Why Swiss employees may get higher wages in 2024
Despite recent predictions to the contrary, salaries in Switzerland look set to increase next year.
There have been concerns lately that any wage hikes that employees in Switzerland will get in 2024 will be mostly eaten up by inflation.
So, while their nominal salaries (that is, not adjusted for inflationary forces) were to be higher on paper, real wages they will actually receive, which are adjusted for inflation, were forecast not to go up.
A recent UBS survey confirmed earlier findings showing that the expected average wage growth of 1.9 percent next year would not be enough to offset inflation — also hovering at about 1.9 percent.
In fact, “we expect a drop in household disposable income of 0.1 percent,” said UBS economist Maxime Botteron.
However, the latest forecast is not quite as glum.
In an interview with Swiss media on Monday, Severin Moser, president of the Swiss Employers' Union, said that a real increase in wages should not be ruled out.
How much of a hike can employees in Switzerland expect?
While the 4 to 5-percent increase, as demanded by trade unions, is not realistic right now, “I believe that salary increases could be higher than the inflation rate," Moser said, though exact increases are yet to be determined.
As always, they will depend not only on specific sectors, but also on individual jobs within those sectors.
READ ALSO: What are Switzerland’s highest paying jobs?
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There have been concerns lately that any wage hikes that employees in Switzerland will get in 2024 will be mostly eaten up by inflation.
So, while their nominal salaries (that is, not adjusted for inflationary forces) were to be higher on paper, real wages they will actually receive, which are adjusted for inflation, were forecast not to go up.
A recent UBS survey confirmed earlier findings showing that the expected average wage growth of 1.9 percent next year would not be enough to offset inflation — also hovering at about 1.9 percent.
In fact, “we expect a drop in household disposable income of 0.1 percent,” said UBS economist Maxime Botteron.
However, the latest forecast is not quite as glum.
In an interview with Swiss media on Monday, Severin Moser, president of the Swiss Employers' Union, said that a real increase in wages should not be ruled out.
How much of a hike can employees in Switzerland expect?
While the 4 to 5-percent increase, as demanded by trade unions, is not realistic right now, “I believe that salary increases could be higher than the inflation rate," Moser said, though exact increases are yet to be determined.
As always, they will depend not only on specific sectors, but also on individual jobs within those sectors.
READ ALSO: What are Switzerland’s highest paying jobs?
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