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No real wage growth expected in 2024: UBS survey

Money in purse
Real wages are unlikely to rise this year, according to a UBS bank survey. © Keystone / Christian Beutler

Purchasing power in Switzerland is likely to remain under pressure next year. Companies surveyed by UBS want to pay their employees more wages for 2024, but higher salaries cannot compensate for the inflation.

Specifically, the 389 companies surveyed as well as employer and employee associations expect an average wage increase of 1.9% for 2024.

Taking into account inflation expected at around 2%, real wages are therefore unlikely to rise next year, according to the conclusion published on Wednesday Salary survey by the major bank UBS.

“The majority of companies grant compensation for inflation, but rarely go beyond that,” says UBS economist Florian Germanier, summarizing the survey results. Real wages are therefore likely to practically stagnate on average in 2024.

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SWI swissinfo.ch - a branch of Swiss Broadcasting Corporation SRG SSR