What does it mean to be in poverty in Switzerland?

By Jan de Boer

Though Switzerland is typically known for good salaries and high levels of wealth, the latest data from the Federal Statistical Office (FSO) has revealed that 8 percent of the population lives in poverty. Here’s what being in poverty means in the alpine nation.

708.000 people living in poverty in Switzerland

According to the latest data, 8,1 percent of the population of Switzerland was classified as income-poor at the end of 2023, 0,1 percentage points less than the year before. Nevertheless, this means that around 708.000 people are living in poverty across the country, a population the size of Geneva, Basel, Lausanne and Bern combined.

6,3 percent of the population fell into payment arrears two times or more in 2023, while 5,5 percent admitted to foregoing essential services, goods and social activities due to financial constraints. The FSO also found that 10,1 percent of people in Switzerland struggle to make ends meet, with 18,18 percent saying they would not be able to cover an unexpected fee of 2.500 francs.

What does income poor mean in a country like Switzerland?

As of 2023, an individual is considered to be in poverty if they have a salary or income of 2.315 francs a month or less. This rises to 4.051 francs a month or less for a household with two adults and two children. Those who earn less than the threshold are entitled to welfare and emergency benefits

The Conference on Social Welfare, the association which sets the metric, told the FSO that the income poverty line has been rising in recent years. This is mainly due to inflation and the increasing cost of renting a house or apartment.

The FSO noted that those with low levels of education, those living in single-parent households and residents without jobs are the most at risk of poverty. Those with Swiss residence permits are also twice as likely to be impoverished compared to citizens, especially if they hold citizenship for a country outside the EU and EFTA.

Swiss poverty rate remains below average 

Nevertheless, the poverty rate in Switzerland is less than half the EU average (21,4 percent as of 2023), and significantly less than in the country's neighbours. “Although some of the population struggles with economic hardship, the standard of living in Switzerland remains among the highest in Europe,” the FSO noted, adding that only Luxembourg, Norway and Austria sported higher living standards in 2023.

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Jan de Boer

Editor at IamExpat Media

Jan studied History at the University of York and Broadcast Journalism at the University of Sheffield. Though born in York, Jan has lived most of his life in Zurich and has worked as a journalist, writer and editor since 2016. While he has plunged head-first back into life in Switzerland since returning to the country in 2020, he still enjoys a taste of home at pub quizzes and karaoke nights.Read more

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