Minimum wage in lawsuits

Under Swiss debt collection law, the minimum subsistence level is a key concept designed to ensure that the debtor maintains a decent standard of living, while balancing the interests of the creditor. It is an inalienable sum of money that the debtor must retain to meet his or her basic needs, even in the event of income seizure. This concept reflects Switzerland’s commitment to protecting the human rights and dignity of every individual, regardless of their financial situation.

The minimum subsistence level in Switzerland is governed by two main pieces of legislation. On the one hand, the Swiss Code of Obligations (CO) contains general provisions governing contractual obligations between parties. Secondly, the Federal Debt Collection and Bankruptcy Act (LP) specifically regulates debt collection and bankruptcy proceedings, including the rules governing the minimum subsistence level. In addition, cantonal legislation may also play a role, as certain cantonal specificities may influence the implementation of the minimum subsistence requirement, particularly with regard to its calculation.

The main purpose of the minimum subsistence requirement is to protect the debtor’s basic economic existence. By guaranteeing an inalienable sum for vital needs such as food, housing, healthcare and education, the law ensures that the debtor can continue to lead a dignified life, despite legal proceedings. This underlines the Swiss philosophy of social protection and individual responsibility. At the same time, the concept seeks to balance the rights of the creditor, allowing debts to be recovered insofar as this does not hinder the debtor’s fundamental rights. The subsistence minimum, in this context, therefore acts as a balancing mechanism between the conflicting rights of the creditor to recover debts and the debtor to maintain a basic standard of living.

Calculation of the minimum subsistence figure in lawsuits

Calculating the minimum subsistence level requires a careful assessment of the various components. This includes basic needs such as food, housing, clothing and heating, which are essential to guarantee a basic standard of living. Professional costs, such as transport and employment-related expenses, are also taken into account. Social insurance and health costs are another vital aspect of the calculation, providing protection against major risks such as illness and disability. Cantonal differences may also exist in the calculation of the subsistence minimum, reflecting regional variations in the cost of living and other specific factors.

The methodology for calculating the subsistence minimum varies according to individual circumstances, and may involve a flat-rate approach or an individual approach. The flat-rate approach applies standardized norms based on general criteria such as household size and place of residence. The individual approach, on the other hand, enables a more detailed assessment of the debtor’s specific needs and expenses. In both cases, the aim is to ensure that the minimum subsistence level is sufficient to cover essential needs without being excessive. Examination of relevant court decisions can also inform the calculation methodology, providing precedents and guidance.

Some special cases require special attention when calculating the minimum subsistence figure. For example, debtors with dependents, such as children or the elderly, may require adjustments to take account of their additional needs. Similarly, exceptional situations, such as serious illness or disability, may require a more nuanced assessment of the subsistence minimum to reflect the increased costs and needs associated with these conditions.

Contesting the subsistence minimum

In certain circumstances, the debtor may contest the amount set as the minimum subsistence level if he or she feels that it has been calculated inadequately. The challenge can be initiated by following the legal channels available, which generally require the debtor to lodge a claim with the competent authority. Evidentiary requirements play a crucial role in this process. The debtor must provide convincing evidence to justify adjustments to the subsistence minimum, such as documents proving exceptional expenses, special medical needs, or other circumstances that necessitate a reassessment of the amount.

The creditor may also initiate a dispute concerning the minimum subsistence level. In this case, the creditor may argue that the debtor has provided incorrect or incomplete information concerning his income or expenses, or that he has undeclared assets. The legal basis for such a challenge must be firmly established, and the creditor must provide sufficient evidence to support his claim. Proof of hidden assets or the existence of undeclared property may include items such as bank statements, tax documents or other supporting documents. Successful contestation by the creditor may result in a revision of the minimum subsistence amount set for the debtor.

The social and economic impact of the subsistence minimum

The subsistence minimum plays a vital role in protecting debtors from extreme poverty. By guaranteeing a basic standard of living, it preserves human dignity and prevents debtors from being reduced to a state of total destitution. It also enables debtors to pursue financial rehabilitation, leaving them with sufficient resources to seek employment, train or set up a business. The minimum subsistence level thus represents a lifeline for debtors, enabling them to remain active and productive members of society.

On the other hand, the minimum subsistence level also influences creditors’ ability to collect their debts. By setting a limit on what can be seized, it protects debtors but can also restrict the options available to creditors in collecting their debts. This can, in some cases, make the collection process longer and more costly. Nevertheless, the balance with debtor protection is a fundamental concern, reflecting the principles of social justice that underpin the Swiss legal system.

The concept of a subsistence minimum is part of a broader economic and social perspective. It contributes to economic stability by preventing debtors from falling into poverty and helping them to remain economically active. It also brings the Swiss legal system into line with international human rights standards, by ensuring that debtors are not deprived of basic means of subsistence, even in the event of prosecution. The minimum subsistence level therefore reflects not only a legal and economic concern, but also a social and ethical value deeply rooted in Swiss society.