Real wages in Switzerland rise for the first time in 3 years

A new report from the Federal Statistical Office (FSO) has found that real wages in Switzerland rose in 2024. A combination of stable salary growth and falling inflation means earnings in the alpine nation have increased for the first time in three years.

Salaries in Switzerland rise above inflation

According to the data, salaries in Switzerland rose by 1,8 percent on average in 2024, a 0,1 percentage point increase compared to 2023. With annual inflation (1,1 percent) being nearly half what it was the year before, the FSO found that real wages rose by 0,7 percent, the first positive result seen since 2020.

The news follows three straight years of falling purchasing power in Switzerland. Real wages failed to rise in 2021 (-0,8 percent), 2022 (-1,9 percent) and 2023 (-0,4 percent), a phenomenon the government blamed on high inflation caused by the end of the COVID pandemic and the energy crisis caused by the Russian invasion of Ukraine.

While most workers saw the number on their payslips grow in the last year, the FSO noted that salary gains were not universal. Real wage growth across the economy varied from peaks of 3,8 percent in some sectors to lows of -1,5 percent in others.

Which job sector saw the biggest increase in real wages?

In 2024, the manufacturing sector saw the biggest rise in real wages, especially those involved in the creation of rubber and plastic products at 4,9 percent. Other sectors that saw particularly strong wage increases last year were repairs and installations (3,4 percent), the postal service (3 percent), in the healthcare system (3 percent) and among insurance providers (2,5 percent).

By contrast, wage rises were at their lowest in the “publishing, audiovisual and broadcasting, telecommunications” and the “other economic activities” sectors - the latter referring to areas of trade, transport, hospitality and other services which don’t fit neatly into the other sectors.

2024 also saw the wage gap continue to close between women and men. In 2024, women saw nominal wage increases of 2,4 percent on average, compared to an average of 1,2 percent for men.