The government has implemented a new law that will oblige large companies in Switzerland to review pay gaps between male and female employees, starting from next year. 

This move forms part of Switzerland’s efforts to tackle gender inequality. Switzerland, although ranking as one of the richest countries around the world with a high quality of life, does not succeed as much as other developed economies with regards to work equality. 

Government data reveals that the discrimination gap, which refers to pay differences that cannot be explained by rank or role, has worsened since 2000 – despite registering better results from 1991. Currently, female employees generate a salary around 20% lower than their male counterparts. 

As a result, hundreds of thousands of women decided to strike in June to express their disagreement with current data. 

On Wednesday, the cabinet responded to this issue by ordering companies employing 100 or more staff to carry out analyses of pay gaps with their company. 

These studies must begin from next year and be completed by June 2021, and will include an external audit of the numbers which have to be presented to staff. 

The companies that do find a gap will be obliged to repeat the exercise every four years.