Salaries in Switzerland are paid once a month and are often based on a 13-month system. That means an annual salary is paid out in 13 instalments: one a month until the end of the year when a worker receives two instalments. Working less than a full year means the 13th month payment is typically paid on a pro-rata basis. It is not the same as a bonus.
More
More
How far does CHF6,000 really get you in Switzerland?
This content was published on
When travelling abroad, especially to countries with much lower wages, the Swiss may immediately try to change the subject, or even lie shamelessly, when asked how much they earn. How to explain that your monthly income of CHF5,500 to CHF6,500 ($5,520 to $6,530) simply cannot be compared with the salaries earned by those around you? …
There is no national minimum wage in Switzerland, although some cantons and industries have set a lowest limit. Gross salary is usually negotiated during the job interview, before a contract is signed. It represents the amount of money to be earned before deduction of sums for compulsory social contributions.
The following deductions are made from the employee’s income (net salary) before it is paid:
– old-age and survivors’ insurance (the first “pillar” of the old-age pension scheme)
– occupational pension provision (the second “pillar” of the old-age pension scheme)
– disability insurance
– income loss insurance
– unemployment insurance
– non-occupational accident insurance
The amounts deducted may vary depending on the canton and the employee’s age, salary and employment rate. Employers also contribute to these social insurance payments.
After taking home their wages, most employees will still have to pay two mandatory contributions: taxes and health insurance.
More
What is a good average salary in Switzerland?
If you are a male banker, a Swiss diplomat or a foreign CEO in Switzerland, chances are you are living quite comfortably.
The median gross salary in Switzerland is CHF6,500 ($6,700) a month. However, a female machine operator earns around CHF4,500 a month, while a male manager nets over CHF10,000.
There is still a marked gender wage gap in Switzerland: woman earn on average 11.5% less than men. This inequality is even greater at the managerial level – even though equal pay is enshrined in the Federal Constitution and the Gender Equality Act.
More
More
Minding the gap between the sexes in Switzerland
This content was published on
Equal rights may be enshrined in the constitution, but from the workplace to the home, inequality between men and women persists.
In international comparison, Switzerland has one of the highest average salaries among OECD countries. However, the cost of living is also particularly high: taxes, housing, transport and health insurance eat up a large part of that income. Nonetheless, Swiss households have among the highest purchasing power in Europe.
More
More
Income in Switzerland: how much is saved, how much is spent?
This content was published on
Around one-third of gross income goes towards paying taxes, social security contributions, and obligatory health insurance.
The high cost of living in Switzerland puts people with low incomes at a particular disadvantage. Statistics show that households with a gross monthly salary of less than CHF5,000 can’t set aside any savings. Moreover, living costs tend to increase while wages stagnate, which puts a strain on low-paid workers, who make up some 12% of the economically active population.
For more information on salaries in Switzerland, see:
‘Antisocial’ tax policies blamed for growing wage gap
This content was published on
In its latest report on wealth distributionExternal link, published on Wednesday, the federation highlighted a growing income gap. “The hope that, following the financial crisis, the wage excesses of top earners would be corrected has been shattered,” said the federation’s economist Daniel Lampart. “Although low and medium wages have increased, higher taxes have almost completely…
Basic income plan clearly rejected by Swiss voters
This content was published on
Official final results show the proposal winning 23.1% of the vote and all the country’s 26 cantons coming out against. Only one commune in western Switzerland and a few districts in the cities of Geneva and Zurich came out in favour. “The campaigners failed to present a convincing funding scheme for their proposal. But they…
This content was published on
In Sunday’s nationwide vote 76.3% of voters were against the initiative. Voter turnout was 55.5%. Under the initiative, someone on a minimum wage in Switzerland would have earned double the rate in Britain or the United States. Although high, the Swiss limit was set against the country’s high cost of living, where the median hourly…
This content was published on
One of the aims of the “Pro Public Services” initiative is to restrict wages to the same levels as those earned by civil servants and other people who work directly for the federal administration. For example, chief executives should not earn more than a government minister (CHF475,000), according to the initiative. Swisscom boss Urs Schaeppi…
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.