If you are working in Switzerland, you will need to know the key terms associated with your salary. Additionally, you will also need to know what the average salary in your locality is and what kind of salary you can expect if you are looking for a job. Here's what you need to know about salaries and average income in Switzerland.
Salaries in Switzerland
When we are talking about salaries in Switzerland, there is a big difference between gross and net salary, which you should bear in mind for salary negotiations with any potential employer.
Gross salary
Your gross salary is the total amount of salary that you are paid before any deductions are made. The amount agreed upon will be detailed in your employment contract as either a monthly or annual sum - although bear in mind that some employers offer a 13th month of salary, usually paid during January alongside your normal wage. When you are negotiating a salary in Switzerland, you will always be talking in terms of a gross salary.
Net salary
Your net salary is the amount of money that you will receive from your employer once all deductions have been made, including contributions to the social security system and your pension. The net pay will be the amount you will receive every month.
One unsual facet of the Swiss tax system that you should bear in mind is that - unless you are subject to wage tax - your tax contributions are also paid from your net salary, rather than your gross salary. Each year after you complete a tax return, you will be sent a tax estimation to be paid in monthly instalments.
Net salary calculator for Switzerland
Switzerland has a large amount of variation when it comes to taxes and social security. Often, it is the responsibility of your local council (Gemeinde) to determine the level of tax. In addition, many urban cantons have larger social security systems and will demand more. In order to help, the Federal Tax Administration has a tool to assist in calculating what your total taxes will be.
Average salary in Switzerland
As of 2022, according to the Swiss Federal Statistical Office, the median gross annual wage for someone working full-time in Switzerland was 81.600 Swiss francs a year. This amounts to around 6.800 Swiss francs a month.
Average salary in Switzerland by profession
Typically, your profession and seniority define how much you should be paid in Switzerland. The following table looks at the average salary in Switzerland per occupation.
Source: Federal Statistical Office (FSO), data 2022
Cheapest taxes in Switzerland
Bear in mind that Swiss cantons are also allowed to institute their own tax systems, meaning that your take-home pay will vary quite significantly depending on where in the country you live. For instance, the gross median wage of 60.847 Swiss francs a year would be subject to a regional and local tax rate of up to 27 percent in Neuchâtel, compared to just 14,9 percent in Zug.
Regional variations in an average salary in Switzerland
To this day, Switzerland has large regional variations when it comes to salaries. Italian-speaking cantons such as Ticino can have average wages that are 20 percent lower than the national average. Below is a chart showing you which areas pay higher or lower than the national average salary in Switzerland:
Source: Federal Statistical Office (FSO)
Bonus packages for work in Switzerland
As well as your gross salary, your employer will often offer various benefits. These are perks that allow for greater luxuries or more work flexibility. Particularly if you are moving to Switzerland to work at an international company, you will often be given benefits that allow for an easy transition into Swiss life for you and your family. Some of the more common benefits can be: