Salaries and Minimum wages in Switzerland
What is the minimum wage in Switzerland?
If you’re curious, here is the answer: Does Switzerland have a minimum wage? We must mention that the minimum wage in Switzerland is not set. A referendum in Switzerland in 2014 suggested setting the minimum wage at CHF 22 per hour, or CHF 4,000 per month. However, the move was rejected – even though it was higher than other European countries. This issue is still a problem to this day.
The Organisation for Economic Cooperation and Development (OECD) has found that Switzerland has one of the highest minimum wages in the world, at CHF 6,500 monthly.
Who decides the minimum wage for Switzerland?
The wages are determined between the employer (and the employee) even though the government has failed to set a minimum salary for Switzerland. There are, however, differences between the sectors.
Variations in the minimum wage in Switzerland
Many Swiss cantons have approved minimum wages. In 2017, Neuchatel, Jura and Jura approved a minimum wage. The minimum wage is CHF 20 an hour. In 2020, Geneva voters set the highest minimum wage in the world at CHF 23 an hour through a referendum. Basel, a German-speaking canton in Switzerland, was the first to establish a minimum wage of CHF 21 an hour. On the other hand, the cantons of Winterthur and Kloten are working to develop a minimum wage of CHF 23 an hour.
Minimum wage calculator in Switzerland
To find out how much you could earn by working in Switzerland, the State Secretariat for Economic Affairs has a wage calculator. It uses your age, sector, and qualifications (education, training, experience, etc.) to calculate your minimum wage. Based on where you intend to work.
The minimum wage in Switzerland is lower than in other countries’
Switzerland ranks among the top 4% of countries with the highest minimum wages. International Currency reports that Switzerland’s annual minimum wage is CHF 14 089 or USD 15 457. Eight countries have a lower minimum wage than Switzerland: Denmark (44,252.00), United Kingdom (22,597.00), Luxembourg (19,426.00), Netherlands (19,335.00), Ireland (18,965.00), France (17,701.00), New Zealand (16,462.00) and San Marino (15,707.00).
Average Salary in Switzerland
The highest-paid workers in the world have been Swiss over the past decade. The average income in Switzerland is CHF 64.824, according to OECD. It has remained steady over the years.
If you are interested in a job in Switzerland, it is essential to know that the average salary varies by sector, job function, education level, and years of experience.
The average salary in Switzerland, by sector
The following table is based on data from the Swiss Federal Statistics Office (FSO) in 2018. It shows that the average monthly Swiss salary in various sectors was as follows:
Average Swiss salary by job function
Below is the average monthly salary for various jobs in Switzerland, based on full-time contracts from Lohncomputer. The canton determines the wage so that you will get more or less. You’ll earn more in larger cantons like Basel, Geneva, or Zurich.
Based on years of experience, the average salary in Switzerland
Another critical factor that influences the salary is years of experience. Higher wages are associated with more years of experience.
Experienced employees with two- to five years of experience earn 32% more than those just starting in any industry or discipline. However, professionals with more experience than five years are paid 36% more than those with five years or less. The salary of employees who work for more than ten years increases by 21% and an additional 14 % for those who have worked for more than 15 years.
Base salary in Switzerland based on the education level
Everyone can agree that earning a degree can help increase your income. Your education level can also impact your salary. A diploma or certificate makes 17% more than those with high school education. A bachelor’s degree is 24% better than a certificate/diploma. A master’s degree is worth 29% more to professionals who can earn it. However, employees with a Ph.D. are 23% more likely to be employed in the same field than those with a bachelor’s degree.
There are regional variations in the average Swiss salary
The salary changes can be very different from one place to the next. Switzerland is home to significant regional variations in the number of salaries. Below, we will show which regions pay more or less than the national average.
Switzerland’s Economic Outlook
Switzerland will experience a higher average growth rate in 2022 after undergoing an economic growth of +3.5% in 2021. According to the State Secretariat for Economic Affairs, 3% growth in the gross domestic product (GDP), with supply chain issues and new health measures resulting from Omicron, a new variant of Covid-19, is expected.
Companies in the social and health sectors are having difficulty finding skilled workers. SECO predicts that Switzerland’s unemployment rate will fall from 2.4% in 2022 to 2.3% by 2023.
Switzerland has the highest average salary and minimum wage. Different levels of education and experience are considered when calculating the country’s compensation.