Practical Information

Salaries

Switzerland ranks at the top of the highest salaries in the world. The median gross monthly salary in 2006 was 5.674 CHF, with women earning an average of 4.926 CHF per month, and men 6.076 CHF.

Most surveys estimate that salaries for both skilled and unskilled workers in Switzerland are generally two or three times higher than in most other European countries. A UBS bank cost of living study, Prices and Earnings 2008, of 71 cities worldwide found that the Swiss cities of Zurich and Geneva have the highest gross pay in the world.

An average of all fields shows that real wages increased very little since the early 1990s. Pay levels vary greatly according to the different economic areas, with Zurich, Geneva and Basel being highest overall, and Ticino lowest. In certain sectors, such as finance, pharmaceuticals and insurance, wages are significantly higher than in others.

Working out what an appropriate salary is for your profession can be challenging in Switzerland, as the Swiss consider it rude to talk about money and salaries. In most cases, salaries are negotiable and it’s up to you to make sure that you receive an appropriate salary based upon your qualifications and experience. However, in Switzerland wages are commonly known to be set according to the principle of seniority. Many Swiss companies are reluctant to pay people under age 30 a top salary, irrespective of their qualifications or experience.

Despite the fact that Swiss employers are legally required to pay equal wages to men and women, women’s wages are, on average, 20 percent less than those of their male counterparts, regardless of qualifications or experience. The United Nations estimates that women make an average annual salary of $25,000 to men’s $41,000 for similar work. The gap is larger in the private sector than in the public one. In public administration, the disparity in pay is 10 percent, in small companies 15,7 percent, in medium-sized ones 20,4 percent and in large ones 30,8 percent.

Salaries are generally reviewed once a year in November or December, with pay raises taking effect from 1st January of the following year. Most employers give out an extra month’s salary as bonus payment in December.