Understanding EO Payments

EO payments refer to the payment of salary during military and civilian service. The EO is an ordinance on military pay supplements and governs the earnings of military and civil defense personnel. According to the EO's provisions, people on active military duty (including members of the Women's Armed Forces and the Red Cross) or in civilian service are entitled to receive earning compensation for every paid or accredited day of service.

If this compensation is equal to 80 percent of an employee's salary, the employer does not need to make any additional payments. However, if this EO compensation replaces less than 80 percent of the effective earning, the employer is obliged to make up the difference to 80 percent of the salary for a limited period. This time period is defined according to the Basel, Bern, and Zurich scales.

When the limited period has expired, the employer is exonerated of further salary payments, and the employee may then only claim EO compensation. General work contracts or individual agreements may help to secure more favorable compensation for the employee.

The PeopleSoft system delivers a query that you can run to view the names of all delivered elements designed for Switzerland. Instructions for running the query are provided in the PeopleSoft Global Payroll PeopleBook.