24 minutes agoSwiss salaries to be raised in 2025
Periskopi(2 years ago)
(2 years ago)In 2025, many wage earners will see their salary increases. However, increases may not be enough to cover rising costs, in particular increasing health insurance prices. Who will get more pay next year? Migros and Coop, the two biggest private employers of [...]
In 2025, many wage earners will see their salary increases. However, increases may not be enough to cover rising costs, in particular increasing health insurance prices.
Who will get more pay next year? Migros and Coop, Switzerland's two biggest private employers, have announced salary increases from 1% to 1.3%, the SRF reported.
Denner, who is part of the Migros group, has said he will raise wages by 1.1% next year. Airline Swiss, another major employer, has announced a 2% wage hike. Other wage increases have not yet been announced or negotiated. Swiss Railways remain in negotiations for wages, broadcasts albinfo.ch.
Given a salary poll conducted by the UBS bank in November 2024, salaries are expected to rise by an average of 1.4% next year. Another survey conducted by Switzerland's Federal Institute of Economic Research (KOF) estimates an average salary increase of 1.6% in 2025.
Sectors with the highest expected wage growth include IT and telecommunications, followed by energy, chemicals and pharmaceuticals sectors. Those working in IT and telecommunications are expected to receive a 2% raise. Those who work for retail and media will likely see less, according to UBS.
How do these increases compare to inflation? The National Bank of Switzerland (SNB) forecasts 0.6% inflation in 2025. Average wage increases are above this rate, so real wages will increase next year. However, recent wage increases have not kept pace with inflation, leaving Swiss wage workers in worse condition in real terms. Developing real wages (the salary increases less inflation) over the past three years has been negative. Average real salaries dropped by 0.8% in 2021, with 1.9% in 2022 and 0.4% in 2023. Together these add a 3.1% drop in real wages. At the same time, Switzerland has historically experienced deflation, which increases real wages. That was in 2020 when inflation was -0.7%. If this is included, the decline in the average real salary is 2.4%, assuming that no wage increase has been received in 2020, transmits albinfo.ch.
In this context, the Federation of Swiss Unions is calling for a total increase in salaries of 5% and a minimum wage increase. In response, the employer's association says that demand is unrealistic.
