vietnam Rethinks Zonal Wages

Swiss unions launch referendum to protect regional minimum wages; Germany raises pay to €13.90, care sector to €21; missed EU deadline raises litigation risk; Vietnam weighs living wage.

Swiss unions have declared war on a planned law change that would let national collective agreements override regional minimum wages. On 5 June 2026, the Swiss Trade Union Federation (SGB) announced it would launch a referendum against the proposal, which it describes as a "taboo breach."

At stake are local wage protections such as Geneva’s 24.59 Swiss francs per hour minimum or the Tessin’s 20-franc floor — safeguards the SGB calls essential social safety nets. The final parliamentary vote is scheduled for 19 June 2026.

Meanwhile in Germany, a cascade of pay adjustments is set to take effect over the next 18 months. From 1 January 2026, the national statutory minimum wage rises to €13.90 per hour. The mini-job threshold climbs dynamically to €603 per month (€7,236 annually), while midi-jobs will cover earnings between €603.01 and €2,000 per month.

The care sector gets its own steeper ladder. Starting July 2026, the minimum rate for qualified nursing professionals jumps to €21.03 per hour; for assistant staff it reaches €16.52. Additional adjustments are already pencilled in for mid-2027.

Germany’s missed EU pay transparency deadline adds pressure. The federal government failed to transpose the EU Directive on Pay Transparency by the 7 June 2026 implementation date, with coalition infighting blamed for the delay. Labour lawyers are now warning employers about rising litigation risks. A recent ruling from the Federal Labour Court (Bundesarbeitsgericht) sharpened the threat: it found that even a single better-paid male colleague can create a presumption of pay discrimination.

Separately, the Verdi union is pushing its own demands in retail and wholesale trade. Verdi is calling for a minimum hourly wage of €14.90 plus a 7 percent pay increase. Employers have offered far less over longer contract terms. Strikes have hit chains including Rewe, Edeka, Lidl and Kaufland.

One bright spot: utility workers have already secured a deal. Around 135,000 employees at municipal utilities, energy companies and water suppliers received a 1.25 percent pay rise starting 1 June 2026. Salaries in the sector now range from €2,604 to more than €9,900, with the agreement running until March 2027.

Halfway around the world, Vietnam is wrestling with its own geographic pay gaps. The country operates four minimum-wage zones, with monthly rates spanning 3.7 million to 5.31 million Vietnamese ??ng. Labour representatives argue that workers in neighbouring zones face identical living costs yet receive different wages. Their goal is a living wage rather than a rigid geographical split. The government is currently reviewing possible adjustments for 2027.