Bullish Maze

30,000 Zurich City Employees Receive Double Salaries: A Costly Banking Glitch

In an unprecedented incident, the city of Zurich inadvertently paid its 30,000 employees double their February salaries. The blunder was attributed to a technical processing error by Zurich Cantonal Bank (ZKB), which handles the city’s salary transfers. Here are the details:

The Double Payment Debacle

• Date: February 26, 2024
• Mistake: ZKB triggered the payment of February salaries twice, resulting in the double salary deposits.
• Administration: The city administration had executed everything correctly, but the glitch occurred at the bank level.
• Repayment Obligation: Unfortunately, the 30,000 city employees who received the extra salaries cannot celebrate. They are obliged to repay the second salary paid in error.
• Staggering Overpayment: The total overpayment amounts to a whopping CHF 175 million (approximately $199 million).

Working Toward a Solution

ZKB and the city authorities are currently collaborating to find the most straightforward solution for repayment. While the unexpected windfall may have briefly brightened the day for employees, the subsequent repayment process is likely to be less joyful.

This incident serves as a stark reminder of the importance of robust financial systems and rigorous oversight. As Zurich grapples with rectifying this costly mistake, it underscores the need for vigilance in managing payroll processes and safeguarding against such errors.

The lesson? Even in a city known for its precision and efficiency, glitches can disrupt the best-laid plans. Let’s hope that the resolution is swift and equitable for all parties involved